Real property or mobile or manufactured home; persons over 65;
surviving spouse
Sec. 9. (a) An individual may obtain a deduction from the
assessed value of the individual's real property, or mobile home or
manufactured home which is not assessed as real property, if:
(1) the individual is at least sixty-five (65) years of age on or
before December 31 of the calendar year preceding the year in
which the deduction is claimed;
(2) the combined adjusted gross income (as defined in Section
62 of the Internal Revenue Code) of:
(A) the individual and the individual's spouse; or
(B) the individual and all other individuals with whom:
(i) the individual shares ownership; or
(ii) the individual is purchasing the property under a
contract;
as joint tenants or tenants in common;
for the calendar year preceding the year in which the deduction
is claimed did not exceed twenty-five thousand dollars
($25,000);
(3) the individual has owned the real property, mobile home, or
manufactured home for at least one (1) year before claiming the
deduction; or the individual has been buying the real property,
mobile home, or manufactured home under a contract that
provides that the individual is to pay the property taxes on the
real property, mobile home, or manufactured home for at least
one (1) year before claiming the deduction, and the contract or
a memorandum of the contract is recorded in the county
recorder's office;
(4) the individual and any individuals covered by subdivision
(2)(B) reside on the real property, mobile home, or
manufactured home;
(5) the assessed value of the real property, mobile home, or
manufactured home does not exceed one hundred forty-four
thousand dollars ($144,000); and
(6) the individual receives no other property tax deduction for
the year in which the deduction is claimed, except the
deductions provided by sections 1, 37, and 38 of this chapter.
(b) Except as provided in subsection (h), in the case of real
property, an individual's deduction under this section equals the
lesser of:
(1) one-half (1/2) of the assessed value of the real property; or
(2) twelve thousand four hundred eighty dollars ($12,480).
(c) Except as provided in subsection (h) and section 40.5 of this
chapter, in the case of a mobile home that is not assessed as real
property or a manufactured home which is not assessed as real
property, an individual's deduction under this section equals the
lesser of:
(1) one-half (1/2) of the assessed value of the mobile home or
manufactured home; or
(2) twelve thousand four hundred eighty dollars ($12,480).
(d) An individual may not be denied the deduction provided under
this section because the individual is absent from the real property,
mobile home, or manufactured home while in a nursing home or
hospital.
(e) For purposes of this section, if real property, a mobile home,
or a manufactured home is owned by:
(1) tenants by the entirety;
(2) joint tenants; or
(3) tenants in common;
only one (1) deduction may be allowed. However, the age
requirement is satisfied if any one (1) of the tenants is at least
sixty-five (65) years of age.
(f) A surviving spouse is entitled to the deduction provided by this
section if:
(1) the surviving spouse is at least sixty (60) years of age on or
before December 31 of the calendar year preceding the year in
which the deduction is claimed;
(2) the surviving spouse's deceased husband or wife was at least
sixty-five (65) years of age at the time of a death;
(3) the surviving spouse has not remarried; and
(4) the surviving spouse satisfies the requirements prescribed in
subsection (a)(2) through (a)(6).
(g) An individual who has sold real property to another person
under a contract that provides that the contract buyer is to pay the
property taxes on the real property may not claim the deduction
provided under this section against that real property.
(h) In the case of tenants covered by subsection (a)(2)(B), if all of
the tenants are not at least sixty-five (65) years of age, the deduction
allowed under this section shall be reduced by an amount equal to the
deduction multiplied by a fraction. The numerator of the fraction is
the number of tenants who are not at least sixty-five (65) years of
age, and the denominator is the total number of tenants.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1978,
P.L.33, SEC.1; Acts 1979, P.L.54, SEC.1; Acts 1980, P.L.39, SEC.9;
Acts 1981, P.L.25, SEC.3; Acts 1982, P.L.45, SEC.1; P.L.24-1986,
SEC.14; P.L.60-1986, SEC.1; P.L.332-1989(ss), SEC.6;
P.L.41-1992, SEC.1; P.L.48-1996, SEC.1; P.L.6-1997, SEC.46;
P.L.155-1999, SEC.1; P.L.291-2001, SEC.131; P.L.272-2003,
SEC.1; P.L.20-2004, SEC.1.
Last modified: May 28, 2006