Introduced Version






HOUSE BILL No. 1206

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 6-1.1-10-16.7 ; IC 36-1-8-14 ; IC 36-3-2-11.

Synopsis: PILOTS dedicated to low income housing trust fund. Establishes a property tax exemption for real property that was constructed, rehabilitated, or acquired to provide housing to income eligible persons under the federal low income housing tax credit program. Permits the governing body of a political subdivision to enter into agreements concerning payments in lieu of taxes for the same real property, and provides that the payments are to be deposited in the housing trust fund.

Effective: July 1, 2001; January 1, 2002.





Crawford




    January 9, 2001, read first time and referred to Committee on Human Affairs.







Introduced

First Regular Session 112th General Assembly (2001)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2000 General Assembly.

HOUSE BILL No. 1206



    A BILL FOR AN ACT to amend the Indiana Code concerning local government.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 6-1.1-10-16.7; (01)IN1206.1.1. -->     SECTION 1. IC 6-1.1-10-16.7 , AS ADDED BY P.L.19-2000, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2002]: Sec. 16.7. Real property is exempt from property taxation if:
        (1) the real property is located within a county containing a consolidated city;
        (2) (1) the real property is owned by an Indiana corporation;
        (3) (2) the improvements on the real property were constructed, rehabilitated, or acquired for the purpose of providing housing to income eligible persons under the federal low income housing tax credit program under 26 U.S.C. 42;
        (4) (3) the real property is subject to an extended use agreement under 26 U.S.C. 42 as administered by the Indiana housing finance authority; and
        (5) (4) the owner of the property has entered into an agreement to make payments in lieu of taxes under IC 36-3-2-11.
SOURCE: IC 36-1-8-14; (01)IN1206.1.2. -->     SECTION 2. IC 36-1-8-14 IS ADDED TO THE INDIANA CODE

AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2002]: Sec. 14. (a) As used in this section, the following terms have the meanings set forth in IC 6-1.1-1 :
        (1) Assessed value.
        (2) Exemption.
        (3) Owner.
        (4) Person.
        (5) Property taxation.
        (6) Real property.
        (7) Township assessor.
    (b) As used in this section, "PILOTS" means payments in lieu of taxes.
    (c) As used in this section, "property owner" means the owner of real property described in IC 6-1.1-10-16.7.
    (d) Subject to the approval of a property owner, the governing body of a political subdivision may adopt an ordinance to require the property owner to pay PILOTS at times set forth in the ordinance with respect to real property that is subject to an exemption under IC 6-1.1-10-16.7. The ordinance remains in full force and effect until repealed or modified by the governing body, subject to the approval of the property owner.
    (e) The PILOTS must be calculated so that the PILOTS are in an amount equal to the amount of property taxes that would have been levied by the governing body for the political subdivision upon the real property described in subsection (d) if the property were not subject to an exemption from property taxation.
    (f) PILOTS shall be imposed as are property taxes and shall be based on the assessed value of the real property described in subsection (d). The township assessors shall assess the real property described in subsection (d) as though the property were not subject to an exemption.
    (g) PILOTS collected under this section shall be deposited in the low income housing trust fund established under IC 5-20-4 and used for any purpose for which the low income housing trust fund may be used.
    (h) PILOTS shall be due as set forth in the ordinance and bear interest, if unpaid, as in the case of other taxes on property. PILOTS shall be treated in the same manner as taxes for purposes of all procedural and substantive provisions of law.
    (i) This section does not apply to a county that contains a consolidated city or to a political subdivision of the county.

SOURCE: IC 36-3-2-11; (01)IN1206.1.3. -->     SECTION 3. IC 36-3-2-11 , AS ADDED BY P.L.19-2000,

SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 11. (a) As used in this section, the following terms have the meanings set forth in IC 6-1.1-1 :
        (1) Assessed value.
        (2) Exemption.
        (3) Owner.
        (4) Person.
        (5) Property taxation.
        (6) Real property.
        (7) Township assessor.
    (b) As used in this section, "PILOTS" means payments in lieu of taxes.
    (c) As used in this section, "property owner" means the owner of real property described in IC 6-1.1-10-16.7 that is located in a county with a consolidated city.
    (d) Subject to the approval of a property owner, the legislative body of the consolidated city may adopt an ordinance to require the property owner to pay PILOTS at times set forth in the ordinance with respect to real property that is subject to an exemption under IC 6-1.1-10-16.7. The ordinance remains in full force and effect until repealed or modified by the legislative body, subject to the approval of the property owner.
    (e) The PILOTS must be calculated so that the PILOTS are in an amount equal to the amount of property taxes that would have been levied by the legislative body for the consolidated city and county upon the real property described in subsection (d) if the property were not subject to an exemption from property taxation.
    (f) PILOTS shall be imposed as are property taxes and shall be based on the assessed value of the real property described in subsection (d). The township assessors shall assess the real property described in subsection (d) as though the property were not subject to an exemption.
    (g) PILOTS collected under this section shall be deposited in the housing trust fund established under IC 36-7-15.1-35.5 and used for any purpose for which the housing trust fund may be used.
    (h) PILOTS shall be due as set forth in the ordinance and bear interest, if unpaid, as in the case of other taxes on property. PILOTS shall be treated in the same manner as taxes for purposes of all procedural and substantive provisions of law.

SOURCE: ; (01)IN1206.1.4. -->     SECTION 4. [EFFECTIVE JANUARY 1, 2002] IC 6-1.1-10-16.7 , as amended by this act, applies to property taxes first due and payable after December 31, 2001.