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IN SB0368

IN SB0368
Homestead exemption for persons at least age 65.


summary

Introduced
01/13/2025
In Committee
01/13/2025
Crossed Over
Passed
Dead
04/24/2025

Introduced Session

2025 Regular Session

Bill Summary

Homestead exemption for persons at least age 65. Eliminates property taxes on primary residences for those who are at least 65 years of age (qualified homesteads) beginning with the assessment date on January 1 of the year that immediately succeeds the year in which the balance in the pension stabilization fund is sufficient to pay the liabilities of the pre-1996 account without the need for further appropriation by the general assembly. Requires the Indiana public retirement system to determine whether the balance of the pension stabilization fund is sufficient to pay the liabilities of the pre-1996 account without the need for an appropriation by the general assembly and certify the determination to the budget committee on or before March 1, 2026, and on or before March 1 of each odd-numbered year thereafter. Provides an annual state distribution to offset the property tax elimination for qualified homesteads based on the amount of property taxes that otherwise would be due on the qualified homesteads. Makes an ongoing appropriation.

AI Summary

This bill creates a property tax exemption for homeowners who are at least 65 years old, which will take effect on the assessment date following the year when the pension stabilization fund has sufficient balance to cover pre-1996 account liabilities without further legislative appropriation. A "qualified homestead" includes primary residences owned by or being purchased by individuals aged 65 or older. The bill eliminates property tax liability for these qualified homesteads, including any taxes from voter-approved referendums. To receive the exemption, homeowners must already qualify for the standard homestead deduction and apply through a similar process. The Indiana Public Retirement System will determine the pension fund's sufficiency every two years, starting in 2026. To offset the lost property tax revenue, the state will provide annual distributions to counties based on the property taxes that would have been collected from these exempt properties. These distributions will be made in two equal installments each year in May and November, and will be treated as property tax revenue for budgeting purposes. The state general fund is automatically appropriated to cover these replacement distributions.

Committee Categories

Budget and Finance

Sponsors (1)

Last Action

First reading: referred to Committee on Tax and Fiscal Policy (on 01/13/2025)

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