Rehabilitated residential property; prerequisites for deduction
Sec. 18. (a) If the assessed value of residential real property
described in subsection (d) is increased because it has been
rehabilitated, the owner may have deducted from the assessed value
of the property an amount not to exceed the lesser of:
(1) the total increase in assessed value resulting from the
rehabilitation; or
(2) eighteen thousand seven hundred twenty dollars ($18,720)
per rehabilitated dwelling unit.
The owner is entitled to this deduction annually for a five (5) year
period.
(b) For purposes of this section, the term "rehabilitation" means
significant repairs, replacements, or improvements to an existing
structure which are intended to increase the livability, utility, safety,
or value of the property under rules adopted by the department of
local government finance.
(c) For the purposes of this section, the term "owner" or "property
owner" includes any person who has the legal obligation, or has
otherwise assumed the obligation, to pay the real property taxes on
the rehabilitated property.
(d) The deduction provided by this section applies only for the
rehabilitation of residential real property which is located within this
state and which is described in one (1) of the following
classifications:
(1) a single family dwelling if before rehabilitation the assessed
value (excluding any exemptions or deductions) of the
improvements does not exceed thirty-seven thousand four
hundred forty dollars ($37,440);
(2) a two (2) family dwelling if before rehabilitation the
assessed value (excluding exemptions or deductions) of the
improvements does not exceed forty-nine thousand nine
hundred twenty dollars ($49,920); and
(3) a dwelling with more than two (2) family units if before
rehabilitation the assessed value (excluding any exemptions or
deductions) of the improvements does not exceed eighteen
thousand seven hundred twenty dollars ($18,720) per dwelling
unit.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1977,
P.L.2, SEC.21; Acts 1977, P.L.67, SEC.1; P.L.6-1997, SEC.52;
P.L.129-2001, SEC.2; P.L.90-2002, SEC.110; P.L.20-2004, SEC.7.
Last modified: May 28, 2006