Reprinted

February 24, 2010





ENGROSSED

SENATE BILL No. 223

_____


DIGEST OF SB 223 (Updated February 23, 2010 6:39 pm - DI 92)



Citations Affected: IC 6-1.1; noncode.

Synopsis: Property taxes. Adds Masonic Lodges, Scottish Rite Valleys, and their appendant bodies to the list of specified organizations whose property is exempt from property taxes. Provides that the form prescribed by the department of local government finance (DLGF) to claim the mortgage deduction and the instructions for the form must both include a statement specifying that a person is not entitled to the deduction unless the person has a balance on the person's mortgage or contract indebtedness (including any home equity line of credit) that is the basis for the deduction. Requires the statement to specify the penalties for perjury. Requires the DLGF to develop a notice that must be displayed in the office of each county auditor concerning the application for the mortgage deduction. Indicates that mortgages, contracts, memoranda, and home equity lines of credit must be recorded to be eligible for a mortgage deduction.

Effective: Upon passage; July 1, 2010.





Holdman, Landske, Miller, Charbonneau
(HOUSE SPONSORS _ PRYOR, CLEMENTS)




    January 11, 2010, read first time and referred to Committee on Appropriations.
    January 25, 2010, amended, reported favorably _ Do Pass.
    January 28, 2010, read second time, ordered engrossed.
    January 29, 2010, engrossed.
    February 2, 2010, read third time, passed. Yeas 47, nays 3.

HOUSE ACTION

    February 8, 2010, read first time and referred to Committee on Ways and Means.
    February 18, 2010, amended, reported _ Do Pass.
    February 23, 2010, read second time, amended, ordered engrossed.





Reprinted

February 24, 2010

Second Regular Session 116th General Assembly (2010)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2009 Regular and Special Sessions of the General Assembly.


ENGROSSED

SENATE BILL No. 223



    A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 6-1.1-10-25; (10)ES0223.2.1. -->     SECTION 1. IC 6-1.1-10-25 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 25. (a) Subject to the limitations contained in subsection (b) of this section, tangible property is exempt from property taxation if it is owned by any of the following organizations:
        (1) The Young Men's Christian Association.
        (2) The Salvation Army, Inc.
        (3) The Knights of Columbus.
        (4) The Young Men's Hebrew Association.
        (5) The Young Women's Christian Association.
        (6) A chapter or post of Disabled American Veterans of World War I or II.
        (7) A chapter or post of the Veterans of Foreign Wars.
        (8) A post of the American Legion.
        (9) A post of the American War Veterans.
        (10) A camp of United States Spanish War Veterans.
        (11) The Boy Scouts of America, one (1) or more of its

incorporated local councils, or a bank or trust company in trust for the benefit of one (1) or more of its local councils.
        (12) The Girl Scouts of the U.S.A., one or more of its incorporated local councils, or a bank or trust company in trust for the benefit of one (1) or more of its local councils.
         (13) Masonic Lodges, Scottish Rite Valleys, and appendant bodies.
    (b) This exemption does not apply unless the property is exclusively used, and in the case of real property actually occupied, for the purposes and objectives of the organization.

SOURCE: IC 6-1.1-12-1; (10)ES0223.2.2. -->     SECTION 2. IC 6-1.1-12-1, AS AMENDED BY P.L.144-2008, SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 1. (a) Each year a person who is a resident of this state may receive a deduction from the assessed value of:
        (1) mortgaged real property, an installment loan financed mobile home that is not assessed as real property, or an installment loan financed manufactured home that is not assessed as real property, with the mortgage or installment loan instrument recorded with the county recorder's office, that he the person owns; or
        (2) real property, a mobile home that is not assessed as real property, or a manufactured home that is not assessed as real property that he the person is buying under a contract, with the contract or a memorandum of the contract recorded in the county recorder's office, which provides that he the person is to pay the property taxes on the real property, mobile home, or manufactured home; or
        (3) real property, a mobile home that is not assessed as real property, or a manufactured home that the person owns or is buying on a contract described in subdivision (2) on which the person has a home equity line of credit that is recorded in the county recorder's office.

    (b) Except as provided in section 40.5 of this chapter, the total amount of the deduction which the person may receive under this section for a particular year is:
        (1) the balance of the mortgage or contract indebtedness (including home equity line of credit) on the assessment date of that year;
        (2) one-half (1/2) of the assessed value of the real property, mobile home, or manufactured home; or
        (3) three thousand dollars ($3,000);
whichever is least.
    (c) A person who has sold real property, a mobile home not assessed

as real property, or a manufactured home not assessed as real property to another person under a contract which provides that the contract buyer is to pay the property taxes on the real property, mobile home, or manufactured home may not claim the deduction provided under this section with respect to that real property, mobile home, or manufactured home.
    (d) The person must:
        (1) own the real property, mobile home, or manufactured home; or
        (2) be buying the real property, mobile home, or manufactured home under contract;
on the date the statement is filed under section 2 of this chapter.

SOURCE: IC 6-1.1-12-2; (10)ES0223.2.3. -->     SECTION 3. IC 6-1.1-12-2, AS AMENDED BY P.L.182-2009(ss), SECTION 108, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 2. (a) Except as provided in section 17.8 of this chapter and subject to section 45 of this chapter, to qualify for the deduction provided by section 1 of this chapter a statement must be filed under subsection (b) or (c). Regardless of the manner in which a statement is filed, the mortgage, contract, or memorandum (including a home line of credit) must be recorded with the county recorder's office to qualify for a deduction under section 1 of this chapter.
    (b) Subject to subsection (c), to apply for the deduction under section 1 of this chapter with respect to real property, the person recording the mortgage, home equity line of credit, contract, or memorandum of the contract with the county recorder may file a written statement with the county recorder containing the information described in subsection (e)(1), (e)(2), (e)(3), (e)(4), (e)(6), (e)(7), and (e)(8). The statement must be prepared on the form prescribed by the department of local government finance and be signed by the property owner or contract purchaser under the penalties of perjury. The form must have a place for the county recorder to insert the record number and page where the mortgage, home equity line of credit, contract, or memorandum of the contract is recorded. Upon receipt of the form and the recording of the mortgage, home equity line of credit, contract, or memorandum of the contract, the county recorder shall insert on the form the record number and page where the mortgage, home equity line of credit, contract, or memorandum of the contract is recorded and forward the completed form to the county auditor. The county recorder may not impose a charge for the county recorder's duties under this subsection. The statement must be completed and dated in the calendar year for which the person wishes to obtain the deduction and filed with

the county recorder on or before January 5 of the immediately succeeding calendar year.
    (c) With respect to:
        (1) real property as an alternative to a filing under subsection (b); or
        (2) a mobile home that is not assessed as real property or a manufactured home that is not assessed as real property;
to apply for a deduction under section 1 of this chapter, a person who desires to claim the deduction may file a statement in duplicate, on forms prescribed by the department of local government finance, with the auditor of the county in which the real property, mobile home not assessed as real property, or manufactured home not assessed as real property is located. With respect to real property the statement must be completed and dated in the calendar year for which the person wishes to obtain the deduction and filed with the county auditor on or before January 5 of the immediately succeeding calendar year. With respect to a mobile home that is not assessed as real property or a manufactured home that is not assessed as real property, the statement must be filed during the twelve (12) months before March 31 of each year for which the individual wishes to obtain the deduction. The statement may be filed in person or by mail. If mailed, the mailing must be postmarked on or before the last day for filing. In addition to the statement required by this subsection, a contract buyer who desires to claim the deduction must submit a copy of the recorded contract or recorded memorandum of the contract, which must contain a legal description sufficient to meet the requirements of IC 6-1.1-5, with the first statement that the buyer files under this section with respect to a particular parcel of real property.
    (d) Upon receipt of:
        (1) the statement under subsection (b); or
        (2) the statement under subsection (c) and the recorded contract or recorded memorandum of the contract;
the county auditor shall assign a separate description and identification number to the parcel of real property being sold under the contract.
    (e) The statement referred to in subsections (b) and (c) must be verified under penalties for perjury. The statement must contain the following information:
        (1) The balance of the person's mortgage, home equity line of credit, or contract indebtedness that is recorded in the county recorder's office on the assessment date of the year for which the deduction is claimed.
        (2) The assessed value of the real property, mobile home, or

manufactured home.
        (3) The full name and complete residence address of the person and of the mortgagee or contract seller.
        (4) The name and residence of any assignee or bona fide owner or holder of the mortgage, home equity line of credit, or contract, if known, and if not known, the person shall state that fact.
        (5) The record number and page where the mortgage, contract, or memorandum of the contract is recorded.
        (6) A brief description of the real property, mobile home, or manufactured home which is encumbered by the mortgage or home equity line of credit or sold under the contract.
        (7) If the person is not the sole legal or equitable owner of the real property, mobile home, or manufactured home, the exact share of the person's interest in it.
        (8) The name of any other county in which the person has applied for a deduction under this section and the amount of deduction claimed in that application.
    (f) The authority for signing a deduction application filed under this section may not be delegated by the real property, mobile home, or manufactured home owner or contract buyer to any person except upon an executed power of attorney. The power of attorney may be contained in the recorded mortgage, contract, or memorandum of the contract, or in a separate instrument.
    (g) A closing agent, as defined in IC 6-1.1-12-43(a)(2), is not liable for any damages claimed by the property owner or contract purchaser because of:
        (1) the closing agent's failure to provide the written statement described in subsection (b);
        (2) the closing agent's failure to file the written statement described in subsection (b);
        (3) any omission or inaccuracy in the written statement described in subsection (b) that is filed with the county recorder by the closing agent; or
        (4) any determination made with respect to a property owner's or contract purchaser's eligibility for the deduction under section 1 of this chapter.
    (h) The county recorder may not refuse to record a mortgage, contract, or memorandum because the written statement described in subsection (b):
        (1) is not included with the mortgage, home equity line of credit, contract, or memorandum of the contract;
        (2) does not contain the signatures required by subsection (b);


        (3) does not contain the information described in subsection (e); or
        (4) is otherwise incomplete or inaccurate.
    (i) The form prescribed by the department of local government finance under subsection (b) and the instructions for the form must both include a statement:
        (1) that explains that a person is not entitled to a deduction under section 1 of this chapter unless the person has a balance on the person's mortgage or contract indebtedness that is recorded in the county recorder's office (including any home equity line of credit that is recorded in the county recorder's office) that is the basis for the deduction; and
        (2) that specifies the penalties for perjury.
    (j) The department of local government finance shall develop a notice:
        (1) that must be displayed in a place accessible to the public in the office of each county auditor;
        (2) that includes the information described in subsection (i); and
        (3) that explains that the form prescribed by the department of local government finance to claim the deduction under section 1 of this chapter must be signed by the property owner or contract purchaser under the penalties of perjury.

SOURCE: ; (10)ES0223.2.4. -->     SECTION 4. [EFFECTIVE UPON PASSAGE] (a) IC 6-1.1-10-25, as amended by this act, applies to assessment dates occurring after February 28, 2010, for property taxes first due and payable after December 31, 2010.
    (b) This SECTION expires January 1, 2012.

SOURCE: ; (10)ES0223.2.5. -->     SECTION 5. An emergency is declared for this act.