Senate Bill No. 234 Summary

• Establishes a tax credit for homestead property that caps annual property tax increases at 5% per year, effective January 1, 2012.

• Property tax increases attributable to improvements or expansions of the homestead property are excluded from the 5% cap calculation.

• Applies to property taxes imposed for assessment dates after January 15, 2011, and allows taxpayers to claim the credit for property taxes first due and payable on a homestead.

• If a taxpayer qualifies for both this credit and the credit under section 8.5, the section 8.5 credit takes precedence and this credit does not apply.

• Amends Indiana Code 6-1.1-20.6 to define property tax liability for purposes of the new homestead property tax credit.