Indiana lawmakers are considering a measure that would give homeowners the option of collecting property taxes on their homes for as long as they are in the state.
The proposal would go into effect in January.
The Indiana House passed the bill by a vote of 21-1 on Wednesday.
The bill would make it a felony for a home owner to not pay a property tax, and a third-degree felony for an owner to have a delinquent property tax bill.
This type of felony could lead to up to five years in prison.
In the past, Indiana has used a law called the “non-payment provision” to help keep property taxes low.
The law allows property owners to pay a maximum of $1,000 in non-payment taxes per year, and it is up to the property owner to collect that amount.
However, this bill would allow for a homeowner to keep the payment amount for as many years as the property is in the State of Indiana.
It also allows a homeowner who owes a tax to have the non-tax amount forgiven after the property has been sold.
This bill would require that the property be “furnished with suitable furnishings and facilities,” but it does not address how the tax money would be spent.
“The bill is a step forward toward helping taxpayers with their property taxes by providing the opportunity to take advantage of a state program that provides an alternative method of payment that allows the state to keep its own property tax bills low while also allowing taxpayers to avoid paying the property taxes for years to come,” House Speaker Joe Donnelly, D-Indiana, said in a statement.
Indiana’s previous property tax relief legislation expired in 2019.
If passed, this new measure would go to the Indiana Senate for consideration.