Citations Affected:
IC 6-1.1-10-16.
Synopsis: Nonprofit organization property tax exemptions. Provides
that property owned by a religious or charitable organization that: (1)
is occupied by a lessee, life tenant, or trust beneficiary; and (2)
generates income for the religious or charitable organization; is not
exempt from the property tax.
Effective: July 1, 2002.
January 15, 2002, read first time and referred to Committee on Ways and Means.
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
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.
(n) Property referred to in this section shall be assessed to the extent
required under
IC 6-1.1-11-9.
(o) Except as provided in section 18.5 of this chapter, this
section does not exempt from property tax a building or tract of
land that is:
(1) owned by, or held in trust for the use of, a:
(A) church;
(B) religious society;
(C) charitable organization; or
(D) nonprofit corporation or association;
(2) occupied by a:
(A) lessee;
(B) life tenant; or
(C) beneficiary of a trust described in subdivision (1); and
(3) used to produce income for the religious or charitable
organization.