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 2006 Regular Session of the General Assembly.
Be it enacted by the General Assembly of the State of Indiana:
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 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) four (4) years after the property is
acquired for the purpose described in subdivision (1), and for
each year after the three (3) four (4) year period, the owner
demonstrates substantial progress and active pursuit towards the
erection, renovation, or improvement of the intended structure. To
establish substantial progress 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) five (5) 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) eight (8) 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) eight (8)
years after the assessment date for which the exemption is initially
granted; or
of operating a court established by statute enacted after December
31, 1973. Before recommending such an increase, the local
government tax control board shall consider all other revenues
available to the civil taxing unit that could be applied for that
purpose. The maximum aggregate levy increases that the local
government tax control board may recommend for a particular
court equals the civil taxing unit's estimate of the unit's share of
the costs of operating a court for the first full calendar year in
which it is in existence. For purposes of this subdivision, costs of
operating a court include:
(A) the cost of personal services (including fringe benefits);
(B) the cost of supplies; and
(C) any other cost directly related to the operation of the court.
(3) Permission to the civil taxing unit to increase its levy in excess
of the limitations established under section 3 of this chapter, if the
local government tax control board finds that the quotient
determined under STEP SIX of the following formula is equal to
or greater than one and two-hundredths (1.02):
STEP ONE: Determine the three (3) calendar years that most
immediately precede the ensuing calendar year and in which
a statewide general reassessment of real property or the initial
annual adjustment of the assessed value of real property
under IC 6-1.1-4-4.5 does not first become effective.
STEP TWO: Compute separately, for each of the calendar
years determined in STEP ONE, the quotient (rounded to the
nearest ten-thousandth (0.0001)) of the sum of the civil taxing
unit's total assessed value of all taxable property and the total
assessed value of property tax deductions in the unit under
IC 6-1.1-12-41 or IC 6-1.1-12-42 in the particular calendar
year, divided by the sum of the civil taxing unit's total assessed
value of all taxable property and the total assessed value of
property tax deductions in the unit under IC 6-1.1-12-41 or
IC 6-1.1-12-42 in the calendar year immediately preceding the
particular calendar year.
STEP THREE: Divide the sum of the three (3) quotients
computed in STEP TWO by three (3).
STEP FOUR: Compute separately, for each of the calendar
years determined in STEP ONE, the quotient (rounded to the
nearest ten-thousandth (0.0001)) of the sum of the total
assessed value of all taxable property in all counties and the
total assessed value of property tax deductions in all counties
under IC 6-1.1-12-41 or IC 6-1.1-12-42 in the particular
calendar year, divided by the sum of the total assessed value
of all taxable property in all counties and the total assessed
value of property tax deductions in all counties under
IC 6-1.1-12-41 or IC 6-1.1-12-42 in the calendar year
immediately preceding the particular calendar year.
STEP FIVE: Divide the sum of the three (3) quotients
computed in STEP FOUR by three (3).
STEP SIX: Divide the STEP THREE amount by the STEP
FIVE amount.
The civil taxing unit may increase its levy by a percentage not
greater than the percentage by which the STEP THREE amount
exceeds the percentage by which the civil taxing unit may
increase its levy under section 3 of this chapter based on the
assessed value growth quotient determined under section 2 of this
chapter.
(4) Permission to the civil taxing unit to increase its levy in excess
of the limitations established under section 3 of this chapter, if the
local government tax control board finds that the civil taxing unit
needs the increase to pay the costs of furnishing fire protection for
the civil taxing unit through a volunteer fire department. For
purposes of determining a township's need for an increased levy,
the local government tax control board shall not consider the
amount of money borrowed under IC 36-6-6-14 during the
immediately preceding calendar year. However, any increase in
the amount of the civil taxing unit's levy recommended by the
local government tax control board under this subdivision for the
ensuing calendar year may not exceed the lesser of:
(A) ten thousand dollars ($10,000); or
(B) twenty percent (20%) of:
(i) the amount authorized for operating expenses of a
volunteer fire department in the budget of the civil taxing
unit for the immediately preceding calendar year; plus
(ii) the amount of any additional appropriations authorized
during that calendar year for the civil taxing unit's use in
paying operating expenses of a volunteer fire department
under this chapter; minus
(iii) the amount of money borrowed under IC 36-6-6-14
during that calendar year for the civil taxing unit's use in
paying operating expenses of a volunteer fire department.
(5) Permission to a civil taxing unit to increase its levy in excess
of the limitations established under section 3 of this chapter in
order to raise revenues for pension payments and contributions
the civil taxing unit is required to make under IC 36-8. The
maximum increase in a civil taxing unit's levy that may be
recommended under this subdivision for an ensuing calendar year
equals the amount, if any, by which the pension payments and
contributions the civil taxing unit is required to make under
IC 36-8 during the ensuing calendar year exceeds the product of
one and one-tenth (1.1) multiplied by the pension payments and
contributions made by the civil taxing unit under IC 36-8 during
the calendar year that immediately precedes the ensuing calendar
year. For purposes of this subdivision, "pension payments and
contributions made by a civil taxing unit" does not include that
part of the payments or contributions that are funded by
distributions made to a civil taxing unit by the state.
(6) Permission to increase its levy in excess of the limitations
established under section 3 of this chapter if the local government
tax control board finds that:
(A) the township's township assistance ad valorem property
tax rate is less than one and sixty-seven hundredths cents
($0.0167) per one hundred dollars ($100) of assessed
valuation; and
(B) the township needs the increase to meet the costs of
providing township assistance under IC 12-20 and IC 12-30-4.
The maximum increase that the board may recommend for a
township is the levy that would result from an increase in the
township's township assistance ad valorem property tax rate of
one and sixty-seven hundredths cents ($0.0167) per one hundred
dollars ($100) of assessed valuation minus the township's ad
valorem property tax rate per one hundred dollars ($100) of
assessed valuation before the increase.
(7) Permission to a civil taxing unit to increase its levy in excess
of the limitations established under section 3 of this chapter if:
(A) the increase has been approved by the legislative body of
the municipality with the largest population where the civil
taxing unit provides public transportation services; and
(B) the local government tax control board finds that the civil
taxing unit needs the increase to provide adequate public
transportation services.
The local government tax control board shall consider tax rates
and levies in civil taxing units of comparable population, and the
effect (if any) of a loss of federal or other funds to the civil taxing
unit that might have been used for public transportation purposes.
However, the increase that the board may recommend under this
subdivision for a civil taxing unit may not exceed the revenue that
would be raised by the civil taxing unit based on a property tax
rate of one cent ($0.01) per one hundred dollars ($100) of
assessed valuation.
(8) Permission to a civil taxing unit to increase the unit's levy in
excess of the limitations established under section 3 of this
chapter if the local government tax control board finds that:
(A) the civil taxing unit is:
(i) a county having a population of more than one hundred
forty-eight thousand (148,000) but less than one hundred
seventy thousand (170,000);
(ii) a city having a population of more than fifty-five
thousand (55,000) but less than fifty-nine thousand (59,000);
(iii) a city having a population of more than twenty-eight
thousand seven hundred (28,700) but less than twenty-nine
thousand (29,000);
(iv) a city having a population of more than fifteen thousand
four hundred (15,400) but less than sixteen thousand six
hundred (16,600); or
(v) a city having a population of more than seven thousand
(7,000) but less than seven thousand three hundred (7,300);
and
(B) the increase is necessary to provide funding to undertake
removal (as defined in IC 13-11-2-187) and remedial action
(as defined in IC 13-11-2-185) relating to hazardous
substances (as defined in IC 13-11-2-98) in solid waste
disposal facilities or industrial sites in the civil taxing unit that
have become a menace to the public health and welfare.
The maximum increase that the local government tax control
board may recommend for such a civil taxing unit is the levy that
would result from a property tax rate of six and sixty-seven
hundredths cents ($0.0667) for each one hundred dollars ($100)
of assessed valuation. For purposes of computing the ad valorem
property tax levy limit imposed on a civil taxing unit under
section 3 of this chapter, the civil taxing unit's ad valorem
property tax levy for a particular year does not include that part of
the levy imposed under this subdivision. In addition, a property
tax increase permitted under this subdivision may be imposed for
only two (2) calendar years.
(9) Permission for a county:
(A) having a population of more than eighty thousand (80,000)
but less than ninety thousand (90,000) to increase the county's
levy in excess of the limitations established under section 3 of
this chapter, if the local government tax control board finds
that the county needs the increase to meet the county's share of
the costs of operating a jail or juvenile detention center,
including expansion of the facility, if the jail or juvenile
detention center is opened after December 31, 1991;
(B) that operates a county jail or juvenile detention center that
is subject to an order that:
(i) was issued by a federal district court; and
(ii) has not been terminated;
(C) that operates a county jail that fails to meet:
(i) American Correctional Association Jail Construction
Standards; and
(ii) Indiana jail operation standards adopted by the
department of correction; or
(D) that operates a juvenile detention center that fails to meet
standards equivalent to the standards described in clause (C)
for the operation of juvenile detention centers.
Before recommending an increase, the local government tax
control board shall consider all other revenues available to the
county that could be applied for that purpose. An appeal for
operating funds for a jail or a juvenile detention center shall be
considered individually, if a jail and juvenile detention center are
both opened in one (1) county. The maximum aggregate levy
increases that the local government tax control board may
recommend for a county equals the county's share of the costs of
operating the jail or a juvenile detention center for the first full
calendar year in which the jail or juvenile detention center is in
operation.
(10) Permission for a township to increase its levy in excess of the
limitations established under section 3 of this chapter, if the local
government tax control board finds that the township needs the
increase so that the property tax rate to pay the costs of furnishing
fire protection for a township, or a portion of a township, enables
the township to pay a fair and reasonable amount under a contract
with the municipality that is furnishing the fire protection.
However, for the first time an appeal is granted the resulting rate
increase may not exceed fifty percent (50%) of the difference
between the rate imposed for fire protection within the
municipality that is providing the fire protection to the township
and the township's rate. A township is required to appeal a second
time for an increase under this subdivision if the township wants
to further increase its rate. However, a township's rate may be
increased to equal but may not exceed the rate that is used by the
municipality. More than one (1) township served by the same
municipality may use this appeal.
(11) Permission for a township to increase its levy in excess of the
limitations established under section 3 of this chapter, if the local
government tax control board finds that the township has been
required, for the three (3) consecutive years preceding the year for
which the appeal under this subdivision is to become effective, to
borrow funds under IC 36-6-6-14 to furnish fire protection for the
township or a part of the township. However, the maximum
increase in a township's levy that may be allowed under this
subdivision is the least of the amounts borrowed under
IC 36-6-6-14 during the preceding three (3) calendar years. A
township may elect to phase in an approved increase in its levy
under this subdivision over a period not to exceed three (3) years.
A particular township may appeal to increase its levy under this
section not more frequently than every fourth calendar year.
(12) Permission to a city having a population of more than
twenty-nine thousand (29,000) but less than thirty-one thousand
(31,000) to increase its levy in excess of the limitations
established under section 3 of this chapter if:
(A) an appeal was granted to the city under this section to
reallocate property tax replacement credits under IC 6-3.5-1.1
in 1998, 1999, and 2000; and
(B) the increase has been approved by the legislative body of
the city, and the legislative body of the city has by resolution
determined that the increase is necessary to pay normal
operating expenses.
The maximum amount of the increase is equal to the amount of
property tax replacement credits under IC 6-3.5-1.1 that the city
petitioned under this section to have reallocated in 2001 for a
purpose other than property tax relief.
SECTION 3. [EFFECTIVE JANUARY 1, 2007 (RETROACTIVE)]
(a) This SECTION applies to property that:
(1) is located in Vermillion County;
(2) is used and owned by Ferguson Recreation Park, Inc.; and
(3) the auditor of Vermillion County, in a reversal of past
county practice, determined to be not eligible for a property
tax exemption under IC 6-1.1-10-16 for property taxes first
due and payable in 2007.
(b) Notwithstanding any other law, the auditor of Vermillion
County shall:
(1) waive the 2006 determination of the county auditor; and
(2) grant the appropriate exemption.
(c) A property tax exemption granted under this SECTION
applies to property taxes first due and payable in 2007.
(d) The general assembly finds that:
(1) the property described in this SECTION was previously
determined by the auditor of Vermillion County to be eligible
to receive a property tax exemption under IC 6-1.1-10-16;
(2) the interest of taxpayer fairness requires a restoration of
the property tax exemptions for the property that have been
denied for property taxes first due and payable in 2007; and
(3) the absence of other remedies for the taxpayers requires
legislative action.
(e) This SECTION expires December 31, 2007.
SECTION 4. [EFFECTIVE JANUARY 1, 2007 (RETROACTIVE)]
(a) This SECTION applies to property that:
(1) is located in Vermillion County;
(2) is used and owned by Blandford Sports Club;
(3) the auditor of Vermillion County, in a reversal of past
county practice, determined to be not eligible for a property
tax exemption under IC 6-1.1-10-16 for property taxes first
due and payable in 2007; and
(4) was subject to a petition to the Indiana board of tax review
that was denied by the Indiana board of tax review because
the petitioner's Form 132 was untimely filed.
(b) Notwithstanding any other law, the auditor of the county in
which the property described in subsection (a) is located shall:
(1) waive the 2006 determination of the county auditor;
(2) disregard the determination of the Indiana board of tax
review; and
(3) grant the appropriate exemption.
(c) A property tax exemption granted under this SECTION
applies to property taxes first due and payable in 2007.
(d) The general assembly finds that:
(1) the property described in this SECTION was previously
determined by the auditor of Vermillion County to be eligible
to receive a property tax exemption under IC 6-1.1-10-16;
(2) the interest of taxpayer fairness requires a restoration of
the property tax exemptions for the property that have been
denied for property taxes first due and payable in 2007; and
(3) the absence of other remedies for the taxpayers requires
legislative action.
(e) This SECTION expires December 31, 2007.
SECTION 5. [EFFECTIVE JANUARY 1, 2007 (RETROACTIVE)]
(a) This SECTION applies to property that:
(1) is located in Vermillion County;
(2) is used and owned by the Universal Young Men's Club;
and
(3) the auditor of Vermillion County, in a reversal of past
county practice, determined to be not eligible for a property
tax exemption under IC 6-1.1-10-16 for property taxes first
due and payable in 2007.
(b) Notwithstanding any other law, the auditor of Vermillion
County shall:
(1) waive the 2006 determination of the county auditor; and
(2) grant the appropriate exemption.
(c) A property tax exemption granted under this SECTION
applies to property taxes first due and payable in 2007.
(d) The general assembly finds that:
(1) the property described in this SECTION was previously
determined by the auditor of Vermillion County to be eligible
to receive a property tax exemption under IC 6-1.1-10-16;
(2) the interest of taxpayer fairness requires a restoration of
the property tax exemptions for the property that have been
denied for property taxes first due and payable in 2007; and
(3) the absence of other remedies for the taxpayers requires
legislative action.
(e) This SECTION expires December 31, 2007.
SECTION 6. [EFFECTIVE JANUARY 1, 2007 (RETROACTIVE)]
(a) This SECTION applies notwithstanding the following:
(1) IC 6-1.1-3-7.5.
(2) IC 6-1.1-10-31.1.
(3) IC 6-1.1-11.
(4) 50 IAC 4.2-2.
(5) 50 IAC 4.2-3.
(6) 50 IAC 4.2-11.
(7) 50 IAC 4.2-12.
(8) All of the following as in effect before being voided by
IC 6-1.1-3-22:
(A) 50 IAC 4.3-2.
(B) 50 IAC 4.3-3.
(C) 50 IAC 4.3-11.
(D) 50 IAC 4.3-12.
(9) 50 IAC 16.
(b) As used in this SECTION, "amended return" means an
amended personal property tax return submitted for filing by a
taxpayer after December 31, 2006, and before March 1, 2007, for
the assessment dates.
(c) As used in this SECTION, "assessment dates" refers to
assessment dates (as defined in IC 6-1.1-1-2(1)) in 2002, 2003, and
2004.
(d) As used in this SECTION, "return" refers to the personal
property tax return required under IC 6-1.1-3-7.
(e) As used in this SECTION, "taxpayer" means a taxpayer
that:
(1) filed original returns under IC 6-1.1-3-7 for the assessment
dates; and
(2) submitted for filing amended returns for the assessment
dates.
(f) The amended returns:
(1) are allowed; and
(2) are considered to have been timely filed.
(g) A taxpayer is entitled to the exemptions for tangible personal
property claimed on:
(1) Schedule B of the amended returns; and
(2) the Form 103-W filed with the amended returns.
(h) Any notice of increased assessed value issued by a township
assessor with respect to personal property that is the subject of an
amended return is considered withdrawn and nullified.
(i) IC 6-1.1-37-7, IC 6-1.1-37-9, and IC 6-1.1-37-10 do not apply
to any additional personal property taxes owed by a taxpayer as a
result of filing an amended return.
(j) A taxpayer is not entitled to a refund with respect to any
amended return filed by the taxpayer under this SECTION.
(k) This SECTION expires July 1, 2008.
SECTION 7. [EFFECTIVE JANUARY 1, 2001 (RETROACTIVE)]
(a) The definitions in IC 6-1.1-1 apply to this SECTION.
(b) This SECTION applies only to an entity that meets all of the
following conditions:
(1) The entity is:
(A) a nonprofit corporation that is organized for
educational, literary, scientific, religious, or charitable
purposes; or
(B) a local chapter of a nonprofit corporation referred to
in clause (A).
(2) For the assessment date in a calendar year after 2000:
(A) tangible property owned by the entity was, except for
the entity's failure to timely file an application under
IC 6-1.1-11 for property tax exemption, otherwise eligible
for an exemption;
(B) the entity failed to timely file an application under
IC 6-1.1-11 for property tax exemption for the tangible
property for the assessment date; and
(C) the entity's tangible property was subject to taxation
for the assessment date.
(3) The tangible property, or other property owned by the
entity in the same county, was exempt from taxation in either:
(A) the calendar year before the year containing the
assessment date described in subdivision (2); or
(B) the calendar year two (2) years before the year
containing the assessment date described in subdivision (2).
(c) Notwithstanding any provision of IC 6-1.1-11 or any other
law specifying the date by which an application for property tax
exemption must be filed to claim an exemption for a particular
assessment date, an entity described in subsection (b) may before
January 1, 2008, file with the county assessor an application for
property tax exemption for an assessment date described in
subsection (b)(2).
(d) Notwithstanding any provision of IC 6-1.1-11 or any other
law, an application for property tax exemption filed under
subsection (c) is considered to be timely filed, and the county
property tax assessment board of appeals shall grant an exemption
claimed for the assessment date on the application upon the county
property tax assessment board of appeals's determination that:
(1) the entity's application for property tax exemption satisfies
all other applicable requirements; and
(2) the entity's tangible property was, except for the failure to
timely file an application for property tax exemption,
otherwise eligible for the claimed exemption.
(e) If an entity has previously paid the tax liability for tangible
property for an assessment date and the property is granted an
exemption under this SECTION for that assessment date, the
county auditor shall issue a refund of the property tax paid by the
entity. An entity is not required to apply for any refund due under
this SECTION. The county auditor shall, without an appropriation
being required, issue a warrant to the entity payable from the
county general fund for the amount of the refund, if any, due the
entity. No interest is payable on the refund.
(f) This SECTION expires January 1, 2009.
SECTION 8. [EFFECTIVE UPON PASSAGE] IC 6-1.1-10-16, as
amended by this act, applies only to property taxes first due and
payable after 2007.
SECTION 9. An emergency is declared for this act.
Date: