Introduced Version






HOUSE BILL No. 1065

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 36-4-3-4.1.

Synopsis: Property taxation of annexed agricultural land. Provides that certain property annexed by a municipality with the consent of the property owner is exempt from property tax liability for municipal purposes if the property is assessed as agricultural property under the rules of the department of local government finance.

Effective: January 1, 2011 (retroactive).





Reske




    January 5, 2011, read first time and referred to Committee on Local Government.







Introduced

First Regular Session 117th General Assembly (2011)


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 2010 Regular Session of the General Assembly.

HOUSE BILL No. 1065



    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 36-4-3-4.1; (11)IN1065.1.1. -->     SECTION 1. IC 36-4-3-4.1, AS AMENDED BY P.L.71-2006, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2011 (RETROACTIVE)]: Sec. 4.1. (a) The legislative body of a municipality may, by ordinance, annex territory that:
        (1) is contiguous to the municipality;
        (2) in the case of a town having a population of more than:
            (A) fifteen thousand (15,000); or
            (B) five thousand (5,000) but less than six thousand three hundred (6,300);
        located in a county having a population of more than one hundred thousand (100,000) but less than one hundred five thousand (105,000), has its entire area within the township within which the town is primarily located; and
        (3) is owned by a property owner who consents to the annexation.
    (b) Subject to subsection (c), property located in territory annexed under this section:
         (1) is exempt from all property tax liability under IC 6-1.1 for

municipal purposes for all portions of the annexed territory that are if the property:
             (A) is classified for zoning purposes as agricultural; or
            (B) if clause (A) does not apply, is assessed as agricultural property under the rules of the department of local government finance;
and remain
         (2) remains exempt from the property tax liability while:
             (A) the property's zoning classification remains agricultural; However, or
             (B) if clause (A) does not apply, the property is assessed as agricultural property under the rules of the department of local government finance.
    (c)
If the annexation ordinance annexing the territory is adopted after June 30, 2006, the property tax liability under IC 6-1.1 for municipal purposes may be exempted for a period of not more than ten (10) years.
    (c) (d) There may not be a change in the zoning classification of territory annexed under this section without the consent of the owner of the annexed territory.
    (d) (e) Territory annexed under this section may not be considered a part of the municipality for purposes of annexing additional territory under section 3 or 4 of this chapter. However, territory annexed under this section shall be considered a part of the municipality for purposes of annexing additional territory under section 5 or 5.1 of this chapter.
     (f) Subject to subsection (g), property that would have been exempt under subsection (b), as amended by legislation enacted during the 2011 session of the general assembly, from all property tax liability under IC 6-1.1 for municipal purposes if the amendments to subsection (b) made by legislation enacted during the 2011 session of the general assembly had been in effect when the ordinance annexing the territory in which the property is located was adopted:
        (1) is exempt from all property tax liability under IC 6-1.1 for municipal purposes for property taxes first due and payable in 2012; and
        (2) remains
exempt from the property tax liability while the property is assessed as agricultural property under the rules of the department of local government finance.
     (g) If the ordinance annexing the territory in which property referred to in subsection (f) is located is adopted after June 30, 2010, the exemption under subsection (f) applies:
        (1) for not more than ten (10) years; or



        (2) until the property is no longer exempt under subsection (b);
whichever occurs first.

SOURCE: ; (11)IN1065.1.2. -->     SECTION 2. [EFFECTIVE JANUARY 1, 2011 (RETROACTIVE)] (a) IC 36-4-3-4.1, as amended by this act, applies only to property taxes first due and payable after December 31, 2011.
     (b) This SECTION expires January 1, 2013.
SOURCE: ; (11)IN1065.1.3. -->     SECTION 3. An emergency is declared for this act.