IN HB1242

Requires individuals using cooperative housing corporation property as their principal residence to demonstrate substantial equity interest in the cooperative's shares (equal to or greater than the property's true tax value) to qualify for homestead deductions, effective for property taxes due after December 31, 2012

Establishes new requirements for "qualified installment contracts" after December 31, 2012, including that contracts must be enforceable, recorded with the county recorder, and contracts entered into after March 31, 2012 must specify the total contract price

Consolidates and standardizes provisions across multiple property tax deduction sections (mortgage, over-65, blind/disabled, veteran, and homestead deductions) to use the new "qualified installment contract" definition

Defines "eligible cooperative housing corporation" to exclude leasing or zero equity cooperatives for property taxes due after December 31, 2012

Removes duplicative language throughout the tax code that previously required contract buyers to pay property taxes and have contracts recorded, replacing with references to the new consolidated qualified installment contract definition