SB 162 Summary

• Establishes a 100% property tax deduction on the assessed value of new homes (newly constructed or previously unoccupied residences) in Indiana.

• Deduction applies only to homes where construction or purchase contracts are entered into after June 30, 2010, and before July 1, 2011.

• Deduction period is five years by default, but cities, towns, or counties may adopt resolutions by July 1, 2010, to reduce the period to three or four years based on assessed value or other criteria.

• Property owners must apply to the county auditor on forms prescribed by the Department of Local Government Finance, with applications due by May 10 of the year the property is assessed (or within 30 days of notice if received after April 10).

• Deduction terminates upon change of ownership, except when ownership transfers to a surviving spouse, surviving joint owner, or individual awarded sole ownership in a divorce decree.