Version a
Homestead credit; amount; eligibility
Note: This version of section effective until 1-1-2006. See also
following version of this section, effective 1-1-2006.
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 and thereafter 20%
However, the property tax replacement fund board established under
IC 6-1.1-21-10, in its sole discretion, may increase the percentage of
the credit provided in the schedule for any year, if the board feels
that the property tax replacement fund contains enough money for
the resulting increased distribution. If the board increases the
percentage of the credit provided in the schedule for any year, the
percentage of the credit for the immediately following year is the
percentage provided in the schedule for that particular year, unless
as provided in this subsection the board in its discretion increases the
percentage of the credit provided in the schedule for that particular
year. 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 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.
Last modified: May 28, 2006