Citations Affected:
IC 6-1.1-10-16
;
IC 6-1.1-10-21
;
IC 14-33-7-4.
Synopsis: Property tax exemptions for certain organizations. Provides that the 150 acre
property tax exemption for educational institutions also applies to a tract of land that: (1)
contains a building owned, occupied, and used by a person for educational, literary, scientific,
religious, or charitable purposes; or (2) contains a building used for religious worship. Preserves
the 15 acre limitation for a tract of land that contains a parsonage and the 200 acre limitation for
a 4-H fairgrounds. Allows a church or religious institution to file a claim for a refund for taxes
due and payable in 2001. Imposes a moratorium on the possible taxation of organizations that
have not previously been taxed under existing law. Establishes an interim study committee to
study tax exemptions granted to exempt organizations. Prescribes the membership of the
committee. (This conference committee report: (1) provides that the 150 acre property tax
exemption for educational institutions also applies to a tract of land that contains a building
owned, occupied, and used by a person for educational, literary, scientific, religious, or charitable
purposes or contains a building used for religious worship; (2) preserves the 15 acre limitation
for a tract of land that contains a parsonage and the 200 acre limitation for a 4-H fairgrounds; (3)
allows a church or religious institution to file a claim for a refund for taxes due and payable in
2001; (4) imposes a moratorium on the possible taxation of organizations that have not
previously been taxed under existing law; and (5) prescribes the membership of the interim study
committee.)
Effective: Upon passage; March 1, 2000 (retroactive).
MR. SPEAKER:
Your Conference Committee appointed to confer with a like committee from the Senate
upon Engrossed House Amendments to Engrossed Senate Bill No. 19 respectfully reports that
said two committees have conferred and agreed as follows to wit:
that the Senate recede from its dissent from all House amendments and that
the Senate now concur in all House amendments to the bill and that the bill
be further amended as follows:
formed for the purpose of promoting 4-H programs. or
(C) fifteen (15) acres in all other cases.
(d) A tract of land is exempt from property taxation if:
(1) it is purchased for the purpose of erecting a building which that
is to be owned, occupied, and used in such a manner that the
building will be exempt under subsection (a) or (b);
(2) the tract does not exceed:
(A) one hundred fifty (150) acres; in the case of:
(i) an educational institution; or
(ii) a tract that was exempt under this subsection on March 1,
1987;
(B) two hundred (200) acres in the case of a local association
formed for the purpose of promoting 4-H programs; or
(C) fifteen (15) acres in all other cases; and
(3) not more than three (3) years after the property is purchased,
and for each year after the three (3) year period, the owner
demonstrates substantial progress towards the erection of the
intended building and use of the tract for the exempt purpose. To
establish that substantial progress is being made, the owner must
prove the existence of factors such as the following:
(A) Organization of and activity by a building committee or
other oversight group.
(B) Completion and filing of building plans with the appropriate
local government authority.
(C) Cash reserves dedicated to the project of a sufficient amount
to lead a reasonable individual to believe the actual construction
can and will begin within three (3) years.
(D) The breaking of ground and the beginning of actual
construction.
(E) Any other factor that would lead a reasonable individual to
believe that construction of the building is an active plan and
that the building is capable of being completed within six (6)
years considering the circumstances of the owner.
(e) Personal property is exempt from property taxation if it is owned
and used in such a manner that it would be exempt under subsection (a)
or (b) if it were a building.
(f) A hospital's property which that is exempt from property taxation
under subsection (a), (b), or (e) shall remain exempt from property
taxation even if the property is used in part to furnish goods or services
to another hospital whose property qualifies for exemption under this
section.
(g) Property owned by a shared hospital services organization which
that is exempt from federal income taxation under Section 501(c)(3)
or 501(e) of the Internal Revenue Code is exempt from property
taxation if it is owned, occupied, and used exclusively to furnish goods
or services to a hospital whose property is exempt from property
taxation under subsection (a), (b), or (e).
(h) This section does not exempt from property tax an office or a
practice of a physician or group of physicians that is owned by a
hospital licensed under
IC 16-21-1
or other property that is not
substantially related to or supportive of the inpatient facility of the
hospital unless the office, practice, or other property:
(1) provides or supports the provision of charity care (as defined
in
IC 16-18-2-52.5
), including providing funds or other financial
support for health care services for individuals who are indigent (as
defined in
IC 16-18-2-52.5
(b) and
IC 16-18-2-52.5
(c)); or
(2) provides or supports the provision of community benefits (as
defined in
IC 16-21-9-1
), including research, education, or
government sponsored indigent health care (as defined in
IC 16-21-9-2
).
However, participation in the Medicaid or Medicare program alone
does not entitle an office, practice, or other property described in this
subsection to an exemption under this section.
(i) A tract of land or a tract of land plus all or part of a structure on
the land is exempt from property taxation if:
(1) the tract is acquired for the purpose of erecting, renovating, or
improving a single family residential structure that is to be given
away or sold:
(A) in a charitable manner;
(B) by a nonprofit organization; and
(C) to low income individuals who will:
(i) use the land as a family residence; and
(ii) not have an exemption for the land under this section;
(2) the tract does not exceed three (3) acres;
(3) the tract of land or the tract of land plus all or part of a structure
on the land is not used for profit while exempt under this section;
and
(4) not more than three (3) years after the property is acquired for
the purpose described in subdivision (1), and for each year after
the three (3) year period, the owner demonstrates substantial
progress towards the erection, renovation, or improvement of the
intended structure. To establish that substantial progress is being
made, the owner must prove the existence of factors such as the
following:
(A) Organization of and activity by a building committee or
other oversight group.
(B) Completion and filing of building plans with the appropriate
local government authority.
(C) Cash reserves dedicated to the project of a sufficient amount
to lead a reasonable individual to believe the actual construction
can and will begin within six (6) years of the initial exemption
received under this subsection.
(D) The breaking of ground and the beginning of actual
construction.
(E) Any other factor that would lead a reasonable individual to
believe that construction of the structure is an active plan and
that the structure is capable of being:
(i) completed; and
(ii) transferred to a low income individual who does not
receive an exemption under this section;
within six (6) years considering the circumstances of the owner.
(j) An exemption under subsection (i) terminates when the property
is conveyed by the nonprofit organization to another owner. When the
property is conveyed to another owner, the nonprofit organization
receiving the exemption must file a certified statement with the auditor
of the county, notifying the auditor of the change not later than sixty
(60) days after the date of the conveyance. The county auditor shall
immediately forward a copy of the certified statement to the county
assessor. A nonprofit organization that fails to file the statement
required by this subsection is liable for the amount of property taxes
due on the property conveyed if it were not for the exemption allowed
under this chapter.
(k) If property is granted an exemption in any year under subsection
(i) and the owner:
(1) ceases to be eligible for the exemption under subsection (i)(4);
(2) fails to transfer the tangible property within six (6) years after
the assessment date for which the exemption is initially granted; or
(3) transfers the tangible property to a person who:
(A) is not a low income individual; or
(B) does not use the transferred property as a residence for at
least one (1) year after the property is transferred;
the person receiving the exemption shall notify the county recorder and
the county auditor of the county in which the property is located not
later than sixty (60) days after the event described in subdivision (1),
(2), or (3) occurs. The county auditor shall immediately inform the
county assessor of a notification received under this subsection.
(l) If subsection (k)(1), (k)(2), or (k)(3) applies, the owner shall pay,
not later than the date that the next installment of property taxes is due,
an amount equal to the sum of the following:
(1) The total property taxes that, if it were not for the exemption
under subsection (i), would have been levied on the property in
each year in which an exemption was allowed.
(2) Interest on the property taxes at the rate of ten percent (10%)
per year.
(m) The liability imposed by subsection (l) is a lien upon the property
receiving the exemption under subsection (i). An amount collected
under subsection (l) shall be collected as an excess levy. If the amount
is not paid, it shall be collected in the same manner that delinquent
taxes on real property are collected.
(n) Property referred to in this section shall be assessed to the extent
required under
IC 6-1.1-11-9.
society's head rabbi, priest, preacher, minister, pastor, or designee
of the official church body.
____________________________ ____________________________
Senator ZakasRepresentative Crawford
Chairperson
____________________________ ____________________________
Senator CraycraftRepresentative Burton
Senate Conferees House Conferees