House Bill 1056 Summary

• Local governmental units (county commissioners outside Marion County, county councils, city-county councils, city common councils, and town councils) may establish a neighborhood enhancement property tax relief program through ordinance or resolution.

• Eligible homesteads must have a gross assessed value of not more than $100,000, be located in designated distressed areas experiencing property value increases from renovation or new construction, and be owned by longtime owner-occupants (those who owned and occupied the homestead for at least the 10 annual assessment dates immediately preceding program implementation).

• The assessed value deduction applies only to the extent the homestead's assessed value increased by more than 3% from the previous year, calculated using a three-step formula that accounts for the enhancement base value and excludes additions to the property.

• Designated areas must include at least five homesteads and cannot comprise more than 5% of the local unit's geographic territory; local units may adopt additional requirements through ordinance but cannot consider owner income as a qualification factor.

• Property owners who no longer qualify must file a certified statement with the county auditor within 60 days and face a 10% civil penalty on additional taxes owed if they fail to notify; the effective date is July 1, 2017.