MR. PRESIDENT:
The Senate Committee on Finance, to which was referred House Bill No. 2005, has had the
same under consideration and begs leave to report the same back to the Senate with the
recommendation that said bill be AMENDED as follows:
SOURCE: Page 1, line 1; (03)CR200501.1. -->
Page 1, delete lines 1 through 16, begin a new paragraph and insert:
SOURCE: IC 6-1.1-10-16; (03)CR200501.1. -->
"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, 2003]: 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 that 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
(B) two hundred (200) acres in the case of a local association
formed for the purpose of promoting 4-H programs; 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 and active pursuit towards the erection, renovation, or
improvement of the intended structure. To establish that
substantial progress is being made, and active pursuit under this
subdivision, 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.
those purposes during more than fifty percent (50%) of the time that it
is used or occupied in the year that ends on the assessment date of the
property.
(b) The determination under subsection (c) of:
(1) the use or occupation of the property; and
(2) the application of an exemption;
applies separately to each part of the property identified under
IC 6-1.1-11-3
(c)(5).
(c) If a section of this chapter states one (1) or more purposes for
which property must be used or occupied in order to qualify for an
exemption, then the exemption applies as follows:
(1) Property that is exclusively used or occupied for one (1) or
more of the stated purposes is totally exempt under that section.
(2) Property that is predominantly used or occupied for one (1) or
more of the stated purposes by a church, religious society, or
not-for-profit school is totally exempt under that section.
(3) Property that is predominantly used or occupied for one (1) or
more of the stated purposes by a person other than a church,
religious society, or not-for-profit school is exempt under that
section from property tax on the part of the assessment of the
property that bears the same proportion to the total assessment of
the property as the amount of time that the property was used or
occupied for one (1) or more of the stated purposes during the
year that ends on the assessment date of the property bears to the
amount of time that the property was used or occupied for any
purpose during that year.
(4) Property that is predominantly used or occupied for a purpose
other than one (1) of the stated purposes is not exempt from any
part of the property tax.
(c) (d) Property is not used or occupied for one (1) or more of the
stated purposes during the time that a predominant part of the property
is used or occupied in connection with a trade or business that is not
substantially related to the exercise or performance of one (1) or more
of the stated purposes.
SOURCE: IC 6-1.1-11-3; (03)CR200501.4. -->
SECTION 4.
IC 6-1.1-11-3
, AS AMENDED BY P.L.178-2002,
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]: Sec. 3. (a) Subject to subsections (e) and (f), an
owner of tangible property who wishes to obtain an exemption from
property taxation shall file a certified application in duplicate with the
county assessor of the county in which the property that is the subject
of the exemption is located. The application must be filed annually on
or before May 15 on forms prescribed by the department of local
government finance. Except as provided in sections 1, 3.5, and 4 of this
chapter, the application applies only for the taxes imposed for the year
for which the application is filed.
(b) The authority for signing an exemption application may not be
delegated by the owner of the property to any other person except by
an executed power of attorney.
(c) An exemption application which is required under this chapter
shall contain the following information:
(1) A description of the property claimed to be exempt in
sufficient detail to afford identification.
(2) A statement showing the ownership, possession, and use of
the property.
(3) The grounds for claiming the exemption.
(4) The full name and address of the applicant.
(5) For the year that ends on the assessment date of the
property, identification of:
(A) each part of the property used or occupied; and
(B) each part of the property not used or occupied;
for one (1) or more exempt purposes under
IC 6-1.1-10
during
the time the property is used or occupied.
(6) Any additional information which the department of local
government finance may require.
(d) A person who signs an exemption application shall attest in
writing and under penalties of perjury that, to the best of the person's
knowledge and belief, a predominant part of the property claimed to be
exempt is not being used or occupied in connection with a trade or
business that is not substantially related to the exercise or performance
of the organization's exempt purpose.
(e) If an owner wishes to file an exemption application under
subsection (a) with respect to tangible property for which the tax
duplicate:
(1) includes no assessed value; or
(2) includes an assessed value that omits the assessed value of
any part of the property;
the applicant must request in writing that the township assessor
assess the property or any omitted property. The applicant shall
file a copy of the written request with the county assessor.
(f) If the county assessor determines that:
(1) an exemption application filed under subsection (a) applies
to tangible property described in subsection (e)(1) or (e)(2);
and
(2) the applicant has not complied with subsection (e);
the county assessor shall notify the applicant in writing of the
requirements of subsection (e). The applicant then has thirty (30)
days after the date on the notice to comply with the requirements
of subsection (e). The county property tax assessment board of
appeals shall deny an application described in this subsection if the
applicant does not comply with this subsection.".
Delete pages 2 through 6.
SOURCE: Page 7, line 1; (03)CR200501.7. -->
Page 7, delete lines 1 through 7.
Page 7, line 17, delete "a nonprofit corporation." and insert " :
(A) a nonprofit corporation;
(B) a governmental entity; or
(C) an individual who leases a dwelling unit in:
(i) a public housing project;
(ii) a nursing facility referred to in
IC 12-15-14
;
(iii) an assisted living facility; or
(iv) an affordable housing development.".
Page 7, between lines 31 and 32, begin a new paragraph and insert:
SOURCE: IC 6-1.1-11-5; (03)CR200501.6. -->
"SECTION 6.
IC 6-1.1-11-5
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) The auditor
assessor of the county in which property is located shall, in a particular
year, mail a notice to the owner of the property if:
(1) the owner has not applied for a tax exemption for that year;
(2) a tax exemption for the property was in effect for the
immediately preceding year; and
(3) the owner is required to file an application for the exemption
for that year under section 3 or 3.5 of this chapter.
(b) The notice required by this section must:
(1) identify the property by key number, if any, and a street
address, if any, or other common description of the property other
than a legal description; and
shall, as soon as funds are available in the property tax replacement
fund, be retransferred from the property tax replacement fund to the
state general fund, and the auditor of state shall issue a warrant to the
treasurer of state ordering the replacement of that amount.
(e) Except as provided in subsection (i), the department shall not
distribute under subsection (b) and section 10 of this chapter the money
attributable to the county's property reassessment fund if, by the date
the distribution is scheduled to be made, the county auditor has not:
(1) sent a certified statement required to be sent by that date under
IC 6-1.1-17-1
; or
(2) forwarded the duplicate copies of all approved exemption
applications required to be forwarded by that date under
IC 6-1.1-11-8
(a);
to the department of local government finance.
(f) Except as provided in subsection (i), if the elected township
assessors in the county, the elected township assessors and the county
assessor, or the county assessor has not transmitted to the department
of local government finance by October 1 of the year in which the
distribution is scheduled to be made the data for all townships in the
county required to be transmitted under
IC 6-1.1-4-25
(b), the state
board or the department shall not distribute under subsection (b) and
section 10 of this chapter a part of the money attributable to the
county's property reassessment fund. The portion not distributed is the
amount that bears the same proportion to the total potential distribution
as the number of townships in the county for which data was not
transmitted by August 1 as described in this section bears to the total
number of townships in the county.
(g) Money not distributed under subsection (e) for the reasons
stated in subsection (e)(1) and (e)(2) shall be distributed to the county
when the county auditor:
(1) sends to the department of local government finance the
certified statement required to be sent under
IC 6-1.1-17-1
; and
(2) forwards to the department of local government finance
the approved exemption applications required to be
forwarded under
IC 6-1.1-11-8
(a);
with respect to which the failure to send or forward resulted in the
withholding of the distribution under subsection (e).
(h) Money not distributed under subsection (f) shall be distributed
to the county when the elected township assessors in the county, the
elected township assessors and the county assessor, or the county
assessor transmits to the department of local government finance the
data required to be transmitted under
IC 6-1.1-4-25
(b) with respect to
which the failure to transmit resulted in the withholding of the
distribution under subsection (f).
(i) The restrictions on distributions under subsections (e) and (f) do
not apply if the department of local government finance determines
that:
(1) the failure of a county auditor to send:
(A) a certified statement ; or
(B) copies of all approved exemption applications;
as described in subsection (e); or
(2) the failure of an official to transmit data as described in
subsection (f);
is justified by unusual circumstances.
SOURCE: IC 14-33-7-4; (03)CR200501.12. -->
SECTION 12.
IC 14-33-7-4
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 4. (a) This section
applies to the following tangible property owned by or held in trust for
the use of a church or religious society:
(1) A building that is used for religious worship.
(2) A building that is used as a parsonage.
(3) The pews and furniture contained within a building that is
used for religious worship.
(4) The land upon which a building that is used for religious
worship is situated.
(5) The land, not exceeding fifteen (15) acres, upon which a
building described in this section that is used as a parsonage is
situated.
(b) Property is exempt from the special benefits tax that may be
imposed under:
(1)
IC 14-33-6-13
and section 1 of this chapter; or
(2)
IC 14-33-21-5
;
to the extent that the special benefits tax revenue will be used for the
construction or improvement of a water impoundment project,
including a lake, pond, or dam.
(c) To obtain an exemption for a parsonage, a church or religious
society must provide the county auditor with an affidavit at the time the
church or religious society applies for the exemption. The affidavit
must:
(1) state:
(A) that all parsonages are being used to house one (1) of the
church's or religious society's rabbis, priests, preachers,
ministers, or pastors; and
(B) that none of the parsonages are being used to make a
profit; and
(2) be signed under oath or affirmation by the church's or
religious society's head rabbi, priest, preacher, minister, pastor, or
designee of the official church body.".
Delete pages 9 through 11.
SOURCE: Page 12, line 1; (03)CR200501.12. -->
Page 12, delete lines 1 through 20.
Page 12, line 33, delete "fifteen (15)" and insert " forty-five (45)".
Page 13, line 5, delete "Interest of four percent (4%) per year" and
and when so amended that said bill do pass.
Committee Vote: Yeas 14, Nays 0.
Borst
CR200501/DI 44 2003