CHAPTER 20.6. CREDIT FOR EXCESSIVE RESIDENTIAL PROPERTY TAXES
IC 6-1.1-20.6
Chapter 20.6. Credit for Excessive Residential Property Taxes
IC 6-1.1-20.6-0.5
"Agricultural land"
Sec. 0.5. As used in this chapter, "agricultural land" refers to landassessed as agricultural land under the real property assessment rulesand guidelines of the department of local government finance.
As added by P.L.146-2008, SEC.213.
IC 6-1.1-20.6-1
Repealed
(Repealed by P.L.146-2008, SEC.811.)
IC 6-1.1-20.6-1.6
"Gross assessed value"
Sec. 1.6. As used in this chapter, "gross assessed value" refers tothe assessed value of property after the application of all exemptionsunder IC 6-1.1-10 or any other provision.
As added by P.L.146-2008, SEC.214.
IC 6-1.1-20.6-2
"Homestead"
Sec. 2. (a) As used in this chapter, "homestead" refers to ahomestead that is eligible for a standard deduction underIC 6-1.1-12-37.
(b) The term includes a house or apartment that is owned orleased by a cooperative housing corporation (as defined in 26 U.S.C.216(b)).
As added by P.L.246-2005, SEC.62. Amended by P.L.146-2008,SEC.215; P.L.182-2009(ss), SEC.151.
IC 6-1.1-20.6-2.3
"Long term care property"
Sec. 2.3. As used in this chapter, "long term care property" meansproperty that:
(1) is used for the long term care of an impaired individual; and
(2) is one (1) of the following:
(A) A health facility licensed under IC 16-28.
(B) A housing with services establishment (as defined inIC 12-10-15-3) that is allowed to use the term "assistedliving" to describe the housing with services establishment'sservices and operations to the public.
(C) An independent living home that, under contractualagreement, serves not more than eight (8) individuals who:
(i) have a mental illness or developmental disability;
(ii) require regular but limited supervision; and
(iii) reside independently of their families.
As added by P.L.146-2008, SEC.216.
IC 6-1.1-20.6-2.4
"Manufactured home"; "mobile home"
Sec. 2.4. As used in this chapter:
(1) "manufactured home" has the meaning set forth inIC 22-12-1-16; and
(2) "mobile home" has the meaning set forth in IC 16-41-27-4.
As added by P.L.146-2008, SEC.217.
IC 6-1.1-20.6-2.5
"Nonresidential real property"
Sec. 2.5. (a) As used in this chapter, "nonresidential real property"refers to either of the following:
(1) Real property that:
(A) is not:
(i) a homestead; or
(ii) residential property; and
(B) consists of:
(i) a building or other land improvement; and
(ii) the land, not exceeding the area of the buildingfootprint or improvement footprint, on which the buildingor improvement is located.
(2) Undeveloped land in the amount of the remainder of:
(A) the area of a parcel; minus
(B) the area of the parcel that is part of:
(i) a homestead; or
(ii) residential property.
(b) The term does not include agricultural land.
As added by P.L.146-2008, SEC.218.
IC 6-1.1-20.6-3
"Property tax liability"
Sec. 3. As used in this chapter, "property tax liability" means, forpurposes of:
(1) this chapter, other than section 8.5 of this chapter, liabilityfor the tax imposed on property under this article determinedafter application of all credits and deductions under this articleor IC 6-3.5, except the credit under this chapter, but does notinclude any interest or penalty imposed under this article; and
(2) section 8.5 of this chapter, liability for the tax imposed onproperty under this article determined after application of allcredits and deductions under this article or IC 6-3.5, includingthe credit granted by section 7 or 7.5 of this chapter, but notincluding the credit granted under section 8.5 of this chapter orany interest or penalty imposed under this article.
As added by P.L.246-2005, SEC.62. Amended by P.L.146-2008,SEC.219.
IC 6-1.1-20.6-3.5
Repealed
(Repealed by P.L.182-2009(ss), SEC.465.)
IC 6-1.1-20.6-4
"Residential property"
Sec. 4. As used in this chapter, "residential property" refers to realproperty that consists of any of the following:
(1) A single family dwelling that is not part of a homestead andthe land, not exceeding one (1) acre, on which the dwelling islocated.
(2) Real property that consists of:
(A) a building that includes two (2) or more dwelling units;
(B) any common areas shared by the dwelling units; and
(C) the land, not exceeding the area of the building footprint,on which the building is located.
(3) Land rented or leased for the placement of a manufacturedhome or mobile home, including any common areas shared bythe manufactured homes or mobile homes.
As added by P.L.246-2005, SEC.62. Amended by P.L.162-2006,SEC.7; P.L.146-2008, SEC.221; P.L.131-2008, SEC.4.
IC 6-1.1-20.6-5
Repealed
(Repealed by P.L.146-2008, SEC.811.)
IC 6-1.1-20.6-6
Repealed
(Repealed by P.L.146-2008, SEC.811.)
IC 6-1.1-20.6-6.5
Repealed
(Repealed by P.L.146-2008, SEC.811.)
IC 6-1.1-20.6-7
Calculation of credit
Sec. 7. (a) This subsection applies to property taxes first due andpayable in 2009. A person is entitled to a credit against the person'sproperty tax liability for property taxes first due and payable in 2009.The amount of the credit is the amount by which the person'sproperty tax liability attributable to the person's:
(1) homestead exceeds one and five-tenths percent (1.5%);
(2) residential property exceeds two and five-tenths percent(2.5%);
(3) long term care property exceeds two and five-tenths percent(2.5%);
(4) agricultural land exceeds two and five-tenths percent(2.5%);
(5) nonresidential real property exceeds three and five-tenthspercent (3.5%); or
(6) personal property exceeds three and five-tenths percent(3.5%);
of the gross assessed value of the property that is the basis fordetermination of property taxes for that calendar year. (b) This subsection applies to property taxes first due and payablein 2009. Property taxes imposed after being approved by the votersin a referendum or local public question shall not be considered forpurposes of calculating a person's credit under this section.
(c) This subsection applies to property taxes first due and payablein 2009. As used in this subsection, "eligible county" means only acounty for which the general assembly determines in 2008 that limitsto property tax liability under this chapter are expected to reduce in2010 the aggregate property tax revenue that would otherwise becollected by all units of local government and school corporations inthe county by at least twenty percent (20%). Property taxes imposedin an eligible county to pay debt service or make lease payments forbonds or leases issued or entered into before July 1, 2008, shall notbe considered for purposes of calculating a person's credit under thissection.
As added by P.L.246-2005, SEC.62. Amended by P.L.162-2006,SEC.10; P.L.224-2007, SEC.38; P.L.146-2008, SEC.222;P.L.1-2010, SEC.30.
IC 6-1.1-20.6-7.5
Calculation of credit
Sec. 7.5. (a) A person is entitled to a credit against the person'sproperty tax liability for property taxes first due and payable after2009. The amount of the credit is the amount by which the person'sproperty tax liability attributable to the person's:
(1) homestead exceeds one percent (1%);
(2) residential property exceeds two percent (2%);
(3) long term care property exceeds two percent (2%);
(4) agricultural land exceeds two percent (2%);
(5) nonresidential real property exceeds three percent (3%); or
(6) personal property exceeds three percent (3%);
of the gross assessed value of the property that is the basis fordetermination of property taxes for that calendar year.
(b) This subsection applies to property taxes first due and payableafter 2009. Property taxes imposed after being approved by thevoters in a referendum or local public question shall not beconsidered for purposes of calculating a person's credit under thissection.
(c) This subsection applies to property taxes first due and payableafter 2009. As used in this subsection, "eligible county" means onlya county for which the general assembly determines in 2008 thatlimits to property tax liability under this chapter are expected toreduce in 2010 the aggregate property tax revenue that wouldotherwise be collected by all units of local government and schoolcorporations in the county by at least twenty percent (20%). Propertytaxes imposed in an eligible county to pay debt service or make leasepayments for bonds or leases issued or entered into before July 1,2008, shall not be considered for purposes of calculating a person'scredit under this section.
As added by P.L.146-2008, SEC.223.
IC 6-1.1-20.6-8
Exemption from filing requirement
Sec. 8. Except as provided in section 8.5 of this chapter, a personis not required to file an application for the credit under this chapter.The county auditor shall:
(1) identify the property in the county eligible for the creditunder this chapter; and
(2) apply the credit under this chapter to property tax liabilityon the identified property.
As added by P.L.246-2005, SEC.62. Amended by P.L.162-2006,SEC.11; P.L.146-2008, SEC.224.
IC 6-1.1-20.6-8.5
Additional credit for certain homesteads; eligibility and filingrequirements
Sec. 8.5. (a) This section applies to an individual who:
(1) qualified for a standard deduction granted underIC 6-1.1-12-37 for the individual's homestead property in theimmediately preceding calendar year (or was married at thetime of death to a deceased spouse who qualified for a standarddeduction granted under IC 6-1.1-12-37 for the individual'shomestead property in the immediately preceding calendaryear);
(2) qualifies for a standard deduction granted underIC 6-1.1-12-37 for the same homestead property in the currentcalendar year;
(3) is or will be at least sixty-five (65) years of age on or beforeDecember 31 of the calendar year immediately preceding thecurrent calendar year; and
(4) had:
(A) in the case of an individual who filed a single return,adjusted gross income (as defined in Section 62 of theInternal Revenue Code) not exceeding thirty thousanddollars ($30,000); or
(B) in the case of an individual who filed a joint income taxreturn with the individual's spouse, combined adjusted grossincome (as defined in Section 62 of the Internal RevenueCode) not exceeding forty thousand dollars ($40,000);
for the calendar year preceding by two (2) years the calendaryear in which property taxes are first due and payable.
(b) This section does not apply if the gross assessed value of thehomestead on the assessment date for which property taxes areimposed is at least one hundred sixty thousand dollars ($160,000).
(c) An individual is entitled to an additional credit under thissection for property taxes first due and payable for a calendar year ona homestead if:
(1) the individual and the homestead qualify for the credit undersubsection (a) for the calendar year;
(2) the homestead is not disqualified for the credit undersubsection (b) for the calendar year; and (3) the filing requirements under subsection (e) are met.
(d) The amount of the credit is equal to the greater of zero (0) orthe result of:
(1) the property tax liability first due and payable on thehomestead property for the calendar year; minus
(2) the result of:
(A) the property tax liability first due and payable on thequalified homestead property for the immediately precedingyear after the application of the credit granted under thissection for that year; multiplied by
(B) one and two hundredths (1.02).
However, property tax liability imposed on any improvements to orexpansion of the homestead property after the assessment date forwhich property tax liability described in subdivision (2) was imposedshall not be considered in determining the credit granted under thissection in the current calendar year.
(e) Applications for a credit under this section shall be filed in themanner provided for an application for a deduction underIC 6-1.1-12-9. However, an individual who remains eligible for thecredit in the following year is not required to file a statement to applyfor the credit in the following year. An individual who receives acredit under this section in a particular year and who becomesineligible for the credit in the following year shall notify the auditorof the county in which the homestead is located of the individual'sineligibility not later than sixty (60) days after the individualbecomes ineligible.
(f) The auditor of each county shall, in a particular year, apply acredit provided under this section to each individual who receivedthe credit in the preceding year unless the auditor determines that theindividual is no longer eligible for the credit.
As added by P.L.146-2008, SEC.225. Amended by P.L.182-2009(ss),SEC.152; P.L.113-2010, SEC.38.
IC 6-1.1-20.6-9
Repealed
(Repealed by P.L.146-2008, SEC.810.)
IC 6-1.1-20.6-9.5
Effect of credit on revenues
Sec. 9.5. (a) This section applies only to credits under this chapteragainst property taxes first due and payable after December 31, 2006.
(b) The application of the credit under this chapter results in areduction of the property tax collections of each political subdivisionin which the credit is applied. A political subdivision may notincrease its property tax levy to make up for that reduction.
(c) The county auditor shall in each calendar year notify eachpolitical subdivision in which the credit under this chapter is appliedof the reduction of property tax collections referred to in subsection(b) for the political subdivision for that year.
(d) A political subdivision may not borrow money to compensate
the political subdivision or any other political subdivision for thereduction of property tax collections referred to in subsection (b).
As added by P.L.162-2006, SEC.13.
IC 6-1.1-20.6-10
Payment of debt service obligations
Sec. 10. (a) As used in this section, "debt service obligations of apolitical subdivision" refers to:
(1) the principal and interest payable during a calendar year onbonds; and
(2) lease rental payments payable during a calendar year onleases;
of a political subdivision payable from ad valorem property taxes.
(b) Political subdivisions are required by law to fully fund thepayment of their debt obligations in an amount sufficient to pay anydebt service or lease rentals on outstanding obligations, regardless ofany reduction in property tax collections due to the application of taxcredits granted under this chapter. Any reduction in collections mustbe applied to the other funds of the political subdivision after debtservice or lease rentals have been fully funded.
(c) Upon the failure of a political subdivision to pay any of thepolitical subdivision's debt service obligations during a calendar yearwhen due, the treasurer of state, upon being notified of the failure bya claimant, shall pay the unpaid debt service obligations that are duefrom money in the possession of the state that would otherwise beavailable for distribution to the political subdivision under any otherlaw, deducting the payment from the amount distributed. Adeduction under this subsection must be made:
(1) first from distributions of county adjusted gross income taxdistributions under IC 6-3.5-1.1, county option income taxdistributions under IC 6-3.5-6, or county economic developmentincome tax distributions under IC 6-3.5-7 that would otherwisebe distributed to the county under the schedule inIC 6-3.5-1.1-10, IC 6-3.5-1.1-21.1, IC 6-3.5-6-16,IC 6-3.5-6-17.3, IC 6-3.5-7-17, and IC 6-3.5-7-17.3; and
(2) second from any other undistributed funds of the politicalsubdivision in the possession of the state.
(d) This section shall be interpreted liberally so that the state shallto the extent legally valid ensure that the debt service obligations ofeach political subdivision are paid when due. However, this sectiondoes not create a debt of the state.
As added by P.L.146-2008, SEC.226.
IC 6-1.1-20.6-11
Certification of credits granted
Sec. 11. The county auditor of each county shall certify to thedepartment of local government finance:
(1) the total amount of credits that are allowed under thischapter in the county for the calendar year; and
(2) the amount that each taxing unit's distribution of property
taxes will be reduced under section 9.5 of this chapter as aresult of the granting of the credits.
If the amount of credits granted changes after the date thecertification is made, the county auditor shall submit an amendedcertification to the department of local government finance. Theinitial certification and the amended certifications shall be submittedto the department of local government finance on the scheduleprescribed by the department of local government finance.
As added by P.L.146-2008, SEC.227.
IC 6-1.1-20.6-12
Application of credit of excise tax distribution calculations
Sec. 12. For purposes of computing and distributing after 2008any excise taxes or local option income taxes for which thedistribution is based on the amount of a taxing unit's property taxlevy, the computation and distribution of the excise tax or localoption income tax shall be based on the taxing unit's property taxlevy as calculated before any reduction due to credits provided totaxpayers under this chapter.
As added by P.L.146-2008, SEC.228.