CHAPTER 10. EXEMPTIONS
IC 6-1.1-10
Chapter 10. Exemptions
IC 6-1.1-10-1
United States property
Sec. 1. (a) The property of the United States and its agencies andinstrumentalities is exempt from property taxation to the extent thatthis state is prohibited by law from taxing it. However, any interestin tangible property of the United States shall be assessed and taxedto the extent this state is not prohibited from taxing it by theConstitution of the United States.
(b) If the United States provides for the payment of money in lieuof property taxes upon tangible property which is exempt fromtaxation, the payment shall be made to and settled by the departmentof local government finance. The department of local governmentfinance may make appraisements, assessments, and agreements andmay do all acts necessary to the ascertainment, settlement, andcollection of such a payment. The department of local governmentfinance may distribute amounts so received to the taxing units thatwould be entitled to the money if the payment were for taxes uponthe property. However, if the payment is made by the United Statesfor the rendition of a particular service, the department of localgovernment finance shall distribute the payment to the taxing unitwhich rendered the service. Where payment is made for a service, thedepartment of local government finance may not make a settlementwith the United States without the prior approval of the taxing unitinvolved.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.90-2002,SEC.99.
IC 6-1.1-10-2
State property
Sec. 2. Except as otherwise provided by law, the property ownedby this state, a state agency, or the bureau of motor vehiclescommission is exempt from property taxation.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.2-1991,SEC.34.
IC 6-1.1-10-3
Bridges and tangible appurtenant property
Sec. 3. (a) A bridge, including the tangible property appurtenantto it, is exempt from property taxation if:
(1) the bridge is constructed:
(i) entirely within this state and across a navigable stream; or
(ii) across a stream forming a boundary of this state;
(2) the bridge is owned by a state or a political subdivision ofa state; and
(3) the bridge:
(i) is (except as provided in subsection (b) of this section)operated free of tolls; or (ii) was authorized or consented to by an act of congress.
(b) The exemption provided in this section may not be deniedbecause tolls are charged if the tolls are levied:
(1) to establish a sinking fund for the cost, including interestand other financing charges, of the bridge and its approaches;or
(2) to provide for the proper maintenance, repair, and operationof the bridge and its approaches.
(Formerly: Acts 1975, P.L.47, SEC.1.)
IC 6-1.1-10-4
Political subdivision property
Sec. 4. Except as otherwise provided by law, the property ownedby a political subdivision of this state is exempt from propertytaxation.
(Formerly: Acts 1975, P.L.47, SEC.1.)
IC 6-1.1-10-5
Municipal property
Sec. 5. (a) Property is exempt from property taxation if it is ownedby a city or town and is used to provide a municipal service.
(b) For purposes of this section, property used to provide amunicipal service includes:
(1) a public school or library;
(2) a municipally owned park, golf course, playground,swimming pool, hospital, waterworks, electric utility, gas orheating plant, sewage treatment or disposal plant, cemetery,auditorium, or gymnasium; and
(3) any other municipally owned property, utility, or institution.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1977,P.L.2, SEC.15.
IC 6-1.1-10-5.5
Urban homesteading property
Sec. 5.5. Real property held under IC 36-7-17, which is conveyedby contract with retention of the deed by the city is deemed to be theproperty of the city held for municipal purposes and is exempt fromproperty taxation.
(Formerly: Acts 1975, P.L.195, SEC.4.) As amended by Acts 1981,P.L.11, SEC.22.
IC 6-1.1-10-6
Municipally owned water company property
Sec. 6. (a) Property which is owned by a domestic corporation ofthis state is exempt from property taxation if:
(1) the corporation owns a water system or waterworks;
(2) the corporation is, pursuant to a contract, supplying its entireoutput of water at wholesale rates to a city or town of this state;and
(3) the city or town which receives the water owns at least
ninety-five percent (95%) of the corporation's capital stock.
(b) For purposes of this section, stock is preferred stock and notcapital stock if:
(1) fixed dividends are payable to the stock owner at a rate notto exceed six percent (6%) per year; and
(2) the stock owner has no further right to participate in theprofits of the corporation.
(Formerly: Acts 1975, P.L.47, SEC.1.)
IC 6-1.1-10-7
Nonprofit water companies
Sec. 7. Property is exempt from property taxation if it is owned bya non-profit corporation which is engaged in the sale and distributionof water. However, this exemption only applies if the corporation isoperated on a not-for-profit basis.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.65-1983,SEC.1.
IC 6-1.1-10-8
Nonprofit sewage disposal company
Sec. 8. Property is exempt from property taxation if it is owned bya non-profit corporation which is engaged in a sewage disposalservice within a rural area of this state. However, this exemption onlyapplies if the corporation is operated on a not-for-profit basis.
(Formerly: Acts 1975, P.L.47, SEC.1.)
IC 6-1.1-10-9
Industrial waste control facilities
Sec. 9. (a) For purposes of this section, "industrial waste controlfacility" means personal property which is:
(1) included either as a part of or an adjunct to a privatelyowned manufacturing or industrial plant or coal miningoperation; and
(2) used predominantly to:
(A) prevent, control, reduce, or eliminate pollution of astream or a public body of water located within or adjoiningthis state by treating, pretreating, stabilizing, isolating,collecting, holding, controlling, or disposing of waste orcontaminants generated by the plant; or
(B) meet state or federal reclamation standards for a coalmining operation.
The term includes personal property that is under construction or inthe process of installation and that will be used for the purposesdescribed in this subsection when placed in service. The term alsoincludes spare parts held exclusively for installation in or as part ofpersonal property that qualifies for the exemption under this section.
(b) An industrial waste control facility is exempt from propertytaxation if it is not used in the production of property for sale.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1977,P.L.2, SEC.16; P.L.79-1987, SEC.1; P.L.41-1993, SEC.8.
IC 6-1.1-10-10
Industrial waste control facilities; claiming exemptions;investigations; determinations of department
Sec. 10. (a) The owner of an industrial waste control facility whowishes to obtain the exemption provided in section 9 of this chaptershall file an exemption claim along with the owner's annual personalproperty return. The claim shall describe and state the assessed valueof the property for which an exemption is claimed.
(b) The owner shall, by registered or certified mail, forward acopy of the exemption claim to the department of environmentalmanagement. The department shall acknowledge its receipt of theclaim.
(c) The department of environmental management may investigateany claim. The department may also determine if the property forwhich the exemption is claimed is being utilized as an industrialwaste control facility. Within one hundred twenty (120) days after aclaim is mailed to the department, the department may certify itswritten determination to the township or county assessor with whomthe claim was filed.
(d) The determination of the department remains in effect:
(1) as long as the owner owns the property and uses theproperty as an industrial waste control facility; or
(2) for five (5) years;
whichever is less. In addition, during the five (5) years after thedepartment's determination the owner of the property must notify thecounty assessor and the department in writing if any of the propertyon which the department's determination was based is disposed of orremoved from service as an industrial waste control facility.
(e) The department may revoke a determination if the departmentfinds that the property is not predominantly used as an industrialwaste control facility.
(f) The township or county assessor, in accord with thedetermination of the department, shall allow or deny in whole or inpart each exemption claim. However, if the owner provides theassessor with proof that a copy of the claim has been mailed to thedepartment, and if the department has not certified a determinationto the assessor within one hundred twenty (120) days after the claimhas been mailed to the department, the assessor shall allow the totalexemption claimed by the owner.
(g) The assessor shall reduce the assessed value of the owner'spersonal property for the year for which an exemption is claimed bythe amount of exemption allowed.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.143-1985,SEC.183; P.L.80-1987, SEC.1; P.L.41-1993, SEC.9; P.L.146-2008,SEC.104.
IC 6-1.1-10-11
Industrial waste control facilities; appeal of exemption claims
Sec. 11. A determination by the department of environmentalmanagement under section 10 of this chapter may be appealed by the
property owner to the circuit court of the county in which theproperty is located. The court shall try the appeal without a jury.Either party may appeal the circuit court's decision in the samemanner that other civil cases may be appealed.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.143-1985,SEC.184.
IC 6-1.1-10-12
Stationary or unlicensed mobile air pollution control system
Sec. 12. (a) Personal property is exempt from property taxation if:
(1) it is part of a stationary or unlicensed mobile air pollutioncontrol system of a private manufacturing, fabricating,assembling, extracting, mining, processing, generating, refining,or other industrial facility;
(2) it is not primarily used in the production of property forsale;
(3) it is employed predominantly in the operation of the airpollution control system;
(4) the air pollution control system is designed and used for theimprovement of public health and welfare by the prevention orelimination of air contamination caused by industrial waste orcontaminants;
(5) a sanitary treatment or elimination service for the waste orcontaminants is not provided by public authorities; and
(6) it is acquired for the purpose of complying with any state,local, or federal environmental quality statutes, regulations, orstandards.
(b) The property that is exempt under this section includes thefollowing personal property:
(1) Personal property that is under construction or in the processof installation and that will be used for the purposes describedin subsection (a) when placed in service.
(2) Spare parts held exclusively for installation in or as part ofpersonal property that qualifies for the exemption under thissection.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1980,P.L.37, SEC.1; P.L.41-1993, SEC.10.
IC 6-1.1-10-13
Stationary or unlicensed mobile air pollution control system; claimfor exemption
Sec. 13. (a) The owner of personal property which is part of astationary or unlicensed mobile air pollution control system whowishes to obtain the exemption provided in section 12 of this chaptershall claim the exemption on the owner's annual personal propertyreturn. On the return, the owner shall describe and state the assessedvalue of the property for which the exemption is claimed.
(b) The township or county assessor shall:
(1) review the exemption claim; and
(2) allow or deny it in whole or in part.In making the decision, the township or county assessor shallconsider the requirements stated in section 12 of this chapter.
(c) The township or county assessor shall reduce the assessedvalue of the owner's personal property for the year for which theexemption is claimed by the amount of exemption allowed.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1980,P.L.37, SEC.2; P.L.146-2008, SEC.105.
IC 6-1.1-10-14
Industrial waste control facility; stationary air purification system;action on exemption claim treated as assessment
Sec. 14. The action taken by a township or county assessor on anexemption claim filed under section 10 or 13 of this chapter shall betreated as an assessment of personal property. Thus, the assessor'saction is subject to all the provisions of this article pertaining tonotice, review, or appeal of personal property assessments.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.146-2008,SEC.106.
IC 6-1.1-10-15
Public airports
Sec. 15. (a) The acquisition and improvement of land for use bythe public as an airport and the maintenance of commercialpassenger aircraft is a municipal purpose regardless of whether theairport or maintenance facility is owned or operated by amunicipality. The owner of any airport located in this state, whoholds a valid and current public airport certificate issued by theIndiana department of transportation, may claim an exemption foronly so much of the land as is reasonably necessary to and used forpublic airport purposes. A person maintaining commercial passengeraircraft in a county having a population of more than two hundredthousand (200,000) but less than four hundred thousand (400,000)may claim an exemption for commercial passenger aircraft notsubject to the aircraft excise tax under IC 6-6-6.5 that is beingassessed under this article, if it is located in the county only for thepurposes of maintenance.
(b) The exemption provided by this section is noncumulative andapplies only to property that would not otherwise be exempt. Nothingcontained in this section applies to or affects any other tax exemptionprovided by law.
(c) As used in this section, "land used for public airport purposes"includes the following:
(1) That part of airport land used for the taking off or landing ofaircraft, taxiways, runway and taxiway lighting, access roads,auto and aircraft parking areas, and all buildings providingbasic facilities for the traveling public.
(2) Real property owned by the airport owner and used directlyfor airport operation and maintenance purposes.
(3) Real property used in providing for the shelter, storage, orcare of aircraft, including hangars. (4) Housing for weather and signaling equipment, navigationalaids, radios, or other electronic equipment.
The term does not include land areas used solely for purposesunrelated to aviation.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1980,P.L.74, SEC.15; P.L.77-1989, SEC.1; P.L.18-1990, SEC.18;P.L.126-2000, SEC.3.
IC 6-1.1-10-15.5
Commercial passenger aircraft; resolution required; tenancy anduse requirement; term of exemption
Sec. 15.5. (a) As used in this section, "airport development zone"means an airport development zone designated under IC 8-22-3.5-5.
(b) As used in this section, "allocated tax proceeds" refers toproperty taxes allocated under IC 8-22-3.5-9.
(c) As used in this section, "commission" has the meaning setforth in IC 8-22-3.5-2.
(d) As used in this section, "qualified airport developmentproject" has the meaning set forth in IC 8-22-3.5-3.
(e) Before a person maintaining commercial passenger aircraftthat is not subject to the aircraft excise tax under IC 6-6-6.5 mayclaim an exemption from property taxation for the commercialpassenger aircraft, the commission must adopt a resolutionauthorizing the exemption for the commercial passenger aircraft.
(f) After the commission adopts a resolution described insubsection (e), a person maintaining a commercial passenger aircraftthat is not subject to the aircraft excise tax under IC 6-6-6.5 mayclaim an exemption from property taxation for the commercialpassenger aircraft if the following conditions exist when thecommission adopts the resolution:
(1) The person is:
(A) a tenant or subtenant of any portion of the qualifiedairport development project; and
(B) a current user of all or any portion of the qualifiedairport development project.
(2) For purposes of maintenance, the aircraft will be located inthe airport development zone.
(3) If bonds have been issued, either:
(A) the pledge of allocated tax proceeds to the payment ofany bonds issued under IC 8-22-3-18.1 to finance anyportion of the costs of the qualified airport developmentproject has been discharged; or
(B) any bonds to which allocated tax proceeds were pledgedhave been paid in full in accordance with the documentsunder which the bonds were issued.
If this subdivision applies, the person may not claim theexemption for a period longer than the original term of thebonds.
As added by P.L.224-2003, SEC.266.
IC 6-1.1-10-16
Exemption of building, land, and personal property used forvarious purposes; termination of eligibility for exemption
Sec. 16. (a) All or part of a building is exempt from propertytaxation if it is owned, occupied, and used by a person foreducational, literary, scientific, religious, or charitable purposes.
(b) A building is exempt from property taxation if it is owned,occupied, and used by a town, city, township, or county foreducational, literary, scientific, fraternal, or charitable purposes.
(c) A tract of land, including the campus and athletic grounds ofan educational institution, is exempt from property taxation if:
(1) a building that is exempt under subsection (a) or (b) issituated on it;
(2) a parking lot or structure that serves a building referred to insubdivision (1) is situated on it; or
(3) the tract:
(A) is owned by a nonprofit entity established for thepurpose of retaining and preserving land and water for theirnatural characteristics;
(B) does not exceed five hundred (500) acres; and
(C) is not used by the nonprofit entity to make a profit.
(d) A tract of land is exempt from property taxation if:
(1) it is purchased for the purpose of erecting a building that isto be owned, occupied, and used in such a manner that thebuilding will be exempt under subsection (a) or (b); and
(2) not more than four (4) years after the property is purchased,and for each year after the four (4) year period, the ownerdemonstrates substantial progress and active pursuit towards theerection of the intended building and use of the tract for theexempt purpose. To establish substantial progress and activepursuit under this subdivision, the owner must prove theexistence of factors such as the following:
(A) Organization of and activity by a building committee orother oversight group.
(B) Completion and filing of building plans with theappropriate local government authority.
(C) Cash reserves dedicated to the project of a sufficientamount to lead a reasonable individual to believe the actualconstruction can and will begin within four (4) years.
(D) The breaking of ground and the beginning of actualconstruction.
(E) Any other factor that would lead a reasonable individualto believe that construction of the building is an active planand that the building is capable of being completed withineight (8) years considering the circumstances of the owner.
If the owner of the property sells, leases, or otherwise transfers atract of land that is exempt under this subsection, the owner is liablefor the property taxes that were not imposed upon the tract of landduring the period beginning January 1 of the fourth year followingthe purchase of the property and ending on December 31 of the year
of the sale, lease, or transfer. The county auditor of the county inwhich the tract of land is located may establish an installment planfor the repayment of taxes due under this subsection. The planestablished by the county auditor may allow the repayment of thetaxes over a period of years equal to the number of years for whichproperty taxes must be repaid under this subsection.
(e) Personal property is exempt from property taxation if it isowned and used in such a manner that it would be exempt undersubsection (a) or (b) if it were a building.
(f) A hospital's property that is exempt from property taxationunder subsection (a), (b), or (e) shall remain exempt from propertytaxation even if the property is used in part to furnish goods orservices to another hospital whose property qualifies for exemptionunder this section.
(g) Property owned by a shared hospital services organization thatis exempt from federal income taxation under Section 501(c)(3) or501(e) of the Internal Revenue Code is exempt from propertytaxation if it is owned, occupied, and used exclusively to furnishgoods or services to a hospital whose property is exempt fromproperty taxation under subsection (a), (b), or (e).
(h) This section does not exempt from property tax an office or apractice of a physician or group of physicians that is owned by ahospital licensed under IC 16-21-1 or other property that is notsubstantially related to or supportive of the inpatient facility of thehospital unless the office, practice, or other property:
(1) provides or supports the provision of charity care (asdefined in IC 16-18-2-52.5), including providing funds or otherfinancial support for health care services for individuals whoare indigent (as defined in IC 16-18-2-52.5(b) andIC 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, orgovernment sponsored indigent health care (as defined inIC 16-21-9-2).
However, participation in the Medicaid or Medicare program alonedoes not entitle an office, practice, or other property described in thissubsection to an exemption under this section.
(i) A tract of land or a tract of land plus all or part of a structureon 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 begiven 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 astructure on the land is not used for profit while exempt under
this section; and
(4) not more than four (4) years after the property is acquiredfor the purpose described in subdivision (1), and for each yearafter the four (4) year period, the owner demonstratessubstantial progress and active pursuit towards the erection,renovation, or improvement of the intended structure. Toestablish substantial progress and active pursuit under thissubdivision, the owner must prove the existence of factors suchas the following:
(A) Organization of and activity by a building committee orother oversight group.
(B) Completion and filing of building plans with theappropriate local government authority.
(C) Cash reserves dedicated to the project of a sufficientamount to lead a reasonable individual to believe the actualconstruction can and will begin within five (5) years of theinitial exemption received under this subsection.
(D) The breaking of ground and the beginning of actualconstruction.
(E) Any other factor that would lead a reasonable individualto believe that construction of the structure is an active planand that the structure is capable of being:
(i) completed; and
(ii) transferred to a low income individual who does notreceive an exemption under this section;
within eight (8) years considering the circumstances of theowner.
(j) An exemption under subsection (i) terminates when theproperty is conveyed by the nonprofit organization to another owner.When the property is conveyed to another owner, the nonprofitorganization receiving the exemption must file a certified statementwith the auditor of the county, notifying the auditor of the change notlater than sixty (60) days after the date of the conveyance. Thecounty auditor shall immediately forward a copy of the certifiedstatement to the county assessor. A nonprofit organization that failsto file the statement required by this subsection is liable for theamount of property taxes due on the property conveyed if it were notfor the exemption allowed under this chapter.
(k) If property is granted an exemption in any year undersubsection (i) and the owner:
(1) ceases to be eligible for the exemption under subsection(i)(4);
(2) fails to transfer the tangible property within eight (8) yearsafter the assessment date for which the exemption is initiallygranted; 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 forat 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 locatednot later than sixty (60) days after the event described in subdivision(1), (2), or (3) occurs. The county auditor shall immediately informthe county assessor of a notification received under this subsection.
(l) If subsection (k)(1), (k)(2), or (k)(3) applies, the owner shallpay, not later than the date that the next installment of property taxesis due, an amount equal to the sum of the following:
(1) The total property taxes that, if it were not for the exemptionunder subsection (i), would have been levied on the property ineach 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 theproperty receiving the exemption under subsection (i). An amountcollected under subsection (l) shall be collected as an excess levy. Ifthe amount is not paid, it shall be collected in the same manner thatdelinquent taxes on real property are collected.
(n) Property referred to in this section shall be assessed to theextent required under IC 6-1.1-11-9.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1979,P.L.51, SEC.1; P.L.74-1987, SEC.4; P.L.57-1993, SEC.7;P.L.25-1995, SEC.13; P.L.6-1997, SEC.35; P.L.2-1998, SEC.17;P.L.126-2000, SEC.4; P.L.198-2001, SEC.28; P.L.264-2003, SEC.1;P.L.196-2007, SEC.1.
IC 6-1.1-10-16.5
Nonprofit corporation property located under or adjacent to lakeor reservoir
Sec. 16.5. (a) This section applies to real property located in thefollowing:
(1) A county having a population of more than twenty thousand(20,000) but less than twenty thousand three hundred (20,300).
(2) A county having a population of more than twenty-fivethousand (25,000) but less than twenty-five thousand fivehundred (25,500).
(b) A tract of real property owned by a nonprofit public benefitcorporation (as defined in IC 23-17-2-23) is exempt from propertytaxation if all of the following apply:
(1) The tract is located:
(A) under a lake or reservoir; or
(B) adjacent to a lake or reservoir.
(2) The lake or reservoir under which or adjacent to which thetract is located was formed by a dam or control structure ownedand operated by a public utility for the generation ofhydroelectric power.
(3) The public benefit corporation that owns the tract is exemptfrom federal income taxation under Section 501(c)(3) of theInternal Revenue Code and has maintained its tax exempt statusfor the previous three (3) years.
(4) The public benefit corporation that owns the tract is
primarily engaged in active efforts to protect and enhance theenvironment and water quality of the lake or reservoir underwhich or adjacent to which the tract is located in order tofacilitate the public recreational use of the lake or reservoir.
(c) A tract of real property owned by a nonprofit public benefitcorporation described in subsection (b) is exempt from propertytaxation if the tract is used by the public benefit corporation in thepublic benefit corporation's efforts to enhance the environment andwater quality of a lake or reservoir described in subsection (b).
As added by P.L.2-1999, SEC.1. Amended by P.L.170-2002, SEC.16.
IC 6-1.1-10-16.7
Real property
Sec. 16.7. All or part of real property is exempt from propertytaxation if:
(1) the improvements on the real property were constructed,rehabilitated, or acquired for the purpose of providing housingto income eligible persons under the federal low incomehousing tax credit program under 26 U.S.C. 42;
(2) the real property is subject to an extended use agreementunder 26 U.S.C. 42 as administered by the Indiana housing andcommunity development authority; and
(3) the owner of the property has entered into an agreement tomake payments in lieu of taxes under IC 36-1-8-14.2,IC 36-2-6-22, or IC 36-3-2-11.
As added by P.L.19-2000, SEC.1. Amended by P.L.185-2001, SEC.1and P.L.291-2001, SEC.195; P.L.186-2001, SEC.2; P.L.1-2002,SEC.18; P.L.179-2002, SEC.3; P.L.1-2006, SEC.133 andP.L.181-2006, SEC.42.
IC 6-1.1-10-17
Memorial corporation property
Sec. 17. Tangible property is exempt from property taxation if itis owned by a corporation which is organized and operated underIC 10-18-7 for the purpose of perpetuating the memory of soldiersand sailors.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1977,P.L.2, SEC.17; P.L.2-2003, SEC.35.
IC 6-1.1-10-18
Nonprofit corporations supporting fine arts
Sec. 18. (a) Tangible property is exempt from property taxationif it is owned by an Indiana not-for-profit corporation which isorganized and operated for the primary purpose of coordinating,promoting, encouraging, housing, or providing financial support toactivities in the field of fine arts.
(b) For purposes of this section, the field of fine arts includes, butis not limited to, the following art forms:
(1) classical, semi-classical, or modern instrumental and vocalmusic; (2) classical dance, including ballet, modern adaptations of formaldance, and ethnic dance;
(3) painting, drawing, and the graphic arts;
(4) sculpture;
(5) architecture;
(6) drama and musical theater.
(Formerly: Acts 1975, P.L.47, SEC.1.)
IC 6-1.1-10-18.5
Nonprofit corporation property used in operation of health facilityor home for the aged
Sec. 18.5. (a) This section does not exempt from property tax anoffice or a practice of a physician or group of physicians that isowned by a hospital licensed under IC 16-21-1 or other property thatis not substantially related to or supportive of the inpatient facility ofthe hospital unless the office, practice, or other property:
(1) provides or supports the provision of charity care (asdefined in IC 16-18-2-52.5), including funds or other financialsupport 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, orgovernment sponsored indigent health care (as defined inIC 16-21-9-2).
However, participation in the Medicaid or Medicare program, alone,does not entitle an office, a practice, or other property described inthis subsection to an exemption under this section.
(b) Tangible property is exempt from property taxation if it is:
(1) owned by an Indiana nonprofit corporation; and
(2) used by that corporation in the operation of a hospitallicensed under IC 16-21, a health facility licensed underIC 16-28, or in the operation of a residential facility for the agedand licensed under IC 16-28, or in the operation of a ChristianScience home or sanatorium.
(c) Property referred to in this section shall be assessed to theextent required under IC 6-1.1-11-9.
As added by Acts 1978, P.L.30, SEC.1. Amended by Acts 1982,P.L.29, SEC.2; P.L.66-1983, SEC.1; P.L.2-1993, SEC.53;P.L.25-1995, SEC.14; P.L.198-2001, SEC.29.
IC 6-1.1-10-19
Public libraries
Sec. 19. Tangible property is exempt from property taxation if itis:
(1) owned by a corporation which has established a public libraryunder Indiana law; and
(2) used exclusively for public library purposes.
(Formerly: Acts 1975, P.L.47, SEC.1.)
IC 6-1.1-10-20 Manual labor, technical, or trade schools; colleges
Sec. 20. Tangible property is exempt from property taxation if itis:
(1) owned by a manual labor school, a technical high school, atrade school, or a college which is incorporated within thisstate; and
(2) used, and in the case of real property actually occupied, forthe purpose for which the institution is incorporated.
However, the institution's real property which is exempt fromtaxation under this section may not exceed eight hundred (800) acresin any one (1) county of this state.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1977,P.L.2, SEC.18.
IC 6-1.1-10-21
Churches or religious societies
Sec. 21. (a) The following tangible property is exempt fromproperty taxation if it is owned by, or held in trust for the use of, achurch or religious society:
(1) A building that is used for religious worship.
(2) The pews and furniture contained within a building that isused for religious worship.
(3) The tract of land upon which a building that is used forreligious worship is situated.
(b) The following tangible property is exempt from propertytaxation if it is owned by, or held in trust for the use of, a church orreligious society:
(1) A building that is used as a parsonage.
(2) The tract of land, not exceeding fifteen (15) acres, uponwhich a building that is used as a parsonage is situated.
(c) To obtain an exemption for parsonages, a church or religioussociety must provide the county assessor with an affidavit at the timethe church or religious society applies for the exemptions. Theaffidavit must state that:
(1) all parsonages are being used to house one (1) of thechurch's or religious society's rabbis, priests, preachers,ministers, or pastors; and
(2) none of the parsonages are being used to make a profit.
The affidavit shall be signed under oath by the church's or religioussociety's head rabbi, priest, preacher, minister, or pastor.
(d) Property referred to in this section shall be assessed to theextent required under IC 6-1.1-11-9.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1981,P.L.68, SEC.1; P.L.74-1987, SEC.5; P.L.198-2001, SEC.30;P.L.264-2003, SEC.2.
IC 6-1.1-10-22
Dormitories of church colleges and universities
Sec. 22. A tract of land, not exceeding one (1) acre, and theimprovements situated on the land are exempt from property taxation
if they are:
(1) owned by a church; and
(2) exclusively used by the church as a dormitory for the studentsof a college or university which is located within this state.
(Formerly: Acts 1975, P.L.47, SEC.1.)
IC 6-1.1-10-23
Fraternal benefit associations
Sec. 23. (a) Subject to the limitations contained in subsection (b)of this section, tangible property is exempt from property taxation ifit is owned by a fraternal beneficiary association which isincorporated, organized, or licensed under the laws of this state.
(b) This exemption does not apply to real property unless it isactually occupied and exclusively used by the association in carryingout the purpose for which it was incorporated, organized, or licensed.
(Formerly: Acts 1975, P.L.47, SEC.1.)
IC 6-1.1-10-24
College fraternities or sororities
Sec. 24. (a) Subject to the limitations contained in subsection (b)of this section, the following tangible property is exempt fromproperty taxation if it is owned by a fraternity or sorority:
(1) a tract of land not exceeding one (1) acre;
(2) the improvements situated on the tract of land; and
(3) all personal property.
(b) This exemption does not apply unless:
(1) the fraternity or sorority is connected with, and under thesupervision of, a college, university, or other educationalinstitution; and
(2) the property is used exclusively by the fraternity or sororityto carry out its purpose.
(Formerly: Acts 1975, P.L.47, SEC.1.)
IC 6-1.1-10-25
Miscellaneous organizations
Sec. 25. (a) Subject to the limitations contained in subsection (b)of this section, tangible property is exempt from property taxation ifit is owned by any of the following organizations:
(1) The Young Men's Christian Association.
(2) The Salvation Army, Inc.
(3) The Knights of Columbus.
(4) The Young Men's Hebrew Association.
(5) The Young Women's Christian Association.
(6) A chapter or post of Disabled American Veterans of WorldWar I or II.
(7) A chapter or post of the Veterans of Foreign Wars.
(8) A post of the American Legion.
(9) A post of the American War Veterans.
(10) A camp of United States Spanish War Veterans.
(11) The Boy Scouts of America, one (1) or more of its
incorporated local councils, or a bank or trust company in trustfor the benefit of one (1) or more of its local councils.
(12) The Girl Scouts of the U.S.A., one or more of itsincorporated local councils, or a bank or trust company in trustfor the benefit of one (1) or more of its local councils.
(b) This exemption does not apply unless the property isexclusively used, and in the case of real property actually occupied,for the purposes and objectives of the organization.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1977,P.L.66, SEC.1; Acts 1980, P.L.38, SEC.1; P.L.67-1983, SEC.1.
IC 6-1.1-10-26
County or district agricultural associations
Sec. 26. (a) Subject to the limitations contained in subsection (b)of this section, the following tangible property is exempt fromproperty taxation if it is owned by a county or district agriculturalassociation of this state:
(1) a tract of land not exceeding eighty (80) acres; and
(2) the improvements situated on the tract of land.
(b) This exemption does not apply unless:
(1) the association is organized under IC 1971, 15-1-3; and
(2) the property is exclusively used and occupied for the purposesspecified in IC 1971, 15-1-3.
(Formerly: Acts 1975, P.L.47, SEC.1.)
IC 6-1.1-10-27
Cemetery corporations
Sec. 27. (a) Subject to the limitations contained in subsections (b)and (c) the following tangible property is exempt from propertytaxation if it is owned by a cemetery corporation, firm, or associationwhich is organized under the laws of this state:
(1) The real property, including mausoleums and otherstructures in which human remains are buried or interred butnot including crematories, funeral homes, offices, ormaintenance structures. However, offices and maintenancestructures are exempt if they are owned by, or held in trust forthe use of, a church or religious society, or if they are owned bya not-for-profit corporation or association.
(2) The personal property which is used exclusively in theestablishment, operation, administration, preservation, repair,or maintenance of the cemetery.
(b) The exemption under subsection (a) does not apply to realproperty unless:
(1) it has been dedicated or platted for cemetery use;
(2) a plat of it has been recorded in the county in which theproperty is located; and
(3) it is exclusively used for cemetery or burial purposes.
(c) The exemption under subsection (a) does not apply to personalproperty unless it is used exclusively for cemetery purposes and:
(1) it is owned by, or held in trust for the use of, a church or
religious society; or
(2) it is owned by a not-for-profit corporation or association.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.74-1987,SEC.6; P.L.5-1988, SEC.42.
IC 6-1.1-10-28
Free medical clinics
Sec. 28. A building and the land on which the building is locatedare exempt from property taxation if:
(1) the building is used for the purpose of gratuitouslydispensing medicines and medical advice and aid to people; and
(2) the real property is owned by a corporation, institution, orassociation which exists exclusively for that charitable purpose.
(Formerly: Acts 1975, P.L.47, SEC.1.)
IC 6-1.1-10-29
Repealed
(Repealed by P.L.146-2008, SEC.800.)
IC 6-1.1-10-29.3
Repealed
(Repealed by P.L.146-2008, SEC.800.)
IC 6-1.1-10-29.5
Repealed
(Repealed by P.L.146-2008, SEC.800.)
IC 6-1.1-10-30
Repealed
(Repealed by P.L.146-2008, SEC.800.)
IC 6-1.1-10-30.5
Repealed
(Repealed by P.L.146-2008, SEC.800.)
IC 6-1.1-10-31
Repealed
(Repealed by P.L.11-1987, SEC.11.)
IC 6-1.1-10-31.1
Repealed
(Repealed by P.L.146-2008, SEC.800.)
IC 6-1.1-10-31.4
Repealed
(Repealed by P.L.146-2008, SEC.800.)
IC 6-1.1-10-31.5
Repealed
(Repealed by P.L.146-2008, SEC.800.)
IC 6-1.1-10-31.6
Repealed
(Repealed by P.L.146-2008, SEC.800.)
IC 6-1.1-10-31.7
Repealed
(Repealed by P.L.146-2008, SEC.800.)
IC 6-1.1-10-32
Certain exempt property under control of executor
Sec. 32. Tangible property is exempt from property taxation if it:
(1) is under the control of an executor;
(2) is to pass, under the terms of a will, to a municipal corporationor to a literary, scientific, benevolent, religious, or charitableinstitution; and
(3) would be exempt from property taxation if it had already beendistributed to the devisee or legatee.
(Formerly: Acts 1975, P.L.47, SEC.1.)
IC 6-1.1-10-33
Certain exempt property under control of executor or trustee
Sec. 33. (a) Tangible property which is under the control of anexecutor or a trustee is exempt from property taxation if it is to beused and applied:
(1) within this state for a municipal, educational, literary,scientific, religious, or charitable purpose; or
(2) for the benefit of this state or a state institution.
(b) Subsection (a) does not apply unless the executor or trusteediligently and in good faith carries out the provisions of the will ortrust agreement by using and applying the property for the intendedpurpose.
(Formerly: Acts 1975, P.L.47, SEC.1.)
IC 6-1.1-10-34
Contracts relating to certain exempt property; unenforceability
Sec. 34. (a) A contract is not valid or enforceable in any court ofthis state if:
(1) the contract is related to tangible property which is given,devised, or bequeathed to an educational, literary, scientific,religious, or charitable institution;
(2) the contract provides that the institution shall pay any incomeor proceeds received for the tangible property to the donor, or otherperson designated by the donor, for life or for a determinate periodof time; and
(3) the contract does not provide that all property taxes that thedonor would have paid if he had retained title to the property shall bepaid by:
(i) the donor;
(ii) the person, if any, designated by the donor to receive theincome or proceeds; or (iii) the institution.
(b) Tangible property transferred in the manner described insubsection (a) of this section is subject to property taxation to thesame extent as tangible property which is owned by an individual.
(c) This section does not apply to real property transferred undercontracts which were entered into before March 9, 1937.
(Formerly: Acts 1975, P.L.47, SEC.1.)
IC 6-1.1-10-35
School lands; when considered sold
Sec. 35. (a) For purposes of this chapter, school lands have beensold if:
(1) a certificate of sale has been issued to the purchaser orrecorded in the proper office;
(2) the purchaser has paid all or part of the purchase money; and
(3) the purchaser has or could have entered into possession of theland.
(b) If subsection (a) of this section is applicable, the land issubject to assessment and taxation in the same manner as if a deedhad been delivered to the purchaser.
(Formerly: Acts 1975, P.L.47, SEC.1.)
IC 6-1.1-10-36
Repealed
(Repealed by P.L.66-1983, SEC.3.)
IC 6-1.1-10-36.3
Property used or occupied for one or more stated purposes;applicability of exemption; limitations
Sec. 36.3. (a) For purposes of this section, property ispredominantly used or occupied for one (1) or more stated purposesif it is used or occupied for one (1) or more of those purposes duringmore than fifty percent (50%) of the time that it is used or occupiedin the year that ends on the assessment date of the property.
(b) The determination under subsection (c) of:
(1) the use or occupation of the property; and
(2) the application of an exemption;
applies separately to each part of the property identified underIC 6-1.1-11-3(c)(5).
(c) If a section of this chapter states one (1) or more purposes forwhich property must be used or occupied in order to qualify for anexemption, then the exemption applies as follows:
(1) Property that is exclusively used or occupied for one (1) ormore of the stated purposes is totally exempt under that section.
(2) Property that is predominantly used or occupied for one (1)or more of the stated purposes by a church, religious society, ornot-for-profit school is totally exempt under that section.
(3) Property that is predominantly used or occupied for one (1)or more of the stated purposes by a person other than a church,religious society, or not-for-profit school is exempt under that
section from property tax on the part of the assessment of theproperty that bears the same proportion to the total assessmentof the property as the amount of time that the property was usedor occupied for one (1) or more of the stated purposes duringthe year that ends on the assessment date of the property bearsto the amount of time that the property was used or occupied forany purpose during that year.
(4) Property that is predominantly used or occupied for apurpose other than one (1) of the stated purposes is not exemptfrom any part of the property tax.
(d) Property is not used or occupied for one (1) or more of thestated purposes during the time that a predominant part of theproperty is used or occupied in connection with a trade or businessthat is not substantially related to the exercise or performance of one(1) or more of the stated purposes.
As added by P.L.66-1983, SEC.2. Amended by P.L.264-2003, SEC.3.
IC 6-1.1-10-36.5
Property of exempt organization used in nonexempt trade orbusiness
Sec. 36.5. (a) Tangible property is not exempt from propertytaxation under sections 16 through 28 of this chapter or under section33 of this chapter if it is used by the exempt organization in a tradeor business, not substantially related to the exercise or performanceof the organization's exempt purpose.
(b) Property referred to in sections 16 through 28 of this chapteror under section 33 of this chapter shall be assessed to the extentrequired under IC 6-1.1-11-9.
(c) The department of local government finance shall adopt rulesunder IC 4-22-2 to carry out this section.
As added by Acts 1978, P.L.32, SEC.1. Amended by P.L.198-2001,SEC.31.
IC 6-1.1-10-37
Leases of exempt property; effect
Sec. 37. (a) This section does not apply to the lease of a dwellingunit within a public housing project by the tenant of that dwellingunit.
(b) If real property that is exempt from taxation is leased toanother whose property is not exempt and the leasing of the realproperty does not make it taxable, the leasehold estate and theappurtenances to the leasehold estate shall be assessed and taxed asif they were real property owned by the lessee or his assignee.
(c) If personal property that is exempt from taxation is leased toanother whose property is not exempt and the leasing of the personalproperty does not make it taxable, the leased personal property shallbe assessed and taxed as if it were personal property owned by thelessee or his assignee.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.42-1984,SEC.1; P.L.59-1986, SEC.1.
IC 6-1.1-10-38
Property tax exemption provisions; enumeration
Sec. 38. This chapter does not contain all of the property taxexemption provisions. The property taxation exemption provisionsinclude, but are not limited to, the following sections: IC 4-20.5-14-3 IC 21-35-2-19
IC 4-20.5-19 IC 21-35-3-20
IC 5-1-4-26 IC 20-47-2-21
IC 6-1.1-10-5 IC 20-47-3-15
IC 6-1.1-24-6.8(k) IC 23-7-7-3
IC 8-10-1-27 IC 36-1-10-18
IC 8-23-7-31 IC 36-7-14-37
IC 8-15-2-12 IC 36-7-15.1-25
IC 8-21-9-31 IC 36-7-18-25
IC 10-18-2-22 IC 36-9-4-52
IC 10-18-1-36 IC 36-9-11-10
IC 10-18-3-12 IC 36-9-11.1-11
IC 10-18-4-21 IC 36-9-13-36
IC 10-18-7-9 IC 36-9-13-37
IC 14-33-20-27 IC 36-9-30-31
IC 15-13-4-4 IC 36-10-8-18
IC 16-22-6-34 IC 36-10-9-18
IC 21-34-8-3
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.3-1990,SEC.23; P.L.20-1990, SEC.6; P.L.2-1993, SEC.54; P.L.7-1993,SEC.9; P.L.1-1994, SEC.25; P.L.1-1995, SEC.43; P.L.52-1997,SEC.3; P.L.2-2003, SEC.36; P.L.2-2006, SEC.36; P.L.2-2007,SEC.113; P.L.2-2008, SEC.21; P.L.98-2010, SEC.1.
IC 6-1.1-10-39
Intangible personal property exemptions
Sec. 39. Intangible personal property, including the following, isexempt from taxation under this article:
(1) A promissory note.
(2) A share of stock in a foreign corporation.
(3) A bond.
(4) A debenture.
(5) A postal savings certificate.
(6) Equity in a brokerage or trading account.
(7) A deposit of money.
(8) A loan account.
(9) A debt instrument with interest coupons.
(10) A registered corporate