(a) Except as provided in subsection (c) and except as provided in section 40.5 of this chapter, an individual may have the sum of fourteen thousand dollars ($14,000) 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) 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 either:

   1. (A) has a total disability; or
   2. (B) is at least sixty-two (62) years old and has a disability of at least ten percent (10%);

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; and

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.

(b) Except as provided in subsections (c) and (d), the surviving spouse of an individual may receive the deduction provided by this section if:

1. (1) the individual satisfied the requirements of subsection (a)(1) through (a)(4) at the time of death; or

2. (2) the individual:

   1. (A) was killed in action;
   2. (B) died while serving on active duty in the military or naval forces of the United States; or

   3. (C) died while performing inactive duty training in the military or naval forces of the United States; 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.

(d) Except as provided in subsection (f), for the:

1. (1) January 1, 2017, January 1, 2018, and January 1, 2019, assessment dates, the assessed value limit for purposes of subsection (c) is one hundred seventy-five thousand dollars ($175,000);
2. (2) January 1, 2020, January 1, 2021, January 1, 2022, and January 1, 2023, assessment dates, the assessed value limit for purposes of subsection (c) is two hundred thousand dollars ($200,000); and
3. (3) January 1, 2024, assessment date and for each assessment date thereafter, the assessed value limit for purposes of subsection (c) is two hundred forty thousand dollars ($240,000).

(f) For purposes of determining the assessed value of the real property, mobile home, or manufactured home under subsection (d) for an individual who has received a deduction under this section in a previous year, increases in assessed value that occur after the later of:

1. (1) December 31, 2019; or

2. (2) the first year that the individual has received the deduction;

   are not considered unless the increase in assessed value is attributable to substantial renovation or new improvements. Where there is an increase in assessed value for purposes of the deduction under this section, the assessor shall provide a report to the county auditor describing the substantial renovation or new improvements, if any, that were made to the property prior to the increase in assessed value.

   [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.