§ 6-1.1-12-9 — Deduction for person 65 or older; limitations; cost of living adjustment; surviving spouse; contract purchaser; common ownership

Indiana § 6-1.1-12-9

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

Text

(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) for assessment dates before January 1, 2020, 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) for assessment dates after December 31, 2019:
(A) the individual had, 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;
(B) the individual had, 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; or
(C) the combined adjusted gross income (as defined in Section
62 of the Internal Revenue Code) of 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 did not exceed 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 the property taxes are first due and payable;
(4) 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;
(5) for assessment dates:
(A) before January 1, 2020, the individual and any individuals
covered by subdivision (2)(B) reside on the real property,
mobile home, or manufactured home; or
(B) after December 31, 2019, the individual and any individuals
covered by subdivision (3)(C) reside on the real property,
mobile home, or manufactured home;
(6) except as provided in subsection (i), the assessed value of the
real property, mobile home, or manufactured home does not
exceed two hundred forty thousand dollars ($240,000);
(7) the individual receives no other property tax deduction for the
year in which the deduction is claimed, except the deductions
provided by sections 37, (for assessment dates after February 28,
2008) 37.5, and 38 of this chapter; and
(8) the person:
(A) owns the real property, mobile home, or manufactured
home; or
(B) is buying the real property, mobile home, or manufactured
home under contract;
on the date the statement required by section 10.1 of this chapter
is filed.
For purposes of applying the annual cost of living increases described
in subdivision (3)(A) through (3)(C), the annual percentage increase is
applied to the adjusted amount of income from the immediately
preceding year.
(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) fourteen thousand dollars ($14,000).
(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) fourteen thousand dollars ($14,000).
(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)(8).
(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) or
(a)(3)(C), 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.
(i) For purposes of determining the assessed value of the real
property, mobile home, or manufactured home under subsection (a)(6)
for an individual who has received a deduction under this section in a
previous year, increases in assessed value that occur after the later of:
(1) December 31, 2019; or
(2) the first year that the individual has received the deduction;
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 deduction 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.
(j) This section applies only to property taxes imposed for an
assessment date before January 1, 2025.
(k) This section expires January 1, 2027.
[Pre-1975 Property Tax Recodification Citation:
6-1-4-1.]
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; P.L.219-2007, SEC.25; P.L.144-2008, SEC.13; P.L.1-2010,
SEC.22; P.L.113-2010, SEC.23; P.L.114-2019, SEC.1; P.L.159-2020,
SEC.16; P.L.174-2022, SEC.19; P.L.239-2023, SEC.1; P.L.68-2025,
SEC.20.