Introduced Version
HOUSE BILL No. 1281
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-1.1-10-44; IC 6-1.2.
Synopsis: Property tax exemptions. Requires the department of local
government finance to adopt rules for determining whether property is
used for a charitable purpose. Requires payments in lieu of taxes
(PILOTS) on property exempt from property tax, except for certain
property used for governmental, educational, and religious purposes.
Effective: Upon passage; July 1, 2008.
January 15, 2008, read first time and referred to Committee on Ways and Means.
Introduced
Second Regular Session 115th General Assembly (2008)
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 2007 Regular Session of the General Assembly.
HOUSE BILL No. 1281
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-1.1-10-44; (08)IN1281.1.1. -->
SECTION 1. IC 6-1.1-10-44 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
Sec. 44. (a) For purposes of this section and
section 16 of this chapter, a charitable purpose exists if:
(1) there is substantial evidence that the property is used to
provide relief of human want;
(2) the charitable acts are different from the everyday
purposes and activities offered by noncharitable activities;
and
(3) a benefit will inure to the general public sufficient to
justify the loss of tax revenue.
(b) The department of local government finance shall adopt
rules under IC 4-22-2 for determining whether property is used for
a charitable purpose under section 16 of this chapter.
(c) The department of local government finance shall take into
account the following factors for rules adopted under this section:
(1) The availability of the same type of services provided by
the entity claiming a charitable property tax exemption as
services offered by a noncharitable entity.
(2) The ability of a beneficiary of services provided by a
charitable entity to pay for the same services from a
noncharitable entity.
(3) Whether charitable services provided by a charitable
entity are required as part of a continuum of care to a
beneficiary of the charitable entity.
(4) Any factor the department of local government finance
determines necessary to determine whether property is used
for a charitable purpose.
SOURCE: IC 6-1.2; (08)IN1281.1.2. -->
SECTION 2. IC 6-1.2 IS ADDED TO THE INDIANA CODE AS A
NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2008]:
ARTICLE 1.2. PAYMENTS IN LIEU OF TAXES
Chapter 1. Definitions
Sec. 1. The definitions in IC 6-1.1-1 apply throughout this
article.
Sec. 2. "PILOTS" refers to payments in lieu of taxes.
Chapter 2. Imposition of PILOTS
Sec. 1. Except as provided in section 2 of this chapter, PILOTS
are payable each calendar year with respect to tangible property
exempt from property taxes under IC 6-1.1.
Sec. 2. PILOTS are not payable with respect to:
(1) a building or structure that is exempt from property taxes:
(A) under:
(i) IC 6-1.1-10-1;
(ii) IC 6-1.1-10-2;
(iii) IC 6-1.1-10-3;
(iv) IC 6-1.1-10-4;
(v) IC 6-1.1-10-5;
(vi) IC 6-1.1-10-5.5;
(vii) IC 6-1.1-10-6;
(viii) IC 6-1.1-10-7;
(ix) IC 6-1.1-10-8;
(x) IC 6-1.1-10-15;
(xi) IC 6-1.1-10-17;
(xii) IC 6-1.1-10-19;
(xiii) IC 6-1.1-10-21; or
(xiv) IC 6-1.1-10-38; or
(B) under IC 6-1.1-10-16 and used:
(i) for educational purposes;
(ii) for religious worship; or
(iii) as a parsonage;
(2) personal property that is exempt from property taxes:
(A) under a section listed in subdivision (1)(A); or
(B) under IC 6-1.1-10-16 and used:
(i) for educational purposes; or
(ii) for religious worship; and
(3) land:
(A) that is exempt from property taxes under a section
listed in subdivision (1)(A);
(B) that is exempt from property taxes under
IC 6-1.1-10-16 and used for educational purposes; or
(C) on which a building or structure referred to in
subdivision (1) is located.
Sec. 3. PILOTS are imposed within each political subdivision
and are based on the assessed value of the tangible property
described in section 1 of this chapter. The county assessor shall
assess the property described in section 1 of this chapter as though
the property were not subject to an exemption.
Sec. 4. The amount of the PILOT is the greater of:
(1) one hundred dollars ($100); or
(2) one percent (1%) of the assessed value of the property that
is subject to a PILOT under this chapter.
Sec. 5. PILOTS:
(1) shall be collected and distributed in the same manner as
property taxes are collected and distributed;
(2) may be used for any purpose for which property taxes may
be used; and
(3) are otherwise treated in the same manner as property
taxes for purposes of all procedural and substantive
provisions of law.