Introduced Version






SENATE BILL No. 387

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DIGEST OF INTRODUCED BILL



Citations Affected: IC 6-1.1-37-14.

Synopsis: Property tax reduction for timely payments. Provides a property tax credit to a real property owner that consistently pays real property taxes in a timely manner for the same property. Provides a credit for one year of 10% after five years of ownership and timely payments, 15% after ten years, and 20% after 20 years. Specifies that 2013 is the first year that may be used toward the consecutive year requirement.

Effective: January 1, 2013.





Young R, Randolph




    January 9, 2012, read first time and referred to Committee on Appropriations.







Introduced

Second Regular Session 117th General Assembly (2012)


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SENATE BILL No. 387



    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 6-1.1-37-14; (12)IN0387.1.1. -->     SECTION 1. IC 6-1.1-37-14 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2013]: Sec. 14. (a) This section applies to property tax payments after December 31, 2012.
    (b) A taxpayer that:
        (1) is the owner of real property; and
        (2) timely pays the full amount of the taxpayer's real property tax liability on that real property;
for the number of consecutive years specified in subsection (c), is entitled to a real property tax credit for one (1) year in the percentage amount specified in subsection (c). The first year that may be counted toward the consecutive year requirement is 2013.
    (c) The number of consecutive years of ownership and timely real property tax payments required for a taxpayer described in subsection (b) to receive the corresponding credit is as follows:
        Consecutive Years        Credit Percentage
            Five (5) years    10% in the sixth year
            Ten (10) years    15% in the eleventh year
            Twenty (20) years    20% in the twenty-first year
    (d) If a taxpayer:
        (1) makes twenty (20) years of consecutive timely payments; or
        (2) fails to make a timely payment;
the time period for that taxpayer begins again at zero (0) years. A payment may be used only once toward the consecutive timely payment requirement with respect to each five (5) or ten (10) year time period.
    (e) A taxpayer is not required to claim the credit provided by this section. The county auditor and treasurer shall apply the credit automatically in the year immediately following the last year of the corresponding consecutive year period as a percentage of the amount of real property taxes owed by the taxpayer in that year.