CHAPTER 12.6. DEDUCTION FOR MODEL RESIDENCE
IC 6-1.1-12.6
Chapter 12.6. Deduction for Model Residence
IC 6-1.1-12.6-0.5
"Affiliated group"
Sec. 0.5. As used in this chapter, "affiliated group" means anycombination of the following:
(1) An affiliated group within the meaning provided in Section1504 of the Internal Revenue Code (except that the ownershippercentage in Section 1504(a)(2) of the Internal Revenue Codeshall be determined using fifty percent (50%) instead of eightypercent (80%)) or a relationship described in Section267(b)(11) of the Internal Revenue Code.
(2) Two (2) or more partnerships (as defined in IC 6-3-1-19),including limited liability companies and limited liabilitypartnerships, that have the same degree of mutual ownership asan affiliated group described in subdivision (1), as determinedunder the rules adopted by the department of local governmentfinance.
As added by P.L.70-2008, SEC.1. Amended by P.L.1-2009, SEC.41.
IC 6-1.1-12.6-1
"Model residence"
Sec. 1. (a) As used in this chapter, "model residence" means realproperty that consists of a single family residence, single familytownhouse, or single family condominium unit that:
(1) has never been occupied as a principal residence; and
(2) is used for display or demonstration to prospective buyersor lessees for purposes of potential acquisition or lease of asimilar type of residence, townhouse, or condominium unit on:
(A) the same property; or
(B) other property.
(b) The term does not include any of the land on which theresidence, townhouse, or condominium unit is located.
(c) Real property described in subsection (a) that is used by theowner as the owner's regular office space may not be considered amodel residence for purposes of this chapter. However, thissubsection does not prohibit the use of a garage or other space in thereal property:
(1) to store or display material used to promote the real propertyor other similar properties; or
(2) as a space for meetings with prospective buyers or lessees.
As added by P.L.70-2008, SEC.1.
IC 6-1.1-12.6-2
Applicability; amount of deduction; termination of deduction onsale of residence
Sec. 2. (a) This section applies only to a model residence that isfirst assessed as:
(1) a partially completed structure; or (2) a fully completed structure;
for the assessment date in 2009 or a later year.
(b) Except as provided in subsection (c) and sections 4, 5, and 6of this chapter, and subject to sections 7 and 8 of this chapter, anowner of a model residence is entitled to a deduction from theassessed value of the model residence in the amount of fifty percent(50%) of the assessed value of the model residence for the following:
(1) Not more than one (1) assessment date for which the modelresidence is assessed as a partially completed structure.
(2) The assessment date for which the model residence is firstassessed as a fully completed structure.
(3) The two (2) assessment dates that immediately succeed theassessment date referred to in subdivision (2).
(c) A deduction allowed for a model residence under this chapterfor a particular assessment date is terminated if the model residenceis sold:
(1) after the assessment date of that year but before January 1of the following year; and
(2) to a person who does not continue to use the real propertyas a model residence.
The county auditor shall immediately mail notice of the terminationto the former owner, the property owner, and the township assessor.The county auditor shall remove the deduction from the tax duplicateand shall notify the county treasurer of the termination of thededuction.
As added by P.L.70-2008, SEC.1.
IC 6-1.1-12.6-2.1
Applicability; assessment date in 2008
Sec. 2.1. (a) This section applies only to a model residence that isfirst assessed as:
(1) a partially completed structure; or
(2) a fully completed structure;
for the assessment date in 2008 and was still a model residence onJanuary 1, 2009.
(b) Except as provided in subsection (c) and sections 4, 5, and 6of this chapter, and subject to sections 7 and 8 of this chapter, anowner of a model residence is entitled to a deduction from theassessed value of the model residence in the amount of fifty percent(50%) of the assessed value of the model residence for the 2008assessment date. A deduction under this section counts as adeduction for an assessment date for purposes of section 2 of thischapter.
(c) A property owner that qualifies for the deduction under thissection must file a statement containing the information required bysubsection (d) with the county auditor to claim the deduction for the2008 assessment date in the manner prescribed in emergency rules,which shall be adopted by the department of local governmentfinance under IC 4-22-2. The township assessor shall verify eachstatement filed under this section, and the county auditor shall: (1) make the deductions; and
(2) notify the county property tax assessment board of appealsof all deductions approved;
under this section. If the property taxes due for the 2008 assessmentdate have been paid, the person that paid the property taxes isentitled to a refund of the amount that has been overpaid afterapplying the deduction under this section. A property owner is notrequired to apply for a refund due under this section. The countyauditor shall, without an appropriation being required, issue awarrant to the property owner payable from the county general fundfor the amount of the refund due the property owner. In the June orDecember settlement and apportionment of taxes, or both,immediately following a refund made under this section the countyauditor shall deduct the amount refunded from the gross taxcollections of the taxing units for which the refunded taxes wereoriginally paid and shall pay the amount so deducted into the generalfund of the county. However, the county auditor shall make thedeductions and payments required by this subsection not later thanthe December settlement and apportionment.
(d) The statement referred to in subsection (c) must be verifiedunder penalties for perjury and must contain the followinginformation:
(1) The assessed value of the real property for which the personis claiming the deduction.
(2) The full name and complete business address of the personclaiming the deduction.
(3) The complete address and a brief description of the realproperty for which the person is claiming the deduction.
(4) The name of any other county in which the person hasapplied for a deduction under this section for that assessmentdate.
(5) The complete address and a brief description of any otherreal property for which the person has applied for a deductionunder this section for the 2008 assessment date.
(e) This section expires January 1, 2011.
As added by P.L.167-2009, SEC.1.
IC 6-1.1-12.6-3
Statement to claim deduction and information required; filingrequirement; county auditor duties
Sec. 3. (a) A property owner that qualifies for the deduction underthis chapter must file a statement containing the information requiredby subsection (b) with the county auditor to claim the deduction foreach assessment date for which the property owner wishes to receivethe deduction in the manner prescribed in rules adopted under section9 of this chapter. The township assessor shall verify each statementfiled under this section, and the county auditor shall:
(1) make the deductions; and
(2) notify the county property tax assessment board of appealsof all deductions approved;under this section.
(b) The statement referred to in subsection (a) must be verifiedunder penalties for perjury and must contain the followinginformation:
(1) The assessed value of the real property for which the personis claiming the deduction.
(2) The full name and complete business address of the personclaiming the deduction.
(3) The complete address and a brief description of the realproperty for which the person is claiming the deduction.
(4) The name of any other county in which the person hasapplied for a deduction under this chapter for that assessmentdate.
(5) The complete address and a brief description of any otherreal property for which the person has applied for a deductionunder this chapter for that assessment date.
As added by P.L.70-2008, SEC.1.
IC 6-1.1-12.6-4
Limitation of deduction to three residences; procedure forenforcement
Sec. 4. (a) Subject to section 8 of this chapter, a property owneris entitled to a deduction under this chapter for an assessment datefor not more than three (3) model residences in Indiana.
(b) The auditor of a county (referred to in this section as the "firstcounty") with whom a statement is filed under section 3 of thischapter shall immediately prepare and transmit a copy of thestatement to the auditor of any other county (referred to in thissection as the "second county") if the property owner that claims thededuction owns or is buying a model residence located in the secondcounty.
(c) The county auditor of the second county shall note on the copyof the statement whether the property owner has claimed a deductionfor the current year under section 3 of this chapter for a modelresidence located in the second county. The county auditor shall thenreturn the copy of the statement to the auditor of the first county.
As added by P.L.70-2008, SEC.1.
IC 6-1.1-12.6-5
Deduction inapplicable in allocation area
Sec. 5. A property owner may not receive a deduction under thischapter with respect to a model residence located in an allocationarea (as defined in IC 6-1.1-21.2-3).
As added by P.L.70-2008, SEC.1.
IC 6-1.1-12.6-6
Prohibition against application of the deduction and a deductionunder another statute
Sec. 6. A property owner that qualifies for a deduction for a yearunder this chapter and another statute with respect to the same model
residence may not receive a deduction under both statutes for themodel residence for that year.
As added by P.L.70-2008, SEC.1.
IC 6-1.1-12.6-7
Application of the deduction on change of ownership
Sec. 7. (a) If ownership of the model residence changes:
(1) a new owner that continues to use the property as a modelresidence may claim the deduction under this chapter; and
(2) the deduction may not be applied for an assessment dateother than the assessment dates to which the deduction couldhave applied under section 2 of this chapter if ownership hadnot changed.
(b) A person who owns a model residence and claims a deductionunder this chapter shall provide to the county auditor a notice that:
(1) informs the auditor of a transfer of the ownership of themodel residence; and
(2) indicates whether the new owner is eligible to receive adeduction under this chapter.
The notice required by this subsection must be submitted to thecounty auditor at the same time that a sales disclosure form is filedunder IC 6-1.1-5.5.
As added by P.L.70-2008, SEC.1.
IC 6-1.1-12.6-8
Affiliated group limited to three deductions
Sec. 8. The aggregate number of deductions claimed under thischapter for a particular assessment date by the owners of modelresidences who are a part of an affiliated group may not exceed three(3).
As added by P.L.70-2008, SEC.1.
IC 6-1.1-12.6-9
Adoption of rules by the department of local government finance
Sec. 9. The department of local government finance shall adoptrules under IC 4-22-2 to implement this chapter.
As added by P.L.70-2008, SEC.1.