Information Maintained by the Office of Code Revision Indiana Legislative Services Agency
 08/30/2008 10:18:43 AM EDT
IC 6-1.1-20.9 Version a
     Chapter 20.9. Homestead Credit
    Note: This version of chapter effective until 1-1-2009. See also following repeal of this chapter, effective 1-1-2009.

IC 6-1.1-20.9-1 Version a
Definitions
     Note: This version of section effective until 1-1-2009. See also following repeal of this chapter, effective 1-1-2009.
    Sec. 1. As used in this chapter:
        (1) "Dwelling" means any of the following:
            (A) Residential real property improvements which an individual uses as his residence, including a house or garage.
            (B) A mobile home that is not assessed as real property that an individual uses as the individual's residence.
            (C) A manufactured home that is not assessed as real property that an individual uses as the individual's residence.
        (2) "Homestead" means an individual's principal place of residence which:
            (A) is located in Indiana;
            (B) the individual:
                (i) owns;
                (ii) is buying under a contract, recorded in the county recorder's office, that provides that the individual is to pay the property taxes on the residence; or
                (iii) is entitled to occupy as a tenant-stockholder (as defined in 26 U.S.C. 216) of a cooperative housing corporation (as defined in 26 U.S.C. 216); and
            (C) consists of a dwelling and the real estate, not exceeding one (1) acre, that immediately surrounds that dwelling.
As added by Acts 1979, P.L.60, SEC.1. Amended by P.L.1-1993, SEC.32; P.L.291-2001, SEC.144; P.L.146-2008, SEC.229.

IC 6-1.1-20.9-2 Version a
Homestead credit; limitations; county auditor and county assessor duties; trust property
     Note: This version of section amended by P.L.144-2008, SEC.40, effective until 1-1-2009. See also following version of this section amended by P.L.101-2008, SEC.3, effective until 1-1-2009, and following repeal of this chapter, effective 1-1-2009.
    Sec. 2. (a) Except as otherwise provided in section 5 of this chapter, an individual who in a particular year either owns or is buying a homestead under a contract that provides the individual is to pay the property taxes on the homestead is entitled each calendar year to a credit against the property taxes which the individual pays on the individual's homestead. However, only one (1) individual may receive a credit under this chapter for a particular homestead in a particular year. With respect to real property or a mobile home or a manufactured home that is not assessed as real property, the individual must:

        (1) own the real property, mobile home, or manufactured home; or
        (2) be buying the real property, mobile home, or manufactured home under contract;
on the date the statement is filed under section 3 or 3.5 of this chapter.
    (b) The amount of the credit to which the individual is entitled equals the product of:
        (1) the percentage prescribed in subsection (d); multiplied by
        (2) the amount of the individual's property tax liability, as that term is defined in IC 6-1.1-21-5, which is:
            (A) attributable to the homestead during the particular calendar year; and
            (B) determined after the application of the property tax replacement credit under IC 6-1.1-21.
    (c) For purposes of determining that part of an individual's property tax liability that is attributable to the individual's homestead, all deductions from assessed valuation which the individual claims under IC 6-1.1-12 or IC 6-1.1-12.1 for property on which the individual's homestead is located must be applied first against the assessed value of the individual's homestead before those deductions are applied against any other property.
    (d) The percentage of the credit referred to in subsection (b)(1) is as follows:
    YEAR    PERCENTAGE
        OF THE CREDIT
    1996    8%
    1997    6%
    1998 through 2002    10%
    2003 through 2005    20%
    2006    28%
    2007 and thereafter    20%
However, the percentage credit allowed in a particular county for a particular year shall be increased if on January 1 of a year an ordinance adopted by a county income tax council was in effect in the county which increased the homestead credit. The amount of the increase equals the amount designated in the ordinance.
    (e) Before October 1 of each year, the county assessor shall furnish to the county auditor the amount of the assessed valuation of each homestead for which a homestead credit has been properly filed under section 3 or 3.5 of this chapter. The county assessor shall update the information not later than December 31 of that year.
    (f) The county auditor shall apply the credit equally to each installment of taxes that the individual pays for the property.
    (g) Notwithstanding the provisions of this chapter, a taxpayer other than an individual is entitled to the credit provided by this chapter if:
        (1) an individual uses the residence as the individual's principal place of residence;
        (2) the residence is located in Indiana;
        (3) the individual has a beneficial interest in the taxpayer;
        (4) the taxpayer either owns the residence or is buying it under a contract, recorded in the county recorder's office, that provides that the individual is to pay the property taxes on the residence; and
        (5) the residence consists of a single-family dwelling and the real estate, not exceeding one (1) acre, that immediately surrounds that dwelling.
As added by Acts 1979, P.L.60, SEC.1. Amended by P.L.44-1984, SEC.5; P.L.332-1989(ss), SEC.12; P.L.26-1996, SEC.6; P.L.57-1997, SEC.1; P.L.291-2001, SEC.125; P.L.192-2002(ss), SEC.38; P.L.246-2005, SEC.63; P.L.162-2006, SEC.14; P.L.224-2007, SEC.39; P.L.144-2008, SEC.40.

IC 6-1.1-20.9-2 Version b
Homestead credit; amount; eligibility
     Note: This version of section amended by P.L.101-2008, SEC.3, effective until 1-1-2009. See also preceding version of this section amended by P.L.144-2008, SEC.40, effective until 1-1-2009, and following repeal of this chapter, effective 1-1-2009.
    Sec. 2. (a) Except as otherwise provided in section 5 of this chapter, an individual who on March 1 of a particular year either owns or is buying a homestead under a contract that provides the individual is to pay the property taxes on the homestead is entitled each calendar year to a credit against the property taxes which the individual pays on the individual's homestead. However, only one (1) individual may receive a credit under this chapter for a particular homestead in a particular year.
    (b) The amount of the credit to which the individual is entitled equals the product of:
        (1) the percentage prescribed in subsection (d); multiplied by
        (2) the amount of the individual's property tax liability, as that term is defined in IC 6-1.1-21-5, which is:
            (A) attributable to the homestead during the particular calendar year; and
            (B) determined after the application of the property tax replacement credit under IC 6-1.1-21.
    (c) For purposes of determining that part of an individual's property tax liability that is attributable to the individual's homestead, all deductions from assessed valuation which the individual claims under IC 6-1.1-12 or IC 6-1.1-12.1 for property on which the individual's homestead is located must be applied first against the assessed value of the individual's homestead before those deductions are applied against any other property.
    (d) The percentage of the credit referred to in subsection (b)(1) is as follows:
    YEAR    PERCENTAGE
        OF THE CREDIT
    1996    8%
    1997    6%

    1998 through 2002    10%
    2003 through 2005    20%
    2006    28%
    2007 and thereafter    20%
However, the percentage credit allowed in a particular county for a particular year shall be increased if on January 1 of a year an ordinance adopted by a county income tax council was in effect in the county which increased the homestead credit. The amount of the increase equals the amount designated in the ordinance.
    (e) Before October 1 of each year, the assessor shall furnish to the county auditor the amount of the assessed valuation of each homestead for which a homestead credit has been properly filed under this chapter.
    (f) The county auditor shall apply the credit equally to each installment of taxes that the individual pays for the property.
    (g) Notwithstanding the provisions of this chapter, a taxpayer other than an individual is entitled to the credit provided by this chapter if:
        (1) an individual uses the residence as the individual's principal place of residence;
        (2) the residence is located in Indiana;
        (3) the individual:
            (A) has a beneficial interest in the taxpayer; or
            (B) has the right to occupy the residence rent free under the terms of a qualified personal residence trust created by the individual under United States Treasury Regulation 25.2702-5(c)(2);
        (4) the taxpayer either owns the residence or is buying it under a contract, recorded in the county recorder's office, that provides that the individual is to pay the property taxes on the residence; and
        (5) the residence consists of a single-family dwelling and the real estate, not exceeding one (1) acre, that immediately surrounds that dwelling.
As added by Acts 1979, P.L.60, SEC.1. Amended by P.L.44-1984, SEC.5; P.L.332-1989(ss), SEC.12; P.L.26-1996, SEC.6; P.L.57-1997, SEC.1; P.L.291-2001, SEC.125; P.L.192-2002(ss), SEC.38; P.L.246-2005, SEC.63; P.L.162-2006, SEC.14; P.L.224-2007, SEC.39; P.L.101-2008, SEC.3.

IC 6-1.1-20.9-3 Version a
Claim for homestead credit; notice to county auditor of change of use of property; joint ownership
     Note: This version of section effective until 1-1-2009. See also following repeal of this chapter, effective 1-1-2009.
    Sec. 3. (a) Except as provided in section 3.5 of this chapter and subject to section 7 of this chapter, an individual who desires to claim the credit provided by section 2 of this chapter 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 homestead is located. The statement shall include the parcel number or key number of the real estate and the name of the city, town, or township in which the real estate is located. With respect to real property, the statement must be filed during the year prior to the first year for which the person wishes to obtain the credit for the homestead. 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 statement must be filed during the twelve (12) months before March 31 of the first year for which the individual wishes to obtain the credit. The statement 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 applies for that first year and any succeeding year for which the credit is allowed.
    (b) The certified statement referred to in subsection (a) shall contain the name of any other county and township in which the individual owns or is buying real property.
    (c) If an individual who is receiving the credit provided by this chapter changes the use of the individual's real property, so that part or all of that real property no longer qualifies for the homestead credit provided by this chapter, the individual must file a certified statement with the auditor of the county, notifying the auditor of the change of use within sixty (60) days after the date of that change. An individual who changes the use of the individual's real property and fails to file the statement required by this subsection is liable for the amount of the credit the individual was allowed under this chapter for that real property.
    (d) An individual who receives the credit provided by section 2 of this chapter for property that is jointly held with another owner in a particular year and remains eligible for the credit in the following year is not required to file a statement to reapply for the credit following the removal of the joint owner if:
        (1) the individual is the sole owner of the property following the death of the individual's spouse;
        (2) the individual is the sole owner of the property following the death of a joint owner who was not the individual's spouse; or
        (3) the individual is awarded sole ownership of property in a divorce decree.
As added by Acts 1979, P.L.60, SEC.1. Amended by P.L.73-1987, SEC.3; P.L.55-1988, SEC.9; P.L.125-1999, SEC.2; P.L.90-2002, SEC.198; P.L.177-2002, SEC.8; P.L.154-2006, SEC.50; P.L.183-2007, SEC.10; P.L.144-2008, SEC.41.

IC 6-1.1-20.9-3.5 Version a
Sales disclosure form serves as application for homestead credit; limitations
     Note: This version of section effective until 1-1-2009. See also following repeal of this chapter, effective 1-1-2009.
    Sec. 3.5. (a) A sales disclosure form under IC 6-1.1-5.5:
        (1) that is submitted:
            (A) as a paper form; or

            (B) electronically;
        on or before December 31 of a calendar year to the county assessor by or on behalf of the purchaser of a homestead assessed as real property;
        (2) that is accurate and complete;
        (3) that is approved by the county assessor as eligible for filing with the county auditor; and
        (4) that is filed:
            (A) as a paper form; or
            (B) electronically;
        with the county auditor by or on behalf of the purchaser;
constitutes an application for the credit provided by section 2 of this chapter with respect to property taxes first due and payable in the calendar year that immediately succeeds the calendar year referred to in subdivision (1).
    (b) Except as provided in subsection (c), if:
        (1) the county auditor receives in a calendar year a sales disclosure form that meets the requirements of subsection (a); and
        (2) the homestead for which the sales disclosure form is submitted is otherwise eligible for the credit under this chapter;
the county auditor shall apply the credit under this chapter to the homestead for property taxes first due and payable in the calendar year for which the homestead qualifies under subsection (a) and in any later year in which the homestead remains eligible for the credit.
    (c) Subsection (b) does not apply if the county auditor, after receiving a sales disclosure form from or on behalf of a purchaser under subsection (a)(4), determines that the homestead is ineligible for the credit under this chapter.
As added by P.L.144-2008, SEC.42.

IC 6-1.1-20.9-4 Version a
Transmittal of credit statement to other county if individual owns or is buying in other county; return with notation to original county
     Note: This version of section effective until 1-1-2009. See also following repeal of this chapter, effective 1-1-2009.
    Sec. 4. (a) The auditor of a county (referred to in this section as the "first county") with whom:
        (1) a credit statement is filed under section 3 of this chapter; or
        (2) a sales disclosure form is filed under section 3.5 of this chapter;
shall immediately prepare and transmit a copy of the statement or form to the auditor of any other county (referred to in this section as the "second county") if the individual who claims the credit or files the form owns or is buying real property located in the second county.
    (b) The county auditor of the second county shall note on the copy of the statement or form whether or not the individual has claimed the credit for the current year for a homestead located in the second

county. The auditor shall then return the copy to the auditor of the first county.
As added by Acts 1979, P.L.60, SEC.1. Amended by P.L.144-2008, SEC.43.

IC 6-1.1-20.9-5 Version a
County auditor procedures to prevent multiple credits on same property
     Note: This version of section effective until 1-1-2009. See also following repeal of this chapter, effective 1-1-2009.
    Sec. 5. (a) Each year, the county auditor shall:
        (1) place the original copies of all credit statements filed under section 3 of this chapter and all sales disclosure forms filed under section 3.5 of this chapter in alphabetical order by townships; and
        (2) without regard to townships, place any duplicate copies for the entire county in alphabetical order.
    (b) The auditor shall ascertain from the alphabetical files whether or not more than one (1) statement or sales disclosure form has been filed by the same individual.
    (c) The county auditor may not grant an individual a credit under section 2 of this chapter if:
        (1) the individual, for the same year, claims the credit:
            (A) on two (2) or more different statements;
            (B) by submitting two (2) or more different sales disclosure forms; or
            (C) through any combination of statements and sales disclosure forms; and
        (2) as a result the credit is claimed for more than one (1) homestead.
As added by Acts 1979, P.L.60, SEC.1. Amended by P.L.144-2008, SEC.44.

IC 6-1.1-20.9-6 Version a
Certification of amount of assessed valuation qualifying for and amount of homestead credits
     Note: This version of section effective until 1-1-2009. See also following repeal of this chapter, effective 1-1-2009.
    Sec. 6. Before April 1 of each year prior to the year in which the credit is allowed, the auditor of each county shall certify to the department of local government finance the amount of the assessed valuation which qualifies for the homestead credit. Before February 1 of each year, the auditor of each county shall certify to the department of local government finance the amount of homestead credits allowed in that county for that calendar year.
As added by Acts 1979, P.L.60, SEC.1. Amended by P.L.49-1996, SEC.5; P.L.90-2002, SEC.199.

IC 6-1.1-20.9-7 Version a
Automatic carryover of homestead credit; limitations; specification

of year to which homestead credit claim applies
     Note: This version of section effective until 1-1-2009. See also following repeal of this chapter, effective 1-1-2009.
    Sec. 7. (a) Subject to subsections (b) and (c), a credit under this chapter applies for the property taxes due and payable based on the assessment for an assessment date, regardless of whether with respect to the real property or mobile home or manufactured home not assessed as real property:
        (1) the title is conveyed one (1) or more times; or
        (2) one (1) or more contracts to purchase are entered into;
after that assessment date and on or before the next succeeding assessment date.
    (b) Subsection (a) applies:
        (1) only if the title holder or the contract buyer on that next succeeding assessment date is eligible for the credit for property taxes due and payable based on the assessment for that next succeeding assessment date; and
        (2) regardless of whether:
            (A) one (1) or more grantees of title under subsection (a)(1); or
            (B) one (1) or more contract purchasers under subsection (a)(2);
files a statement under this chapter to claim the credit.
    (c) A credit applies under subsection (a) for only one (1) year. The requirements of this chapter for filing a statement to apply for a credit under this chapter apply to subsequent years.
    (d) If a person files a statement in a calendar year to claim a credit under this chapter with respect to real property, the credit applies for the property taxes due and payable in the immediately succeeding calendar year.
    (e) If a person files a statement in a twelve (12) month filing period designated under this chapter to claim a credit under this chapter with respect to a mobile home or a manufactured home not assessed as real property, the credit applies to the property taxes due and payable in the immediately succeeding twelve (12) month period.
As added by P.L.144-2008, SEC.45.

IC 6-1.1-20.9 Version c
Repealed
    (Repealed by P.L.146-2008, SEC.813.)
    Note: This repeal of chapter effective 1-1-2009. See also preceding sections of this chapter, effective until 1-1-2009.

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