HB 1223 Summary

• Defines "qualified installment contract" as a contract for purchase of real property or mobile/manufactured home that is recorded with the county recorder, requires the buyer to pay property taxes, specifies total price and payment schedule, and provides for deed transfer upon full payment.

• Replaces lengthy contract requirement language throughout Indiana tax code (IC 6-1.1-12) with single reference to "qualified installment contract" definition, streamlining deduction eligibility across multiple property tax deduction sections.

• Allows property tax deduction eligibility for buyers under qualified installment contracts for standard homestead deductions, senior citizen deductions, disabled person deductions, and veteran deductions.

• Establishes civil liability for property owners who misrepresent residential leases as qualified installment contracts and cause buyers to improperly claim deductions; liable parties must pay additional taxes plus 10% civil penalty.

• Effective July 1, 2011.