Citations Affected:
IC 6-1.1-10-16.
Synopsis: Property tax exemptions. Reduces the period during which
a property tax exemption applies to land under development for exempt
purposes, and to undeveloped land intended to be developed for
exempt purposes.
Effective: July 1, 2002.
December 7, 2001, read first time and referred to Committee on Governmental and
Regulatory Affairs.
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
SECTION 1.
IC 6-1.1-10-16
, AS AMENDED BY P.L.198-2001,
SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2002]: Sec. 16. (a) All or part of a building is exempt from
property taxation if it is owned, occupied, and used by a person for
educational, literary, scientific, religious, or charitable purposes.
(b) A building is exempt from property taxation if it is owned,
occupied, and used by a town, city, township, or county for educational,
literary, scientific, fraternal, or charitable purposes.
(c) A tract of land, including the campus and athletic grounds of an
educational institution, is exempt from property taxation if:
(1) a building which is exempt under subsection (a) or (b) is
situated on it; and
(2) the tract does not exceed:
(A) one hundred fifty (150) acres in the case of:
(i) an educational institution;
(ii) a tract that was exempt under this subsection on March
1, 1987; or
to another hospital whose property qualifies for exemption under this
section.
(g) Property owned by a shared hospital services organization which
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;