§ 6-1.1-12-18 — Deduction for rehabilitated residential real property; limitations; expiration

Indiana § 6-1.1-12-18

• Jurisdiction: Indiana
• Art. 1.1: PROPERTY TAXES
• Ch. 12: Assessed Value Deductions and Deduction Procedures

Text

(a) This section applies only to:
(1) rehabilitation of residential real property that occurs before
January 2, 2017; and
(2) property taxes imposed for an assessment date before January
1, 2025.
(b) If the assessed value of residential real property described in
subsection (e) 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 (excluding an increase in assessed value that occurs
after January 1, 2017); 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, or if subsection (f) applies, the period established under
subsection (f).
(c) 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.
(d) 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.
(e) The deduction provided by this section applies only:
(1) for the rehabilitation of residential real property which is
located within this state and which is described in one (1) of the
following classifications:
(A) 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).
(B) 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).
(C) 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; and
(2) if the property owner:
(A) owns the residential real property; or
(B) is buying the residential real property under contract;
on the assessment date of the year in which an application must
be filed under section 20 of this chapter.
(f) A county, city, or town fiscal body may adopt an ordinance to
establish a deduction period that is longer than five (5) years but not to
exceed fifteen (15) years for any rehabilitated property covered by this
section that has also been determined to be abandoned or vacant for
purposes of IC 6-1.1-24.
(g) This section expires January 1, 2027.
[Pre-1975 Property Tax Recodification Citations:
6-1-10.1-1; 6-1-10.1-3.]
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;
P.L.144-2008, SEC.25; P.L.247-2015, SEC.3; P.L.181-2016, SEC.4;
P.L.68-2025, SEC.32.