IN HB1078

Marion County city-county council may establish a neighborhood enhancement property tax relief program providing assessed value deductions for qualified homesteads in designated areas, with authority expanding to other counties, cities, and towns after 2021.

Qualified homesteads must have a gross assessed value of not more than $125,000, be located in a designated area, and be owned by a longtime owner-occupant who has owned and occupied the property as a principal residence for at least 10 consecutive annual assessment dates.

Designated areas must be long-established residential neighborhoods with deteriorated, vacant, or abandoned properties where values are expected to rise from refurbishing or new construction, contain at least 5 homesteads, and comprise no more than 5% of the city's total geographic territory.

The deduction calculation uses a three-step process comparing current assessed value against an enhancement base value increased by 3% annually, with deductions applying automatically without requiring owner applications unless local ordinance specifies additional requirements.

Individuals receiving the deduction who know they no longer qualify or change property use must notify the county auditor within 60 days or face a 10% civil penalty on additional taxes owed, with 1% of penalties transferred to the state for homestead property database maintenance.