Section 6-1.1-20.6-8.5 - Additional credit for certain homesteads; eligibility and filing requirements; cost of living adjustment(a) This section applies to an individual who:(1) qualified for a standard deduction granted under IC 6-1.1-12-37 for the individual's homestead property in the immediately preceding calendar year (or was married at the time of death to a deceased spouse who qualified for a standard deduction granted under IC 6-1.1-12-37 for the individual's homestead property in the immediately preceding calendar year);(2) qualifies for a standard deduction granted under IC 6-1.1-12-37 for the same homestead property in the current calendar year;(3) is or will be at least sixty-five (65) years of age on or before December 31 of the calendar year immediately preceding the current calendar year; and(4) had:(A) in the case of an individual who filed a single return, adjusted gross income (as defined in Section 62 of the Internal Revenue Code) not exceeding thirty thousand dollars ($30,000), and beginning for the January 1, 2023, assessment date, and each assessment date thereafter, adjusted annually by an amount equal to the percentage cost of living increase applied for Social Security benefits for the immediately preceding calendar year; or(B) in the case of an individual who filed a joint income tax return with the individual's spouse, combined adjusted gross income (as defined in Section 62 of the Internal Revenue Code) not exceeding forty thousand dollars ($40,000), and beginning for the January 1, 2023, assessment date, and each assessment date thereafter, adjusted annually by an amount equal to the percentage cost of living increase applied for Social Security benefits for the immediately preceding calendar year; for the calendar year preceding by two (2) years the calendar year in which property taxes are first due and payable.
For purposes of applying the annual cost of living increases described in subdivision (4)(A) and (4)(B), the annual percentage increase is applied to the adjusted amount of income from the immediately preceding year.
(b) Except as provided in subsection (g), this section does not apply if:(1) for an individual who received a credit under this section before January 1, 2020, the gross assessed value of the homestead on the assessment date for which property taxes are imposed is at least two hundred thousand dollars ($200,000);(2) for an individual who initially applies for a credit under this section after December 31, 2019, and before January 1, 2023, the assessed value of the individual's Indiana real property is at least two hundred thousand dollars ($200,000); or(3) for an individual who initially applies for a credit under this section after December 31, 2022, the assessed value of the individual's Indiana real property is at least two hundred forty thousand dollars ($240,000).(c) An individual is entitled to an additional credit under this section for property taxes first due and payable for a calendar year on a homestead if: (1) the individual and the homestead qualify for the credit under subsection (a) for the calendar year;(2) the homestead is not disqualified for the credit under subsection (b) for the calendar year; and(3) the filing requirements under subsection (e) are met.(d) The amount of the credit is equal to the greater of zero (0) or the result of: (1) the property tax liability first due and payable on the homestead property for the calendar year; minus(2) the result of: (A) the property tax liability first due and payable on the qualified homestead property for the immediately preceding year after the application of the credit granted under this section for that year; multiplied by(B) one and two hundredths (1.02). However, property tax liability imposed on any improvements to or expansion of the homestead property after the assessment date for which property tax liability described in subdivision (2) was imposed shall not be considered in determining the credit granted under this section in the current calendar year.
(e) Applications for a credit under this section shall be filed in the manner provided for an application for a deduction under IC 6-1.1-12-9. However, an individual who remains eligible for the credit in the following year is not required to file a statement to apply for the credit in the following year. An individual who receives a credit under this section in a particular year and who becomes ineligible for the credit in the following year shall notify the auditor of the county in which the homestead is located of the individual's ineligibility not later than sixty (60) days after the individual becomes ineligible.(f) The auditor of each county shall, in a particular year, apply a credit provided under this section to each individual who received the credit in the preceding year unless the auditor determines that the individual is no longer eligible for the credit.(g) For purposes of determining the: (1) assessed value of the homestead on the assessment date for which property taxes are imposed under subsection (b)(1);(2) assessed value of the individual's Indiana real property under subsection (b)(2); or(3) assessed value of the individual's Indiana real property under subsection (b)(3); for an individual who has received a credit under this section in a previous year, increases in assessed value that occur after the later of December 31, 2019, or the first year that the individual has received the credit are not considered unless the increase in assessed value is attributable to substantial renovation or new improvements. Where there is an increase in assessed value for purposes of the credit under this section, the assessor shall provide a report to the county auditor describing the substantial renovation or new improvements, if any, that were made to the property prior to the increase in assessed value.
Amended by P.L. 239-2023,SEC. 12, eff. 1/1/2023, app. to assessment dates occurring after December 31, 2022, for property taxes first due and payable in 2024.Amended by P.L. 174-2022,SEC. 42, eff. 7/1/2022.Amended by P.L. 159-2020,SEC. 43, eff. 3/21/2020.Amended by P.L. 114-2019,SEC. 4, eff. 7/1/2019.As added by P.L. 146-2008, SEC.225. Amended by P.L. 182-2009 (ss), SEC.152; P.L. 113-2010, SEC.38.