SB 345-6_ Filed 02/27/2006, 09:00 Orentlicher
Text Box
PREVAILED Roll Call No. _______
FAILED Ayes _______
WITHDRAWN Noes _______
RULED OUT OF ORDER
[
HOUSE MOTION ____
]
MR. SPEAKER:
I move that Engrossed Senate Bill 345 be amended to read as follows:
SOURCE: Page 2, line 18; (06)MO034504.2. -->
Page 2, between lines 18 and 19, begin a new paragraph and insert:
SOURCE: IC 6-1.1-12-18; (06)MO034504.2. -->
"SECTION 2. IC 6-1.1-12-18 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 18. (a) If the
assessed value of residential real property described in subsection (d)
is increased because
it the property has been rehabilitated, the owner
may have deducted from the assessed value of the property an amount
not to exceed the lesser of:
(1) the total increase in assessed value resulting from the
rehabilitation; or
(2) eighteen thousand seven hundred twenty dollars ($18,720) per
rehabilitated dwelling unit.
The owner is entitled to this deduction annually for a five (5) year
period.
(b) For purposes of this section, the term "rehabilitation" means
significant repairs, replacements,
remodelings, additions, or
other
improvements to an existing structure
which are intended to that
increase the
livability, utility, safety, or value of the property.
under
rules adopted by the department of local government finance.
(c) For the purposes of this section, the term "owner" or "property
owner" includes any person who has the legal obligation, or has
otherwise assumed the obligation, to pay the real property taxes on the
rehabilitated property.
(d) The deduction provided by this section applies only for the
rehabilitation of residential real property which is located within this
state and which is described in one (1) of the following classifications:
(1) a single family dwelling if before rehabilitation the assessed
value (excluding any exemptions or deductions) of the
improvements does not exceed thirty-seven thousand four hundred
forty dollars ($37,440);
(2) a two (2) family dwelling if before rehabilitation the assessed
value (excluding exemptions or deductions) of the improvements
does not exceed forty-nine thousand nine hundred twenty dollars
($49,920); and
(3) a dwelling with more than two (2) family units if before
rehabilitation the assessed value (excluding any exemptions or
deductions) of the improvements does not exceed eighteen
thousand seven hundred twenty dollars ($18,720) per dwelling
unit.
(e) If an assessed value increase referred to in subsection (a) is
attributable to both rehabilitation and:
(1) a general reassessment of real property under IC 6-1.1-4-4;
or
(2) an annual adjustment of the assessed value of real
property under IC 6-1.1-4-4.5;
the township assessor shall determine the amount of the increase
attributable to rehabilitation to determine the deduction provided
by this section. In making the determination under this subsection,
the township assessor shall consider any information contained in
the application under section 20(e) of this chapter.
SOURCE: IC 6-1.1-12-19; (06)MO034504.3. -->
SECTION 3. IC 6-1.1-12-19 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 19. (a) Except as
provided in subsection (b), the deduction from assessed value
provided by section 18 of this chapter is first available in the year in
which the increase in assessed value resulting from the rehabilitation
occurs and shall continue continues for each of the immediately
following four (4) years in the sixth (6th) year, the county auditor shall
add the amount of the deduction to the assessed value of the real
property. which the property owner remains the owner of the
property as of the assessment date.
(b) Subject to subsection (c), a property owner may:
(1) in a year after the year referred to in subsection (a) in
which a deduction is first available, obtain a deduction that:
(A) would otherwise first apply for the assessment date in
2006 or a later year; and
(B) was not made to the assessed value for any year; or
(2) obtain a deduction that:
(A) would otherwise have first applied for the assessment
date in 2005 or an earlier year; and
(B) was not made to the assessed value for any year.
If the property owner obtains a deduction under this subsection,
the deduction applies in the year for which the application is filed
and continues for each of the immediately following four (4) years
in which the property owner remains the owner of the property as
of the assessment date.
(c) Subsection (b) applies in a county only if the county fiscal
body adopts an ordinance to authorize the application of subsection
(b) in the county.
(d) A general reassessment of real property which occurs within the
five (5) year period of the deduction does not affect the amount of the
deduction.
(e) Claiming of a deduction under subsection (b) results in a
reduction of the property tax collections of each political
subdivision in which the deduction is claimed. A political
subdivision may not increase its property tax levy to make up for
that reduction.
(f) The county auditor shall in each calendar year notify each
political subdivision in which the deduction under subsection (b) is
claimed of the reduction referred to in subsection (e) for the
political subdivision for that year.
SOURCE: IC 6-1.1-12-20; (06)MO034504.4. -->
SECTION 4. IC 6-1.1-12-20 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 20. (a) A property
owner who desires to obtain the deduction provided by section 18 of
this chapter must file a certified deduction application, on forms
prescribed by the department of local government finance, with the
auditor of the county in which the rehabilitated property is located. The
application may be filed in person or by mail. If mailed, the mailing
must be postmarked on or before the last day for filing. Except as
provided in subsection (b)
or (c), the application must be filed before
May 10 June 11 of the year in which the addition to assessed value is
made.
(b) If notice of the addition to assessed value for any year is not
given to the property owner before
April 10 May 11 of that year, the
application required by
this section subsection (a) may be filed not
later than thirty (30) days after the date
such a the notice is mailed to
the property owner at the address shown on the records of the
township
assessor.
(c) An application for a deduction referred to in section 19(b) of
this chapter with respect to an assessment date must be filed before
the June 11 that next follows the assessment date.
(c) (d) The application required by this section shall contain the
following information:
(1) A description of the property for which a deduction is claimed
in sufficient detail to afford identification.
(2) Statements of the ownership of the property.
(3) The assessed value of the improvements on the property before
rehabilitation.
(4) The number of dwelling units on the property.
(5) The number of dwelling units rehabilitated.
(6) The increase in assessed value resulting from the
rehabilitation. and
(7) The amount of deduction claimed.
(e) The application required by this section may contain
information to assist the township assessor in making the
determination under section 18(e) of this chapter, including:
(1) fair market value appraisals before and after the
rehabilitation; and
(2) general market data on the extent to which particular
types of rehabilitation add to the value of a dwelling.
(d) (f) A deduction application filed under this section is applicable
for:
(1) the year in for which the increase in assessed value occurs
deduction application is filed; and for
(2) each of the immediately following four (4) years in which the
property owner remains the owner of the property as of the
assessment date;
without any additional application being filed.
(e) (g) On verification of an application by the assessor of who
serves the township area in which the property is located, the county
auditor shall make the deduction.
SOURCE: IC 6-1.1-12-22; (06)MO034504.5. -->
SECTION 5. IC 6-1.1-12-22 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 22. (a) If the
assessed value of property is increased because it the property has
been rehabilitated and the owner has paid at least ten thousand dollars
($10,000) for the rehabilitation, the owner is entitled to have deducted
from the assessed value of the property an amount equal to fifty percent
(50%) of the increase in assessed value resulting from the rehabilitation.
The owner is entitled to this deduction annually for a five (5) year
period. However, the maximum deduction which a property owner may
receive under this section for a particular year is:
(1) one hundred twenty-four thousand eight hundred dollars
($124,800) for a single family dwelling unit; or
(2) three hundred thousand dollars ($300,000) for any other type
of property.
(b) For purposes of this section, the term "property" means a
building or structure which was erected at least fifty (50) years before
the date of application for the deduction provided by this section. The
term "property" does not include land.
(c) For purposes of this section, the term "rehabilitation" means
significant repairs, replacements, remodelings, additions, or other
improvements to an existing structure that are intended to increase the
livability, utility, safety, or value of the property. under rules adopted
by the department of local government finance.
(d) If an assessed value increase referred to in subsection (a) is
attributable to both rehabilitation and:
(1) a general reassessment of real property under IC 6-1.1-4-4;
or
(2) an annual adjustment of the assessed value of real
property under IC 6-1.1-4-4.5;
the township assessor shall determine the amount of the increase
attributable to rehabilitation to determine the deduction provided
by this section. In making the determination under this subsection,
the township assessor shall consider any information contained in
the application under section 24(e) of this chapter.
SOURCE: IC 6-1.1-12-23; (06)MO034504.6. -->
SECTION 6. IC 6-1.1-12-23 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 23.
(a) Except as
provided in subsection (b), the deduction from assessed value
provided by section 22 of this chapter is first available
after the first
assessment date following in the year in which the increase in
assessed value resulting from the rehabilitation
occurs and
shall
continue continues for
the taxes first due and payable in each of the
immediately following
five (5) four (4) years in
the sixth (6th) year,
the county auditor shall add the amount of the deduction to the assessed
value of the property. which the property owner remains the owner
of the property as of the assessment date.
(b) Subject to subsection (c), a property owner may:
(1) in a year after the year referred to in subsection (a) in
which a deduction is first available, obtain a deduction that:
(A) would otherwise first apply for the assessment date in
2006 or a later year; and
(B) was not made to the assessed value for any year; or
(2) obtain a deduction that:
(A) would otherwise have first applied for the assessment
date in 2005 or an earlier year; and
(B) was not made to the assessed value for any year.
If the property owner obtains a deduction under this subsection,
the deduction applies in the year for which the application is filed
and continues for each of the immediately following four (4) years
in which the property owner remains the owner of the property as
of the assessment date.
(c) Subsection (b) applies in a county only if the county fiscal
body adopts an ordinance to authorize the application of subsection
(b) in the county.
(d) Any general reassessment of real property which occurs within
the five (5) year period of the deduction does not affect the amount of
the deduction.
(e) Claiming of a deduction under subsection (b) results in a
reduction of the property tax collections of each political
subdivision in which the deduction is claimed. A political
subdivision may not increase its property tax levy to make up for
that reduction.
(f) The county auditor shall in each calendar year notify each
political subdivision in which the deduction under subsection (b) is
claimed of the reduction referred to in subsection (e) for the
political subdivision for that year.
SOURCE: IC 6-1.1-12-24; (06)MO034504.7. -->
SECTION 7. IC 6-1.1-12-24 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 24. (a) A property
owner who desires to obtain the deduction provided by section 22 of
this chapter must file a certified deduction application, on forms
prescribed by the department of local government finance, with the
auditor of the county in which the property is located. The application
may be filed in person or by mail. If mailed, the mailing must be
postmarked on or before the last day for filing. Except as provided in
subsection (b) or (c), the application must be filed before May 10 June
11 of the year in which the addition to assessed valuation value is
made.
(b) If notice of the addition to assessed valuation value for any year
is not given to the property owner before April 10 May 11 of that year,
the application required by this section subsection (a) may be filed not
later than thirty (30) days after the date such a notice is mailed to the
property owner at the address shown on the records of the township
assessor.
(c) An application for a deduction referred to in section 23(b) of
this chapter with respect to an assessment date must be filed before
the June 11 that next follows the assessment date.
(c) (d) The application required by this section shall contain the
following information:
(1) The name of the property owner.
(2) A description of the property for which a deduction is claimed
in sufficient detail to afford identification.
(3) The assessed value of the improvements on the property before
rehabilitation.
(4) The increase in the assessed value of improvements resulting
from the rehabilitation. and
(5) The amount of deduction claimed.
(e) The application required by this section may contain
information to assist the township assessor in making the
determination under section 22(d) of this chapter, including:
(1) fair market value appraisals before and after the
rehabilitation; and
(2) general market data on the extent to which particular
types of rehabilitation add to the value of property.
(d) (f) A deduction application filed under this section is applicable
for:
(1) the year in for which the addition to assessed value is made
deduction application is filed; and in
(2) each of the immediate immediately following four (4) years
in which the property owner remains the property owner as
of the assessment date;
without any additional application being filed.
(e) (g) On verification of the correctness of an application by the
assessor of who serves the township area in which the property is
located, the county auditor shall make the deduction.
SOURCE: IC 6-1.1-12-25; (06)MO034504.8. -->
SECTION 8. IC 6-1.1-12-25 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 25. For repairs or
improvements made to a particular building or structure, a person may
receive: either
(1) the deduction provided by section 18 of this chapter; or
(2) the deduction provided by section 22 of this chapter; He or
(3) the credit provided by IC 6-1.1-47.
The person may not receive deductions a tax benefit under both
sections more than one (1) of those statutes for the repairs or
improvements.
SOURCE: IC 6-1.1-12.1-6; (06)MO034504.9. -->
SECTION 9. IC 6-1.1-12.1-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 6. (a) A property owner
may not receive a deduction under this chapter for repairs or
improvements to real property if he the owner receives:
(1) a deduction under either IC 6-1.1-12-18 or IC 6-1.1-12-22; or
(2) a credit under IC 6-1.1-47;
for those same repairs or improvements.
(b) A property owner may not receive a deduction under this chapter
if the property owner receives a deduction under IC 6-1.1-12-28.5 for
the same property.".
SOURCE: IC 6-1.1-17-1; (06)MO034504.10. -->
SECTION 10. IC 6-1.1-17-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 1. (a) On or before
August 1 of each year, the county auditor shall send a certified
statement, under the seal of the board of county commissioners, to the
fiscal officer of each political subdivision of the county and the
department of local government finance. The statement shall contain:
(1) information concerning the assessed valuation in the political
subdivision for the next calendar year;
(2) an estimate of the taxes to be distributed to the political
subdivision during the last six (6) months of the current calendar
year;
(3) the current assessed valuation as shown on the abstract of
charges;
(4) the average growth in assessed valuation in the political
subdivision over the preceding three (3) budget years, excluding
years in which a general reassessment occurs, determined
according to procedures established by the department of local
government finance;
(5) information concerning credits applicable under
IC 6-1.1-21-5.8 to taxes first due and payable in the next
calendar year; and
(5) (6) any other information at the disposal of the county auditor
that might affect the assessed value used in the budget adoption
process.
(b) The estimate of taxes to be distributed shall be based on:
(1) the abstract of taxes levied and collectible for the current
calendar year, less any taxes previously distributed for the
calendar year; and
(2) any other information at the disposal of the county auditor
which might affect the estimate.
(c) The fiscal officer of each political subdivision shall present the
county auditor's statement to the proper officers of the political
subdivision.
SOURCE: IC 6-1.1-21-5.8; (06)MO034504.11. -->
SECTION 11. IC 6-1.1-21-5.8 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]:
Sec. 5.8. (a) The following
definitions apply throughout this section:
(1) "Adjusted gross income" has the meaning set forth in
IC 6-3-1-3.5.
(2) "Assets":
(A) includes:
(i) real property, other than the homestead with respect
to which a qualifying individual applies for a credit
under this section;
(ii) cash;
(iii) savings accounts;
(iv) stocks;
(v) bonds; and
(vi) any other investment; and
(B) does not include:
(i) the cash value of life insurance policies on the life of
the qualifying individual or the qualifying individual's
spouse; and
(ii) tangible personal property.
(3) "Fiscal body" has the meaning set forth in IC 36-1-2-6.
(4) "Homestead" has the meaning set forth in
IC 6-1.1-20.9-1(2).
(5) "Household income" means the combined adjusted gross
income of the qualifying individual and the qualifying
individual's spouse.
(6) "Net property tax bill" means the amount of property
taxes currently due and payable in a particular calendar year
after the application of all deductions and credits, except for
the credit provided by this section, as evidenced by the tax
statement required in IC 6-1.1-22-8.
(7) "Net worth" means the remainder of:
(A) the sum of the current market value of all assets; minus
(B) all outstanding liabilities.
(8) "Qualifying homestead" means a homestead:
(A) that a qualifying individual:
(i) owned; or
(ii) assumed liability for the payment of property taxes;
at least five (5) years before the assessment date for the
homestead in the year for which the qualifying individual
wishes to obtain the credit under this section; and
(B) that has an assessed value of not more than one
hundred eighty thousand dollars ($180,000) as of the
assessment date for the homestead in the year that
immediately precedes the year for which the qualifying
individual wishes to obtain the credit under this section
multiplied by a fraction determined by the department of
local government finance for the county in which the
homestead is located. The numerator of the fraction is the
average homestead assessed value in the county in which
the homestead is located in the year immediately preceding
the year in which the qualifying individual wishes to obtain
the credit under this section and the denominator of the
fraction is the average homestead assessed value in Marion
County in the year immediately preceding the year in
which the qualifying individual wishes to obtain the credit
under this section.
(9) "Qualifying individual" means an individual:
(A) who is liable for the payment of property taxes on a
qualifying homestead;
(B) whose adjusted gross income for the individual's most
recent taxable year that ends before the date on which the
claim is filed under subsection (e) is less than seventy-five
thousand dollars ($75,000); and
(C) who is not married and has a net worth, or has a net
worth in combination with the net worth of the individual's
spouse, of less than two hundred thousand dollars
($200,000) as of December 31 of:
(i) with respect to real property, the year that precedes
by two (2) years the year for which the individual wishes
to obtain the credit under this section; and
(ii) 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 year that immediately
precedes the year for which the individual wishes to
obtain the credit under this section.
(10) "Taxable year" has the meaning set forth in IC 6-3-1-16.
(b) The credit provided by this section applies in a county for
property taxes first due and payable in a calendar year only if the
county fiscal body of the county adopts an ordinance to apply the
credit before July 1 of the immediately preceding calendar year. An
ordinance adopted under this subsection may authorize the credit
for more than one (1) year.
(c) The application of the credit under this chapter results in a
reduction of the property tax collections of each political
subdivision in which the credit is applied. A political subdivision
may not increase its property tax levy to make up for that
reduction.
(d) The county auditor shall in each calendar year notify each
political subdivision in which the credit under this chapter is
applied of the reduction referred to in subsection (c) for the
political subdivision for that year.
(e) Except as provided in subsection (f), each year a qualifying
individual in a county in which the credit provided by this section
is authorized under subsection (b) may receive a credit against the
net property tax bill on the individual's qualifying homestead. The
amount of the credit to which a qualifying individual is entitled
equals the lesser of two thousand dollars ($2,000) or the remainder
of:
(1) the amount of the net property tax bill without the
application of the credit provided by this section; minus
(2) the following percentage of the qualifying individual's
adjusted gross income for the qualifying individual's most
recent taxable year that ends before the date on which the
claim is filed under subsection (g):
(A) Five percent (5%) if the adjusted gross income is less
than twenty thousand dollars ($20,000).
(B) Seven percent (7%) if the adjusted gross income is at
least twenty thousand dollars ($20,000) but less than fifty
thousand dollars ($50,000).
(C) Nine percent (9%) if the adjusted gross income is at
least fifty thousand dollars ($50,000) but less than
seventy-five thousand dollars ($75,000).
The amount of the credit provided by this section may not be less
than zero (0).
(f) If the qualifying individual resides in the qualifying
homestead with the qualifying individual's spouse, those
individuals are together entitled to one (1) credit under this section
for the qualifying homestead. The amount of the credit is
determined under subsection (e), except that the household income
is substituted for the qualifying individual's adjusted gross income.
(g) A qualifying individual or a qualifying individual and the
qualifying individual's spouse who desire to claim the credit
provided by this section must file a certified statement in duplicate,
on forms prescribed by the department of local government
finance, with the auditor of the county in which the qualifying
homestead is located. With respect to real property, the statement
must be filed after January 1 and before June 11 of the year before
the year for which the qualifying individual or the qualifying
individual and the qualifying individual's spouse wish to obtain the
credit under this section. For 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 after January 1 and before
March 2 of the year for which the qualifying individual or the
qualifying individual and the qualifying individual's spouse wish to
obtain the credit under this section. The statement must contain the
following information:
(1) The full name or names and complete address of the
qualifying individual or the qualifying individual and the
qualifying individual's spouse.
(2) A description of the qualifying homestead.
(3) The amount of:
(A) the qualifying individual's adjusted gross income
referred to in subsection (e)(2); or
(B) if subsection (f) applies, the household income referred
to in subsection (f) of the qualifying individual and the
qualifying individual's spouse.
(4) The name of any other county and township in which the
qualifying individual or the qualifying individual's spouse
owns or is buying on contract:
(A) real property; or
(B) a:
(i) mobile home; or
(ii) manufactured home;
that is not assessed as real property.
(5) The record number and page where the contract or
memorandum of the contract is recorded if the qualifying
homestead is under contract purchase.
(6) Proof of net worth as of the date specified in subsection
(a)(9)(C):
(A) in a form determined by the department of local
government finance; and
(B) including:
(i) income tax returns or other evidence detailing gross
income; and
(ii) other documentation as determined by the
department of local government finance.
(7) Any other information required by the department of local
government finance.
(h) The auditor of a county with whom a statement is filed under
subsection (g) shall immediately prepare and transmit a copy of the
statement to the auditor of any other county if the qualifying
individual who claims the credit or the qualifying individual's
spouse owns or is buying property located in the other county as
described in subsection (g)(4). The auditor of the other county
described in subsection (g)(4) shall note on the copy of the
statement whether a credit has been claimed under this section for
a qualifying homestead located in the auditor's county. The auditor
shall then return the copy to the auditor of the first county.
(i) Subject to subsection (j), if a proper certified credit statement
is filed under subsection (g), the county auditor shall allow the
credit and shall apply the credit equally against each installment of
property taxes. The county auditor shall include the amount of the
credit applied against each installment of property taxes on the tax
statement required under IC 6-1.1-22-8.
(j) If the qualifying homestead qualifies for the credit under
IC 6-1.1-20.6 and a statement to claim the credit under this section
is filed under subsection (g), the county auditor shall:
(1) determine from the individual who filed the statement
whether the individual elects to have applied:
(A) the credit under this section; or
(B) the credit under IC 6-1.1-20.6; and
(2) apply only the credit elected by that individual as
determined under subdivision (1).
(k) If an individual knowingly or intentionally files a false
statement under this section, the individual must pay the amount
of any credit the individual received because of the false statement,
plus interest at the rate of ten percent (10%) per year, to the county
auditor for distribution to the taxing units of the county in the same
proportion that property taxes are distributed.
SOURCE: IC 6-1.1-21-7; (06)MO034504.12. -->
SECTION 12. IC 6-1.1-21-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 7. (a) Notwithstanding
IC 6-1.1-26, any taxpayer who is entitled to a credit under this chapter
or who has properly filed for and is entitled to a credit under
IC 6-1.1-20.9, and who, without taking the credit, pays in full the taxes
to which the credit applies, is entitled to a refund, without interest, of
an amount equal to the amount of the credit. However, if the taxpayer,
at the time a refund is claimed, owes any other taxes, interest, or
penalties payable to the county treasurer to whom the taxes subject to
the credit were paid, then the credit shall be first applied in full or
partial payment of the other taxes, interest, and penalties and the
balance, if any, remaining after that application is available as a refund
to the taxpayer.
(b) Any taxpayer entitled to a refund under this section
other than
a refund based on the credit under section 5.8 of this chapter shall
be paid that refund from proceeds of the property tax replacement fund.
However, with respect to any refund attributable to a homestead credit,
the refund shall be paid from that fund only to the extent that the
percentage homestead credit the taxpayer was entitled to receive for a
year does not exceed the percentage credit allowed in
IC 6-1.1-20.9-2(d) for that same year. Any refund in excess of that
amount shall be paid from the county's revenue distributions received
under IC 6-3.5-6.
(c) The state board of accounts shall establish an appropriate
procedure to simplify and expedite the method for claiming these
refunds and for the payments thereof, as provided for in this section,
which procedure is the exclusive procedure for the processing of the
refunds. The procedure shall, however, require the filing of claims for
the refunds by not later than June 1 of the year following the payment
of the taxes to which the credit applied.".
SOURCE: Page 3, line 10; (06)MO034504.3. -->
Page 3, between lines 10 and 11, begin a new paragraph and insert:
SOURCE: IC 6-1.1-42-22; (06)MO034504.14. -->
"SECTION 14. IC 6-1.1-42-22 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 22. (a) The designating
body shall determine whether to approve a deduction.
(b) A designating body may not grant a deduction for a facility
described in IC 6-1.1-12.1-3(e).
(c) A property owner may not receive a deduction under this chapter
for repairs or improvements to real property if the owner receives:
(1) a deduction under
either IC 6-1.1-12.1, IC 6-1.1-12-18,
IC 6-1.1-12-22, or IC 6-1.1-12-28.5;
or
(2) a credit under IC 6-1.1-47;
for the same property.
(d) A designating body may approve a deduction only if the
following findings are made in the affirmative:
(1) The applicant:
(A) has never had an ownership interest in an entity that
contributed; and
(B) has not contributed;
a contaminant (as defined in IC 13-11-2-42) that is the subject of
the voluntary remediation, as determined under the written
standards adopted by the department of environmental
management.
(2) The proposed improvement or property will be located in a
zone.
(3) The estimate of the value of the remediation and
redevelopment is reasonable for projects of that nature.
(4) The estimate of the number of individuals who will be
employed or whose employment will be retained can be
reasonably expected to result from the proposed described
remediation and redevelopment.
(5) The estimate of the annual salaries of those individuals who
will be employed or whose employment will be retained can be
reasonably expected to result from the proposed described
remediation and redevelopment.
(6) Any other benefits about which information was requested are
benefits that can be reasonably expected to result from the
proposed described remediation and redevelopment.
(7) The totality of benefits is sufficient to justify the deduction.
SOURCE: IC 6-1.1-47; (06)MO034504.15. -->
SECTION 15. IC 6-1.1-47 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2006]:
Chapter 47. Historic Rehabilitation Property Tax Credit
Sec. 1. The definitions in IC 6-3.1-16 and IC 6-3.1-22 apply
throughout this section.
Sec. 2. (a) A county fiscal body may adopt an ordinance to
authorize the application of the credit under this chapter against an
owner's property tax liability that is attributable to increases in
assessed valuation of the owner's historic property resulting from
the rehabilitation of the historic property.
(b) An ordinance adopted under this section must specify the
first assessment date for which an increase in the assessed valuation
of an historic property resulting from rehabilitation becomes
eligible for a credit under this chapter.
Sec. 3. An ordinance adopted under section 2 of this chapter
authorizes the credit for:
(1) the first calendar year that the owner's property tax
liability is determined using an increase in the historic
property's assessed valuation resulting from the rehabilitation
of the historic property; and
(2) the four (4) succeeding calendar years during the five (5)
year period referred to in section 5 of this chapter.
Sec. 4. Subject to section 11 of this chapter and IC 6-1.1-12-25,
if:
(1) the assessed valuation of historic property is increased:
(A) as a result of rehabilitation; and
(B) as of an assessment date to which an ordinance adopted
under section 2 of this chapter applies; and
(2) the owner is eligible for a historic rehabilitation credit
under IC 6-3.1-16 or IC 6-3.1-22 against the owner's state tax
liability based on the rehabilitation;
the owner is entitled to a credit against the owner's property tax
liability attributable to the property. The amount of the credit to
which the owner is entitled is determined under section 5 of this
chapter.
Sec. 5. (a) Subject to subsection (b), the amount of the credit
equals one hundred percent (100%) of the owner's property tax
liability that is attributable to the increase in assessed valuation
resulting from the rehabilitation. The owner is entitled to this
credit annually for a five (5) year period. The first year of that
period is the first year that the rehabilitation results in an increase
in the owner's property tax liability attributable to the historic
property. If the rehabilitation results in increases in the property
tax liability attributable to the historic property in more than one
(1) year, each annual increase may qualify separately for the credit.
(b) If:
(1) a general reassessment of real property under IC 6-1.1-4-4
or an adjustment under IC 6-1.1-4-4.5 occurs within the
period of the credit; or
(2) an appeal of an assessment is approved that results in a
change in the assessed valuation of the historic property;
the amount of the credit shall be adjusted to reflect the resulting
percentage increase or decrease in the assessed valuation of the
historic property and its corresponding effect on the property tax
liability attributable to the historic property.
Sec. 6. The credit reduces the amount of historic rehabilitation
credit to which the owner is entitled under IC 6-3.1-16-7 or
IC 6-3.1-22-8. This credit shall be applied before the homestead
credit provided under IC 6-1.1-20.9 and the property tax
replacement credit provided under IC 6-1.1-21.
Sec. 7. A property owner who desires to obtain the credit must
file a certified credit application, on forms prescribed by the
department of local government finance, with the auditor of the
county in which the property is located. The application may be
filed in person or by mail. If mailed, the mailing must be
postmarked on or before the last day for filing. The statement must
be filed during the twelve (12) months before June 11 of the year
prior to the first year for which the person wishes to obtain the
credit for the historic property.
Sec. 8. The application required by section 7 of this chapter
must contain the following information:
(1) The name of the property owner.
(2) A description of the property for which a credit is claimed
in sufficient detail to afford identification.
(3) The certifications required:
(A) under IC 6-3.1-16-8 to obtain the credit under
IC 6-3.1-16; or
(B) under IC 6-3.1-22-9 to obtain the credit under
IC 6-3.1-22.
(4) A description of the rehabilitation of the historic property.
(5) Evidence of the cost of the rehabilitation of the historic
property.
(6) The assessed valuation of the improvements on the historic
property before the rehabilitation.
(7) The increase in the assessed valuation of improvements
resulting from the rehabilitation.
Sec. 9. A credit application filed under section 8 of this chapter
applies for the entire period under section 5 of this chapter that the
owner is entitled to a credit under this chapter without a
requirement for any additional application.
Sec. 10. On verification of the correctness of an application by
the assessor of the township in which the property is located, the
county auditor shall make the credit in the amount determined
under section 5 of this chapter.
Sec. 11. If the conditions for the recapture of a credit under
IC 6-3.1-16-12 or IC 6-3.1- 22-13 are met, the property owner shall
pay to the county treasurer for each year the credit was in effect
the amount of additional property taxes for which the property
owner would have been liable if the credit had not been in effect.
The county treasurer shall distribute money paid under this section
proportionately to the general fund of each taxing unit in which the
property that was subject to the credit is located based on the
property tax rates of the units.
Sec. 12 (a) The application of the credit under this chapter
results in a reduction of the property tax collections of each
political subdivision in which the credit is applied. A political
subdivision may not increase its property tax levy to make up for
that reduction.
(b) The county auditor shall in each calendar year notify each
political subdivision in which the credit under this chapter is
applied of the reduction referred to in subsection (a) for the
political subdivision for that year.
Sec. 13. The department of local government finance may adopt
rules under IC 4-22-2 to implement this section.".
SOURCE: Page 14, line 22; (06)MO034504.14. -->
Page 14, between lines 22 and 23, begin a new paragraph and insert:
SOURCE: IC 6-3.1-16-7; (06)MO034504.17. -->
"SECTION 17. IC 6-3.1-16-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 7. (a) Subject to section
14 of this chapter
and except as provided in subsection (d), a
taxpayer is entitled to a credit against the taxpayer's state tax liability
in the taxable year in which the taxpayer completes the preservation or
rehabilitation of historic property and obtains the certifications required
under section 8 of this chapter.
(b)
Except as provided in subsection (d), the amount of the credit
is equal to twenty percent (20%) of the qualified expenditures that:
(1) the taxpayer makes for the preservation or rehabilitation of
historic property; and
(2) are approved by the division.
(c) In the case of a husband and wife who:
(1) own and rehabilitate a historic property jointly; and
(2) file separate tax returns;
the husband and wife may take the credit in equal shares or one (1)
spouse may take the whole credit.
(d) The amount of the credit for a taxable year is reduced by the
amount by which the taxpayer's property tax liability is reduced
for taxes first due and payable in the taxable year as the result of
the application of the credit under IC 6-1.1-47.
SOURCE: IC 6-3.1-16-10; (06)MO034504.18. -->
SECTION 18. IC 6-3.1-16-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 10. To obtain a credit
under this chapter, a taxpayer must claim the credit on the taxpayer's
annual state tax return or returns in the manner prescribed by the
department of state revenue. The taxpayer shall submit to the
department of state revenue:
(1) the certifications by the division required under section 8 of
this chapter;
(2) a statement whether the taxpayer claimed a property tax
credit based on the rehabilitation under IC 6-1.1-47 that
resulted in a reduction of the taxpayer's liability for property
taxes first due and payable in the taxable year for which the
credit is claimed;
(3) if the taxpayer's property tax liability was reduced as
described in subdivision (2), the amount of the reduction for
property taxes first due and payable in the taxable year for
which the credit is claimed; and
(4) all other information that the department of state revenue
determines is necessary for the calculation of the credit provided
by this chapter.
SOURCE: IC 6-3.1-22-8; (06)MO034504.19. -->
SECTION 19. IC 6-3.1-22-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 8. (a) Subject to section
14 of this chapter and except as provided in subsection (d), a
taxpayer is entitled to a credit against the taxpayer's state tax liability
in the taxable year in which the taxpayer completes the preservation or
rehabilitation of historic property and obtains the certifications required
under section 9 of this chapter.
(b) The amount of the credit is equal to twenty percent (20%) of the
qualified expenditures that:
(1) the taxpayer makes for the preservation or rehabilitation of
historic property; and
(2) are approved by the division.
(c) In the case of a husband and wife who:
(1) own and rehabilitate a historic property jointly; and
(2) file separate tax returns;
the husband and wife may take the credit in equal shares or one (1)
spouse may take the whole credit.
(d) The amount of the credit for a taxable year is reduced by the
amount by which the taxpayer's property tax liability is reduced
for taxes first due and payable in the taxable year as the result of
the application of the credit under IC 6-1.1-47.
SOURCE: IC 6-3.1-22-11; (06)MO034504.20. -->
SECTION 20. IC 6-3.1-22-11 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 11. To obtain a credit
under this chapter, a taxpayer must claim the credit on the taxpayer's
annual state tax return or returns in the manner prescribed by the
department of state revenue. The taxpayer shall submit to the
department of state revenue:
(1) the certifications by the division required under section 9 of
this chapter;
(2) a statement whether the taxpayer claimed a property tax
credit based on the rehabilitation under IC 6-1.1-47 that
resulted in a reduction of the taxpayer's liability for property
taxes first due and payable in the taxable year for which the
credit is claimed;
(3) if the taxpayer's property tax liability was reduced as
described in subdivision (2), the amount of the reduction for
property taxes first due and payable in the taxable year for
which the credit is claimed; and
(4) all other information that the department of state revenue
determines is necessary for the calculation of the credit provided
by this chapter.".
SOURCE: Page 20, line 8; (06)MO034504.20. -->
Page 20, between lines 8 and 9, begin a new paragraph and insert:
SOURCE: ; (06)MO034504.26. -->
"SECTION 26. [EFFECTIVE JULY 1, 2006] (a) IC 6-1.1-47, as
added by this act, and IC 6-1.1-12-18, IC 6-1.1-12-22, and
IC 6-1.1-12-25, all as amended by this act, apply only to property
taxes first due and payable after December 31, 2006.
(b) The credit under IC 6-1.1-47, as added by this act, applies
regardless of whether the rehabilitation for which the deduction is
claimed occurred before July 1, 2006.
SOURCE: ; (06)MO034504.27. -->
SECTION 27. [EFFECTIVE UPON PASSAGE] (a) As used in this
SECTION:
(1) "assessment date" has the meaning set forth in
IC 6-1.1-1-2; and
(2) "rehabilitation" has the meaning set forth in:
(A) IC 6-1.1-12-18(b), as amended by this act; and
(B) IC 6-1.1-12-22(c), as amended by this act.
(b) For property taxes first due and payable after December 31,
2006, a property owner may file an application before July 1, 2006,
for a deduction:
(1) under:
(A) IC 6-1.1-12-19(b)(2), as amended by this act; or
(B) IC 6-1.1-12-23(b)(2), as amended by this act; or
(2) first applicable to the assessment date in 2006 under:
(A) IC 6-1.1-12-20, as amended by this act; or
(B) IC 6-1.1-12-24, as amended by this act;
based on rehabilitation completed after March 1, 2005, and before
March 2, 2006.
(c) This SECTION expires January 1, 2007.
SOURCE: ; (06)MO034504.28. -->
SECTION 28. [EFFECTIVE UPON PASSAGE] (a) As used in this
SECTION:
(1) "assessment date" has the meaning set forth in
IC 6-1.1-1-2; and
(2) "rehabilitation" has the meaning set forth in IC 6-3.1-22-5.
(b) For property taxes first due and payable after December 31,
2006, a property owner may file an application before July 1, 2006,
for a credit under IC 6-1.1-47, as added by this act, first applicable
to the assessment date in 2006 based on rehabilitation completed
after March 1, 2005, and before March 2, 2006.
(c) This SECTION expires January 1, 2007.
SOURCE: ; (06)MO034504.29. -->
SECTION 29. [EFFECTIVE UPON PASSAGE]
IC 6-1.1-21-5.8,
as added by this act, applies only to property taxes first due and
payable after December 31, 2006.".
Renumber all SECTIONS consecutively.
(Reference is to ESB 345 as printed February 24, 2006.)
________________________________________
Representative Orentlicher
MO034504/DI 114 2006