Mortgage or contract deductions; eligibility; amount deducted
Sec. 1. (a) Each year a person who is a resident of this state may
receive a deduction from the assessed value of:
(1) mortgaged real property, an installment loan financed
mobile home that is not assessed as real property, or an
installment loan financed manufactured home that is not
assessed as real property that he owns; or
(2) real property, a mobile home that is not assessed as real
property, or a manufactured home that is not assessed as real
property that he is buying under a contract, with the contract or
a memorandum of the contract recorded in the county recorder's
office, which provides that he is to pay the property taxes on the
real property, mobile home, or manufactured home.
(b) Except as provided in section 40.5 of this chapter, the total
amount of the deduction which the person may receive under this
section for a particular year is:
(1) the balance of the mortgage or contract indebtedness on the
assessment date of that year;
(2) one-half (1/2) of the assessed value of the real property,
mobile home, or manufactured home; or
(3) three thousand dollars ($3,000);
whichever is least.
(c) A person who has sold real property, a mobile home not
assessed as real property, or a manufactured home not assessed as
real property to another person under a contract which provides that
the contract buyer is to pay the property taxes on the real property,
mobile home, or manufactured home may not claim the deduction
provided under this section with respect to that real property, mobile
home, or manufactured home.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1980,
P.L.39, SEC.1; Acts 1981, P.L.69, SEC.1; P.L.6-1997, SEC.41;
P.L.291-2001, SEC.129.
Last modified: May 28, 2006