18.
The Board is a creation of the legislature and has only the powers conferred by
statute. Whetzel v. Dep’t of Local Gov’t Fin., 761 N.E.2d 904, 908 (Ind. Tax
Ct. 2001) (citing Matonovich v. State Bd. of Tax Comm’rs, 705 N.E.2d 1093, 1096
(Ind. Tax Ct. 1999)). By statute, the Board conducts an impartial review of all
appeals concerning the assessed valuation of tangible property, property tax
deductions, property tax exemptions, and property tax credits that are made
from a determination by an assessing official or county property assessment
board of appeals to the Board under any law. Ind. Code § 6-1.5-4-1.
19.
The parties agree that the dwelling was not complete on March 1, 2010. They
also agree that an amendment added in 2013 entitles an individual to the
homestead deduction if construction of the dwelling that constitutes the
homestead was not completed on the assessment date. The dispute is whether or
not the amendment applies to the March 1, 2010 assessment date.
20.
Pub. L. 288-2013 amended Ind. Code § 6-1.1-12-37 to include, among other
things, a deduction for a homestead if on the assessment date the construction
of the dwelling that constitutes the homestead was not completed. Ind. Code §
6-1.1-12-17 (2013). This provision became effective March 1, 2013. The Petitioners
contend that there is nothing stating that the amendment is not retroactive to
March 1, 2010. The Respondent contends that the amendment became effective in
2013 and there is nothing that indicates that it should be applied prior to
2013.
21.
Despite the change in statute, there can be no question that the statutory
framework in place in 2010 governs the 2010 assessment. See, e.g., Methodist
Hospitals, Inc. v. Lake County Property Tax Assessment Board of Appeals, Cause
No. 45T10-0411-TA-50 (Ind. Tax Ct. 2007) (for publication January 10, 2007)
(Amendment provided that property owned by an Indiana nonprofit corporation
that is used in the operation of a hospital is exempt from property taxation as
of January 1, 2001 but the petitioner’s medical offices were found to be not
exempt in 2000 because the statutory provision in place at the time of
assessment only allowed exemption of property “substantially related to or
supportive of the inpatient facility of the hospital.”)
22.
Therefore, the Board looks to the statute as written in 2010. Ind. Code §
6-1.1-12-37(b) states:
Each
year a homestead is eligible for a standard deduction from the assessed value
of the homestead for an assessment date. The deduction provided by this section
applies to property taxes first due and payable for an assessment date only if
an individual has an interest in the homestead described in subsection (a)(2)(B)
on:
(1)
the assessment date; or
(2)
any date in the same year after an assessment date that a statement is filed
under subsection(e) or section 44 of this chapter, if the property consists of
real property.
Subject
to subsection (c), the auditor of the county shall record and make a deduction
for the individual or entity qualifying for the deduction.
23.
In this case, the Petitioners purchased the property and filed the sales
disclosure form on April 29, 2010. Pursuant to Ind. Code § 6-1.1-12-44, the
sales disclosure form serves as an application for deductions. The Petitioners
applied for the homestead deduction on the sales disclosure form. Board Exhibit
A - Sales Disclosure Form attached to Form 133 petition. Because the County
Auditor originally allowed the homestead deduction, the Board assumes there is
no dispute with the Petitioners’ interest in the homestead or the filing for
the homestead deduction. The letter from the County Auditor states that the homestead
deduction was removed because the home was not 100% complete as of March 1,
2010. Neither the letter nor Mr. Watkins cited to any statutory authority requiring
that the dwelling be 100% complete on the assessment date.
24.
A homestead is defined as an individual’s principal place of residence that (1)
is located in Indiana, (2) the individual owns, and (3) consists of a dwelling
and the real estate. Ind. Code § 6-1.1-12-37(a)(2) (2010). Nothing in Ind. Code
§ 6-1.1-12-37 requires the dwelling to be 100% complete on the assessment date.
25.
Because the statute does not limit the homestead deduction to dwellings that
are 100% complete on the assessment date, neither the County nor the Board have
the authority to impose that limitation. Where a statute’s language is clear,
the Board lacks the authority to construe it for purposes of limiting or
extending its operation. See Joyce Sportswear Co. v. State Bd. Of Tax Comm’rs,
684 N.E.2d 1189, 1192 (Ind. Tax Ct. 1997).
26.
To be eligible for the homestead deduction for the March 1, 2010 assessment
date, the statute required the Petitioners to show that they had an interest in
the homestead and filed for the deduction on any date in 2010. The record shows
that the Petitioners purchased the property and filed for the homestead
deduction on April 29, 2010.
27.
Neither party addressed the other decisive issues in this case. First, did the
Petitioners claim the homestead deduction anywhere else? And second, is the
subject property the Petitioners’ principal place of residence? Again, because
the County Auditor originally allowed homestead deduction, the Board assumes
these issues are not in dispute.
