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.





Saunders, Crawford




    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.
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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.
SOURCE: ; (08)IN1281.1.3. -->     SECTION 3. An emergency is declared for this act.