5.
(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
Free access — add to your briefcase to read the full text and ask questions with AI
5. (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 sixty thousand dollars ($60,000),
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 seventy thousand dollars ($70,000), 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, and before January 1, 2025, 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
(before its expiration). 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.