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 land
assessed as agricultural land under the real property assessment rules
and 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Repealed
(Repealed by P.L.146-2008, SEC.811.)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 to
the assessed value of property after the application of all exemptions
under 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 a
homestead that is eligible for a standard deduction under
IC 6-1.1-12-37.
(b) The term includes a house or apartment that is owned or
leased 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" means
property 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 in
IC 12-10-15-3) that is allowed to use the term "assisted
living" to describe the housing with services establishment's
services and operations to the public.
(C) An independent living home that, under contractual
agreement, 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 in
IC 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 building
footprint or improvement footprint, on which the building
or 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, for
purposes of:
(1) this chapter, other than section 8.5 of this chapter, liability
for the tax imposed on property under this article determined
after application of all credits and deductions under this article
or IC 6-3.5, except the credit under this chapter, but does not
include any interest or penalty imposed under this article; and
(2) section 8.5 of this chapter, liability for the tax imposed on
property under this article determined after application of all
credits and deductions under this article or IC 6-3.5, including
the credit granted by section 7 or 7.5 of this chapter, but not
including the credit granted under section 8.5 of this chapter or
any 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 real
property that consists of any of the following:
(1) A single family dwelling that is not part of a homestead and
the land, not exceeding one (1) acre, on which the dwelling is
located.
(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 manufactured
home or mobile home, including any common areas shared by
the 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 and
payable in 2009. A person is entitled to a credit against the person's
property tax liability for property taxes first due and payable in 2009.
The amount of the credit is the amount by which the person's
property 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-tenths
percent (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 for
determination of property taxes for that calendar year.
(b) This subsection applies to property taxes first due and payable
in 2009. Property taxes imposed after being approved by the voters
in a referendum or local public question shall not be considered for
purposes of calculating a person's credit under this section.
(c) This subsection applies to property taxes first due and payable
in 2009. As used in this subsection, "eligible county" means only a
county for which the general assembly determines in 2008 that limits
to property tax liability under this chapter are expected to reduce in
2010 the aggregate property tax revenue that would otherwise be
collected by all units of local government and school corporations in
the county by at least twenty percent (20%). Property taxes imposed
in an eligible county to pay debt service or make lease payments for
bonds or leases issued or entered into before July 1, 2008, shall not
be considered for purposes of calculating a person's credit under this
section. 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's
property tax liability for property taxes first due and payable after
2009. The amount of the credit is the amount by which the person's
property 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 for
determination of property taxes for that calendar year.
(b) This subsection applies to property taxes first due and payable
after 2009. Property taxes imposed after being approved by the
voters in a referendum or local public question shall not be
considered for purposes of calculating a person's credit under this
section.
(c) This subsection applies to property taxes first due and payable
after 2009. As used in this subsection, "eligible county" means only
a county for which the general assembly determines in 2008 that
limits to property tax liability under this chapter are expected to
reduce in 2010 the aggregate property tax revenue that would
otherwise be collected by all units of local government and school
corporations in the county by at least twenty percent (20%). Property
taxes imposed in an eligible county to pay debt service or make lease
payments for bonds or leases issued or entered into before July 1,
2008, shall not be considered for purposes of calculating a person's
credit 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 person
is 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 credit
under this chapter; and
(2) apply the credit under this chapter to property tax liability
on 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 filing
requirements
Sec. 8.5. (a) This section applies to an individual who:
(1) qualified for a standard deduction granted under
IC 6-1.1-12-37 for the individual's homestead property in the
immediately preceding calendar year (or was married at the
time of death to a deceased spouse who qualified for a standard
deduction granted under IC 6-1.1-12-37 for the individual's
homestead property in the immediately preceding calendar
year);
(2) qualifies for a standard deduction granted under
IC 6-1.1-12-37 for the same homestead property in the current
calendar year;
(3) is or will be at least sixty-five (65) years of age on or before
December 31 of the calendar year immediately preceding the
current 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 the
Internal Revenue Code) not exceeding thirty thousand
dollars ($30,000); or
(B) in the case of an individual who filed a joint income tax
return with the individual's spouse, combined adjusted gross
income (as defined in Section 62 of the Internal Revenue
Code) not exceeding forty thousand dollars ($40,000);
for the calendar year preceding by two (2) years the calendar
year in which property taxes are first due and payable.
(b) This section does not apply if the gross assessed value of the
homestead on the assessment date for which property taxes are
imposed is at least one hundred sixty thousand dollars ($160,000).
(c) An individual is entitled to an additional credit under this
section for property taxes first due and payable for a calendar year on
a homestead if:
(1) the individual and the homestead qualify for the credit under
subsection (a) for the calendar year;
(2) the homestead is not disqualified for the credit under
subsection (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) or
the result of:
(1) the property tax liability first due and payable on the
homestead property for the calendar year; minus
(2) the result of:
(A) the property tax liability first due and payable on the
qualified homestead property for the immediately preceding
year after the application of the credit granted under this
section for that year; multiplied by
(B) one and two hundredths (1.02).
However, property tax liability imposed on any improvements to or
expansion of the homestead property after the assessment date for
which property tax liability described in subdivision (2) was imposed
shall not be considered in determining the credit granted under this
section in the current calendar year.
(e) Applications for a credit under this section shall be filed in the
manner provided for an application for a deduction under
IC 6-1.1-12-9. However, an individual who remains eligible for the
credit in the following year is not required to file a statement to apply
for the credit in the following year. An individual who receives a
credit under this section in a particular year and who becomes
ineligible for the credit in the following year shall notify the auditor
of the county in which the homestead is located of the individual's
ineligibility not later than sixty (60) days after the individual
becomes ineligible.
(f) The auditor of each county shall, in a particular year, apply a
credit provided under this section to each individual who received
the credit in the preceding year unless the auditor determines that the
individual 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 chapter
against property taxes first due and payable after December 31, 2006.
(b) 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.
(c) The county auditor shall in each calendar year notify each
political subdivision in which the credit under this chapter is applied
of 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 the
reduction 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 a
political subdivision" refers to:
(1) the principal and interest payable during a calendar year on
bonds; and
(2) lease rental payments payable during a calendar year on
leases;
of a political subdivision payable from ad valorem property taxes.
(b) Political subdivisions are required by law to fully fund the
payment of their debt obligations in an amount sufficient to pay any
debt service or lease rentals on outstanding obligations, regardless of
any reduction in property tax collections due to the application of tax
credits granted under this chapter. Any reduction in collections must
be applied to the other funds of the political subdivision after debt
service or lease rentals have been fully funded.
(c) Upon the failure of a political subdivision to pay any of the
political subdivision's debt service obligations during a calendar year
when due, the treasurer of state, upon being notified of the failure by
a claimant, shall pay the unpaid debt service obligations that are due
from money in the possession of the state that would otherwise be
available for distribution to the political subdivision under any other
law, deducting the payment from the amount distributed. A
deduction under this subsection must be made:
(1) first from distributions of county adjusted gross income tax
distributions under IC 6-3.5-1.1, county option income tax
distributions under IC 6-3.5-6, or county economic development
income tax distributions under IC 6-3.5-7 that would otherwise
be distributed to the county under the schedule in
IC 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 political
subdivision in the possession of the state.
(d) This section shall be interpreted liberally so that the state shall
to the extent legally valid ensure that the debt service obligations of
each political subdivision are paid when due. However, this section
does 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 the
department of local government finance:
(1) the total amount of credits that are allowed under this
chapter 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 a
result of the granting of the credits.
If the amount of credits granted changes after the date the
certification is made, the county auditor shall submit an amended
certification to the department of local government finance. The
initial certification and the amended certifications shall be submitted
to the department of local government finance on the schedule
prescribed 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 2008
any excise taxes or local option income taxes for which the
distribution is based on the amount of a taxing unit's property tax
levy, the computation and distribution of the excise tax or local
option income tax shall be based on the taxing unit's property tax
levy as calculated before any reduction due to credits provided to
taxpayers under this chapter. As added by P.L.146-2008, SEC.228.
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 land
assessed as agricultural land under the real property assessment rules
and 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 to
the assessed value of property after the application of all exemptions
under 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 a
homestead that is eligible for a standard deduction under
IC 6-1.1-12-37.
(b) The term includes a house or apartment that is owned or
leased 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" means
property 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 in
IC 12-10-15-3) that is allowed to use the term "assisted
living" to describe the housing with services establishment's
services and operations to the public.
(C) An independent living home that, under contractual
agreement, 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 in
IC 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 building
footprint or improvement footprint, on which the building
or 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, for
purposes of:
(1) this chapter, other than section 8.5 of this chapter, liability
for the tax imposed on property under this article determined
after application of all credits and deductions under this article
or IC 6-3.5, except the credit under this chapter, but does not
include any interest or penalty imposed under this article; and
(2) section 8.5 of this chapter, liability for the tax imposed on
property under this article determined after application of all
credits and deductions under this article or IC 6-3.5, including
the credit granted by section 7 or 7.5 of this chapter, but not
including the credit granted under section 8.5 of this chapter or
any 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 real
property that consists of any of the following:
(1) A single family dwelling that is not part of a homestead and
the land, not exceeding one (1) acre, on which the dwelling is
located.
(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 manufactured
home or mobile home, including any common areas shared by
the 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 and
payable in 2009. A person is entitled to a credit against the person's
property tax liability for property taxes first due and payable in 2009.
The amount of the credit is the amount by which the person's
property 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-tenths
percent (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 for
determination of property taxes for that calendar year.
(b) This subsection applies to property taxes first due and payable
in 2009. Property taxes imposed after being approved by the voters
in a referendum or local public question shall not be considered for
purposes of calculating a person's credit under this section.
(c) This subsection applies to property taxes first due and payable
in 2009. As used in this subsection, "eligible county" means only a
county for which the general assembly determines in 2008 that limits
to property tax liability under this chapter are expected to reduce in
2010 the aggregate property tax revenue that would otherwise be
collected by all units of local government and school corporations in
the county by at least twenty percent (20%). Property taxes imposed
in an eligible county to pay debt service or make lease payments for
bonds or leases issued or entered into before July 1, 2008, shall not
be considered for purposes of calculating a person's credit under this
section. 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's
property tax liability for property taxes first due and payable after
2009. The amount of the credit is the amount by which the person's
property 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 for
determination of property taxes for that calendar year.
(b) This subsection applies to property taxes first due and payable
after 2009. Property taxes imposed after being approved by the
voters in a referendum or local public question shall not be
considered for purposes of calculating a person's credit under this
section.
(c) This subsection applies to property taxes first due and payable
after 2009. As used in this subsection, "eligible county" means only
a county for which the general assembly determines in 2008 that
limits to property tax liability under this chapter are expected to
reduce in 2010 the aggregate property tax revenue that would
otherwise be collected by all units of local government and school
corporations in the county by at least twenty percent (20%). Property
taxes imposed in an eligible county to pay debt service or make lease
payments for bonds or leases issued or entered into before July 1,
2008, shall not be considered for purposes of calculating a person's
credit 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 person
is 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 credit
under this chapter; and
(2) apply the credit under this chapter to property tax liability
on 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 filing
requirements
Sec. 8.5. (a) This section applies to an individual who:
(1) qualified for a standard deduction granted under
IC 6-1.1-12-37 for the individual's homestead property in the
immediately preceding calendar year (or was married at the
time of death to a deceased spouse who qualified for a standard
deduction granted under IC 6-1.1-12-37 for the individual's
homestead property in the immediately preceding calendar
year);
(2) qualifies for a standard deduction granted under
IC 6-1.1-12-37 for the same homestead property in the current
calendar year;
(3) is or will be at least sixty-five (65) years of age on or before
December 31 of the calendar year immediately preceding the
current 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 the
Internal Revenue Code) not exceeding thirty thousand
dollars ($30,000); or
(B) in the case of an individual who filed a joint income tax
return with the individual's spouse, combined adjusted gross
income (as defined in Section 62 of the Internal Revenue
Code) not exceeding forty thousand dollars ($40,000);
for the calendar year preceding by two (2) years the calendar
year in which property taxes are first due and payable.
(b) This section does not apply if the gross assessed value of the
homestead on the assessment date for which property taxes are
imposed is at least one hundred sixty thousand dollars ($160,000).
(c) An individual is entitled to an additional credit under this
section for property taxes first due and payable for a calendar year on
a homestead if:
(1) the individual and the homestead qualify for the credit under
subsection (a) for the calendar year;
(2) the homestead is not disqualified for the credit under
subsection (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) or
the result of:
(1) the property tax liability first due and payable on the
homestead property for the calendar year; minus
(2) the result of:
(A) the property tax liability first due and payable on the
qualified homestead property for the immediately preceding
year after the application of the credit granted under this
section for that year; multiplied by
(B) one and two hundredths (1.02).
However, property tax liability imposed on any improvements to or
expansion of the homestead property after the assessment date for
which property tax liability described in subdivision (2) was imposed
shall not be considered in determining the credit granted under this
section in the current calendar year.
(e) Applications for a credit under this section shall be filed in the
manner provided for an application for a deduction under
IC 6-1.1-12-9. However, an individual who remains eligible for the
credit in the following year is not required to file a statement to apply
for the credit in the following year. An individual who receives a
credit under this section in a particular year and who becomes
ineligible for the credit in the following year shall notify the auditor
of the county in which the homestead is located of the individual's
ineligibility not later than sixty (60) days after the individual
becomes ineligible.
(f) The auditor of each county shall, in a particular year, apply a
credit provided under this section to each individual who received
the credit in the preceding year unless the auditor determines that the
individual 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 chapter
against property taxes first due and payable after December 31, 2006.
(b) 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.
(c) The county auditor shall in each calendar year notify each
political subdivision in which the credit under this chapter is applied
of 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 the
reduction 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 a
political subdivision" refers to:
(1) the principal and interest payable during a calendar year on
bonds; and
(2) lease rental payments payable during a calendar year on
leases;
of a political subdivision payable from ad valorem property taxes.
(b) Political subdivisions are required by law to fully fund the
payment of their debt obligations in an amount sufficient to pay any
debt service or lease rentals on outstanding obligations, regardless of
any reduction in property tax collections due to the application of tax
credits granted under this chapter. Any reduction in collections must
be applied to the other funds of the political subdivision after debt
service or lease rentals have been fully funded.
(c) Upon the failure of a political subdivision to pay any of the
political subdivision's debt service obligations during a calendar year
when due, the treasurer of state, upon being notified of the failure by
a claimant, shall pay the unpaid debt service obligations that are due
from money in the possession of the state that would otherwise be
available for distribution to the political subdivision under any other
law, deducting the payment from the amount distributed. A
deduction under this subsection must be made:
(1) first from distributions of county adjusted gross income tax
distributions under IC 6-3.5-1.1, county option income tax
distributions under IC 6-3.5-6, or county economic development
income tax distributions under IC 6-3.5-7 that would otherwise
be distributed to the county under the schedule in
IC 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 political
subdivision in the possession of the state.
(d) This section shall be interpreted liberally so that the state shall
to the extent legally valid ensure that the debt service obligations of
each political subdivision are paid when due. However, this section
does 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 the
department of local government finance:
(1) the total amount of credits that are allowed under this
chapter 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 a
result of the granting of the credits.
If the amount of credits granted changes after the date the
certification is made, the county auditor shall submit an amended
certification to the department of local government finance. The
initial certification and the amended certifications shall be submitted
to the department of local government finance on the schedule
prescribed 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 2008
any excise taxes or local option income taxes for which the
distribution is based on the amount of a taxing unit's property tax
levy, the computation and distribution of the excise tax or local
option income tax shall be based on the taxing unit's property tax
levy as calculated before any reduction due to credits provided to
taxpayers under this chapter. As added by P.L.146-2008, SEC.228.
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 land
assessed as agricultural land under the real property assessment rules
and 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 to
the assessed value of property after the application of all exemptions
under 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 a
homestead that is eligible for a standard deduction under
IC 6-1.1-12-37.
(b) The term includes a house or apartment that is owned or
leased 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" means
property 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 in
IC 12-10-15-3) that is allowed to use the term "assisted
living" to describe the housing with services establishment's
services and operations to the public.
(C) An independent living home that, under contractual
agreement, 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 in
IC 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 building
footprint or improvement footprint, on which the building
or 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, for
purposes of:
(1) this chapter, other than section 8.5 of this chapter, liability
for the tax imposed on property under this article determined
after application of all credits and deductions under this article
or IC 6-3.5, except the credit under this chapter, but does not
include any interest or penalty imposed under this article; and
(2) section 8.5 of this chapter, liability for the tax imposed on
property under this article determined after application of all
credits and deductions under this article or IC 6-3.5, including
the credit granted by section 7 or 7.5 of this chapter, but not
including the credit granted under section 8.5 of this chapter or
any 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 real
property that consists of any of the following:
(1) A single family dwelling that is not part of a homestead and
the land, not exceeding one (1) acre, on which the dwelling is
located.
(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 manufactured
home or mobile home, including any common areas shared by
the 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 and
payable in 2009. A person is entitled to a credit against the person's
property tax liability for property taxes first due and payable in 2009.
The amount of the credit is the amount by which the person's
property 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-tenths
percent (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 for
determination of property taxes for that calendar year.
(b) This subsection applies to property taxes first due and payable
in 2009. Property taxes imposed after being approved by the voters
in a referendum or local public question shall not be considered for
purposes of calculating a person's credit under this section.
(c) This subsection applies to property taxes first due and payable
in 2009. As used in this subsection, "eligible county" means only a
county for which the general assembly determines in 2008 that limits
to property tax liability under this chapter are expected to reduce in
2010 the aggregate property tax revenue that would otherwise be
collected by all units of local government and school corporations in
the county by at least twenty percent (20%). Property taxes imposed
in an eligible county to pay debt service or make lease payments for
bonds or leases issued or entered into before July 1, 2008, shall not
be considered for purposes of calculating a person's credit under this
section. 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's
property tax liability for property taxes first due and payable after
2009. The amount of the credit is the amount by which the person's
property 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 for
determination of property taxes for that calendar year.
(b) This subsection applies to property taxes first due and payable
after 2009. Property taxes imposed after being approved by the
voters in a referendum or local public question shall not be
considered for purposes of calculating a person's credit under this
section.
(c) This subsection applies to property taxes first due and payable
after 2009. As used in this subsection, "eligible county" means only
a county for which the general assembly determines in 2008 that
limits to property tax liability under this chapter are expected to
reduce in 2010 the aggregate property tax revenue that would
otherwise be collected by all units of local government and school
corporations in the county by at least twenty percent (20%). Property
taxes imposed in an eligible county to pay debt service or make lease
payments for bonds or leases issued or entered into before July 1,
2008, shall not be considered for purposes of calculating a person's
credit 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 person
is 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 credit
under this chapter; and
(2) apply the credit under this chapter to property tax liability
on 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 filing
requirements
Sec. 8.5. (a) This section applies to an individual who:
(1) qualified for a standard deduction granted under
IC 6-1.1-12-37 for the individual's homestead property in the
immediately preceding calendar year (or was married at the
time of death to a deceased spouse who qualified for a standard
deduction granted under IC 6-1.1-12-37 for the individual's
homestead property in the immediately preceding calendar
year);
(2) qualifies for a standard deduction granted under
IC 6-1.1-12-37 for the same homestead property in the current
calendar year;
(3) is or will be at least sixty-five (65) years of age on or before
December 31 of the calendar year immediately preceding the
current 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 the
Internal Revenue Code) not exceeding thirty thousand
dollars ($30,000); or
(B) in the case of an individual who filed a joint income tax
return with the individual's spouse, combined adjusted gross
income (as defined in Section 62 of the Internal Revenue
Code) not exceeding forty thousand dollars ($40,000);
for the calendar year preceding by two (2) years the calendar
year in which property taxes are first due and payable.
(b) This section does not apply if the gross assessed value of the
homestead on the assessment date for which property taxes are
imposed is at least one hundred sixty thousand dollars ($160,000).
(c) An individual is entitled to an additional credit under this
section for property taxes first due and payable for a calendar year on
a homestead if:
(1) the individual and the homestead qualify for the credit under
subsection (a) for the calendar year;
(2) the homestead is not disqualified for the credit under
subsection (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) or
the result of:
(1) the property tax liability first due and payable on the
homestead property for the calendar year; minus
(2) the result of:
(A) the property tax liability first due and payable on the
qualified homestead property for the immediately preceding
year after the application of the credit granted under this
section for that year; multiplied by
(B) one and two hundredths (1.02).
However, property tax liability imposed on any improvements to or
expansion of the homestead property after the assessment date for
which property tax liability described in subdivision (2) was imposed
shall not be considered in determining the credit granted under this
section in the current calendar year.
(e) Applications for a credit under this section shall be filed in the
manner provided for an application for a deduction under
IC 6-1.1-12-9. However, an individual who remains eligible for the
credit in the following year is not required to file a statement to apply
for the credit in the following year. An individual who receives a
credit under this section in a particular year and who becomes
ineligible for the credit in the following year shall notify the auditor
of the county in which the homestead is located of the individual's
ineligibility not later than sixty (60) days after the individual
becomes ineligible.
(f) The auditor of each county shall, in a particular year, apply a
credit provided under this section to each individual who received
the credit in the preceding year unless the auditor determines that the
individual 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 chapter
against property taxes first due and payable after December 31, 2006.
(b) 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.
(c) The county auditor shall in each calendar year notify each
political subdivision in which the credit under this chapter is applied
of 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 the
reduction 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 a
political subdivision" refers to:
(1) the principal and interest payable during a calendar year on
bonds; and
(2) lease rental payments payable during a calendar year on
leases;
of a political subdivision payable from ad valorem property taxes.
(b) Political subdivisions are required by law to fully fund the
payment of their debt obligations in an amount sufficient to pay any
debt service or lease rentals on outstanding obligations, regardless of
any reduction in property tax collections due to the application of tax
credits granted under this chapter. Any reduction in collections must
be applied to the other funds of the political subdivision after debt
service or lease rentals have been fully funded.
(c) Upon the failure of a political subdivision to pay any of the
political subdivision's debt service obligations during a calendar year
when due, the treasurer of state, upon being notified of the failure by
a claimant, shall pay the unpaid debt service obligations that are due
from money in the possession of the state that would otherwise be
available for distribution to the political subdivision under any other
law, deducting the payment from the amount distributed. A
deduction under this subsection must be made:
(1) first from distributions of county adjusted gross income tax
distributions under IC 6-3.5-1.1, county option income tax
distributions under IC 6-3.5-6, or county economic development
income tax distributions under IC 6-3.5-7 that would otherwise
be distributed to the county under the schedule in
IC 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 political
subdivision in the possession of the state.
(d) This section shall be interpreted liberally so that the state shall
to the extent legally valid ensure that the debt service obligations of
each political subdivision are paid when due. However, this section
does 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 the
department of local government finance:
(1) the total amount of credits that are allowed under this
chapter 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 a
result of the granting of the credits.
If the amount of credits granted changes after the date the
certification is made, the county auditor shall submit an amended
certification to the department of local government finance. The
initial certification and the amended certifications shall be submitted
to the department of local government finance on the schedule
prescribed 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 2008
any excise taxes or local option income taxes for which the
distribution is based on the amount of a taxing unit's property tax
levy, the computation and distribution of the excise tax or local
option income tax shall be based on the taxing unit's property tax
levy as calculated before any reduction due to credits provided to
taxpayers under this chapter. As added by P.L.146-2008, SEC.228.
