Indiana § 6-3.6-6-3.1 Tax rate for funding property tax homestead credits; expiration January
1, 2028

Indiana Statutes

§ 6-3.6-6-3.1 — Tax rate for funding property tax homestead credits; expiration January 1, 2028

Indiana § 6-3.6-6-3.1

Art. 3.6LOCAL INCOME TAXES

Ch. 6Expenditure Rate

This text of Indiana § 6-3.6-6-3.1 (Tax rate for funding property tax homestead credits; expiration January 1, 2028) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 6-3.6-6-3.1 (2026).

Text

1.

(a)As used in this section, "homestead" has the meaning set forth in IC 6-1.1-12-37.

(b)A county fiscal body may adopt an ordinance to impose a tax rate for the purpose of funding property tax homestead credits to reduce the property tax liability of taxpayers who own homesteads that are:

(1)located in the county; and

(2)eligible for a credit under IC 6-1.1-20.6-7.5 that limits the taxpayer's property tax liability for the property to one percent (1%). Revenue collected from a tax rate imposed under this section may only be used to fund replacement of the county's property tax levy. Property taxes imposed due to a referendum in which a majority of the voters in the taxing unit imposing the property taxes approved the property taxes are not eligible for a credit under this section. (

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1. (a) As used in this section, "homestead" has
the meaning set forth in IC 6-1.1-12-37.
(b) A county fiscal body may adopt an ordinance to impose a tax
rate for the purpose of funding property tax homestead credits to reduce
the property tax liability of taxpayers who own homesteads that are:
(1) located in the county; and
(2) eligible for a credit under IC 6-1.1-20.6-7.5 that limits the
taxpayer's property tax liability for the property to one percent
(1%).
Revenue collected from a tax rate imposed under this section may only
be used to fund replacement of the county's property tax levy. Property
taxes imposed due to a referendum in which a majority of the voters in
the taxing unit imposing the property taxes approved the property taxes
are not eligible for a credit under this section.
(c) The tax rate must be in increments of one-hundredth of one
percent (0.01%) and may not exceed three-tenths of one percent
(0.3%).
(d) A tax imposed under this section shall be treated as property
taxes for all purposes. However, the department of local government
finance may not reduce:
(1) any taxing unit's maximum permissible property tax levy limit
under IC 6-1.1-18.5; or
(2) the approved property tax levy or rate for any fund;
by the amount of any credits granted under this chapter.
(e) The homestead credits shall be applied to the net property taxes
due on the homestead after the application of any credit granted under
IC 6-1.1, including any credit granted under IC 6-1.1-20.4 and IC 6-1.1-20.6.
(f) The property tax credits must be applied uniformly to provide a
homestead credit for homesteads in the county.
(g) The county auditor shall allocate the amount of revenue applied
as tax credits under this section to the taxing units that imposed the
eligible property taxes against which the credits are applied.
(h) The department of local government finance shall assist county
fiscal bodies and county auditors in calculating credit percentages and
amounts.
(i) Notwithstanding any provision to the contrary in this chapter, a
tax imposed under this section:
(1) may be imposed on the adjusted gross income of taxpayers
before January 1, 2028; and
(2) terminates and may not be imposed on the adjusted gross
income of taxpayers after December 31, 2027.
(j) This section expires January 1, 2028.