Effective Date: July 1, 2008

Summary of Amendments

This act aims through its amendments to streamline the sales disclosure process for real estate transactions, modify the disclosure form, and modify the homeowner deduction application.

The act requires a separate sales disclosure form for each parcel conveyed even if the conveyance document covers multiple parcels. The only exception is multiple parcels that, when sold together, form one contiguous parcel in a single taxing district. The amendment also allows for one party from each side to sign the disclosure in a transaction involving more than two parties. The disclosure may be used to apply for homestead credit and other property tax deductions. Finally, the amendments require the Department of Local Government Finance (DLGF) to prescribe a new form that complies with the requirements of the act by July 1, 2008.

The second major part of the amendment deals with modifying the form of the disclosure that will be prescribed by the DLGF. First, the act extends the definition of conveyance to transfer of real property to a charity. Then the amendment further expands its coverage by eliminating many of the exceptions listed under the definition of "conveyance document." Notably documents relating to certain compulsory transactions (foreclosure, divorce, court order, condemnation) are eliminated. The amendment goes on to make the $10 filing fee permanent, exempting transfers to charities and most compulsory transfers. The amendment codifies the revenue split that had been a non-code provision, splitting the revenue between the county sales disclosure fund and the state assessment-training fund. The amendment also requires the disclosure form to include the key number of each parcel subject to conveyance even if the whole parcel is not being conveyed. The amendment does not allow the county recorder to record a conveyance document unless the sales disclosure form has been approved by the county assessor and filed. The amendment also increases the penalty for knowingly falsifying or omitting information on a sales disclosure form from a Class A misdemeanor to a Class C felony and makes the penalty for filing an incomplete or inaccurate form apply only if the filer fails to correct the error within 30 days of being notified of the error.

The final issue the amendment deals with is the homeowner deduction application. The amendment allows qualified homeowners to claim a homestead credit and property tax deduction anytime during a calendar year, further the taxpayer must be the owner or contract buyer on the filing date, not the date of assessment to qualify. Further, regardless of change of ownership, the credit or deduction applies automatically in a year if the credit or deduction applied the year prior and the current owner or buyer is eligible for the credit or deduction. The amendment also allows the county auditor to reduce the assessed value used to set tax rates and to take into account deductions resulting from applications filed late in the year, further changes in information by the county auditor will not result in withholding of PTRC by the state. Finally, the act requires the DLFG to establish guidelines to enforce the application of the homestead credit only to an individual's principle place of residence by January 1, 2009.