Ind. Code § 6-1.1-12-14 – Deduction for totally disabled veteran; surviving spouse; contract purchaser

(a) Except as provided in section 40.5 of this chapter, an individual may have one hundred percent (100%) of the assessed value deducted from the assessed value of the real property, mobile home not assessed as real property, or manufactured home not assessed as real property that the individual owns (or the real property, mobile home not assessed as real property, or manufactured home not assessed as real property that the individual is buying under a contract that provides that the individual is to pay property taxes on the real property, mobile home, or manufactured home if the contract or a memorandum of the contract is recorded in the county recorder's office) and uses as the individual's principal place of residence if:
1. (1) the individual served in the military or naval forces of the United States for at least ninety (90) days;
2. (2) the individual received an honorable discharge;
3. (3) the individual has a total disability;
4. (4) the individual's disability is evidenced by:
  1. (A) a pension certificate or an award of compensation issued by the United States Department of Veterans Affairs; or
  2. (B) a certificate of eligibility issued to the individual by the Indiana department of veterans' affairs after the Indiana department of veterans' affairs has determined that the individual's disability qualifies the individual to receive a deduction under this section;
5. (5) the individual:
  1. (A) owns the real property, mobile home, or manufactured home; or
  2. (B) is buying the real property, mobile home, or manufactured home under contract;
    on the date the statement required by section 15 of this chapter is filed; and
6. (6) the individual has resided in Indiana for at least one (1) year before the assessment date for which the deduction under this section is claimed.
(b) The surviving spouse of an individual may receive the deduction provided by this section if the individual satisfied the requirements of subsection (a)(1) through (a)(4) at the time of death and the surviving spouse satisfies the requirement of subsection (a)(5) at the time the deduction statement is filed. The surviving spouse is entitled to the deduction regardless of whether the property for which the deduction is claimed was owned by the deceased veteran or the surviving spouse before the deceased veteran's death. However, a surviving spouse is no longer eligible for the deduction under this section if the surviving spouse subsequently remarries.
(c) An individual who has sold real property, a mobile home not assessed as real property, or a manufactured home not assessed as real property to another person under a contract that provides that the contract buyer is to pay the property taxes on the real property, mobile home, or manufactured home may not claim the deduction provided under this section against that real property, mobile home, or manufactured home.
(d) Beginning with taxes assessed in 2026 and due and payable in 2027, an individual who receives a deduction under this section may not receive a local property tax credit under IC 6-1.1-51.3 .
[Pre-1975 Property Tax Recodification Citation: 6-1-7-1 part.]
Formerly: Acts 1975, P.L.47, SEC.1; Acts 1975, P.L.21, SEC.6. As amended by Acts 1982, P.L.45, SEC.6; P.L.68-1983, SEC.2; P.L.60-1985, SEC.2; P.L.332-1989(ss), SEC.8; P.L.1-1990, SEC.69; P.L.48-1996, SEC.3; P.L.6-1997, SEC.49; P.L.123-1999, SEC.3; P.L.291-2001, SEC.136; P.L.272-2003, SEC.2; P.L.20-2004, SEC.4; P.L.219-2007, SEC.26; P.L.99-2007, SEC.24; P.L.144-2008, SEC.18; P.L.3-2008, SEC.35; P.L.1-2009, SEC.30; P.L.293-2013(ts), SEC.2; P.L.100-2016, SEC.1; P.L.114-2019, SEC.2; P.L.159-2020, SEC.17; P.L.174-2022, SEC.20; P.L.136-2024, SEC.8; P.L.68-2025, SEC.25; P.L.230-2025, SEC.32; P.L.157-2026, SEC.47.