SB 173 Summary

• Establishes a 100% property tax deduction on assessed value of new homes (newly constructed or previously unoccupied residences in Indiana) for owners who enter into construction/purchase and financing contracts between July 1, 2011 and June 30, 2012.

• Deduction period is five years by default, but city, town, or county legislative bodies may adopt resolutions by July 1, 2011 to reduce the period to three or four years based on assessed value or other criteria.

• Property owners must apply to their county auditor using forms prescribed by the Department of Local Government Finance, with applications due by May 10 of the year the assessed value is added, or within 30 days of receiving assessment notice if later.

• Deduction terminates upon change of ownership, except when a surviving joint owner becomes sole owner through death of a spouse or co-owner, or through divorce decree.

• Department of Local Government Finance shall adopt rules to implement the chapter, including emergency rules if necessary.