January 13, 2004
HOUSE BILL No. 1002
_____
DIGEST OF HB 1002
(Updated January 7, 2004 8:50 pm - DI 92)
Citations Affected: IC 6-1.1; noncode.
Synopsis: Standard homestead deduction. Applies the provisions
related to the assessment of rental property for assessment dates after
February 29, 2004 and property taxes first due and payable in 2005 and
thereafter. Increases the maximum homestead standard deduction
amount for two years. Increases the minimum standard homestead
deduction from 50% of the assessed value of the homestead to 55% of
the assessed value of the homestead.
Effective: Upon passage.
Bauer
December 4, 2003, read first time and referred to Committee on Ways and Means.
January 12, 2004, amended, reported _ Do Pass.
January 13, 2004
Second Regular Session 113th General Assembly (2004)
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HOUSE BILL No. 1002
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 6-1.1-4-39; (04)HB1002.1.1. -->
SECTION 1. IC 6-1.1-4-39, AS ADDED BY P.L.1-2004, SECTION
8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON
PASSAGE]: Sec. 39. (a) For assessment dates after February
28, 2005,
29, 2004, except as provided in subsection (c), the true tax value of real
property regularly used to rent or otherwise furnish residential
accommodations for periods of thirty (30) days or more and that has
more than four (4) rental units is the lowest valuation determined by
applying each of the following appraisal approaches:
(1) Cost approach that includes an estimated reproduction or
replacement cost of buildings and land improvements as of the
date of valuation together with estimates of the losses in value
that have taken place due to wear and tear, design and plan, or
neighborhood influences.
(2) Sales comparison approach, using data for generally
comparable property.
(3) Income capitalization approach, using an applicable
capitalization method and appropriate capitalization rates that are
developed and used in computations that lead to an indication of
value commensurate with the risks for the subject property use.
(b) The gross rent multiplier method is the preferred method of
valuing:
(1) real property that has at least one (1) and not more than four
(4) rental units; and
(2) mobile homes assessed under IC 6-1.1-7.
(c) A township assessor is not required to appraise real property
referred to in subsection (a) using the three (3) appraisal approaches
listed in subsection (a) if the township assessor and the taxpayer agree
before notice of the assessment is given to the taxpayer under section
22 of this chapter to the determination of the true tax value of the
property by the assessor using one (1) of those appraisal approaches.
(d) To carry out this section, the department of local government
finance may adopt rules for assessors to use in gathering and
processing information for the application of the income capitalization
method and the gross rent multiplier method. A taxpayer must verify
under penalties for perjury any information provided to the assessor for
use in the application of either method.
SOURCE: IC 6-1.1-12-37; (04)HB1002.1.2. -->
SECTION 2. IC 6-1.1-12-37, AS AMENDED BY P.L.192-2002(ss),
SECTION 32, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 37. (a) Each year a person who is entitled to
receive the homestead credit provided under IC 6-1.1-20.9 for property
taxes payable in the following year is entitled to a standard deduction
from the assessed value of the real property, mobile home not assessed
as real property, or manufactured home not assessed as real property
that qualifies for the homestead credit. The auditor of the county shall
record and make the deduction for the person qualifying for the
deduction.
(b) Except as provided in section 40.5 of this chapter, the total
amount of the deduction that a person may receive under this section
for a particular year is the lesser of:
(1)
one-half (1/2) fifty-five percent (55%) of the assessed value
of the real property, mobile home not assessed as real property, or
manufactured home not assessed as real property; or
(2)
the following:
(A) Thirty-five thousand dollars ($35,000)
for property taxes
first due and payable in 2003 (or that would have been first
due and payable in 2003 if the general reassessment
affecting the taxing unit had been completed on the date
required under IC 6-1.1-4-4(a)).
(B) Forty-four thousand dollars ($44,000) for property
taxes first due and payable in 2004 (excluding any amount
that would have been first due and payable in 2003 if the
general reassessment affecting the taxing unit had been
completed on the date required under IC 6-1.1-4-4(a)).
(C) Thirty-nine thousand five hundred dollars ($39,500),
for property taxes first due and payable in 2005.
(D) Thirty-five thousand dollars ($35,000) for property
taxes first due and payable in 2006 and thereafter.
(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 that 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.
SOURCE: ; (04)HB1002.1.3. -->
SECTION 3. [EFFECTIVE UPON PASSAGE] (a) IC 6-1.1-12-37,
as amended by this act, applies only to property taxes first due and
payable after December 31, 2003, for assessment dates after
February 28, 2003.
(b) Each year a person who is entitled to receive the homestead
credit under IC 6-1.1-20.9 for property taxes first due and payable
in 2004 is entitled for that year to the deduction under
IC 6-1.1-12-37, as amended by this act, from the assessed value of
the real property that qualifies for the homestead credit.
SOURCE: ; (04)HB1002.1.4. -->
SECTION 4.
An emergency is declared for this act.