CHAPTER 11. EXEMPTION PROCEDURES
IC 6-1.1-11
Chapter 11. Exemption Procedures
IC 6-1.1-11-1
Waiver of exemption
Sec. 1. An exemption is a privilege which may be waived by aperson who owns tangible property that would qualify for theexemption. If the owner does not comply with the statutoryprocedures for obtaining an exemption, he waives the exemption. Ifthe exemption is waived, the property is subject to taxation.
(Formerly: Acts 1975, P.L.47, SEC.1.)
IC 6-1.1-11-2
Applicability of chapter
Sec. 2. The procedures contained in this chapter are general. Theyapply unless other procedures for obtaining a specific exemption areprovided by law.
(Formerly: Acts 1975, P.L.47, SEC.1.)
IC 6-1.1-11-3
Exemption application; deadline; information included; assessmentof property; claim on personal property return
Sec. 3. (a) Subject to subsections (e), (f), and (g), an owner oftangible property who wishes to obtain an exemption from propertytaxation shall file a certified application in duplicate with the countyassessor of the county in which the property that is the subject of theexemption is located. The application must be filed annually on orbefore May 15 on forms prescribed by the department of localgovernment finance. Except as provided in sections 1, 3.5, and 4 ofthis chapter, the application applies only for the taxes imposed forthe year for which the application is filed.
(b) The authority for signing an exemption application may not bedelegated by the owner of the property to any other person except byan executed power of attorney.
(c) An exemption application which is required under this chaptershall contain the following information:
(1) A description of the property claimed to be exempt insufficient detail to afford identification.
(2) A statement showing the ownership, possession, and use ofthe property.
(3) The grounds for claiming the exemption.
(4) The full name and address of the applicant.
(5) For the year that ends on the assessment date of theproperty, identification of:
(A) each part of the property used or occupied; and
(B) each part of the property not used or occupied;
for one (1) or more exempt purposes under IC 6-1.1-10 duringthe time the property is used or occupied.
(6) Any additional information which the department of localgovernment finance may require. (d) A person who signs an exemption application shall attest inwriting and under penalties of perjury that, to the best of the person'sknowledge and belief, a predominant part of the property claimed tobe exempt is not being used or occupied in connection with a tradeor business that is not substantially related to the exercise orperformance of the organization's exempt purpose.
(e) An owner must file with an application for exemption of realproperty under subsection (a) or section 5 of this chapter a copy ofthe assessor's record kept under IC 6-1.1-4-25(a) that shows thecalculation of the assessed value of the real property for theassessment date for which the exemption is claimed. Upon receipt ofthe exemption application, the county assessor shall examine thatrecord and determine if the real property for which the exemption isclaimed is properly assessed. If the county assessor determines thatthe real property is not properly assessed, the county assessor shall:
(1) properly assess the real property or direct the townshipassessor to properly assess the real property; and
(2) notify the county auditor of the proper assessment or directthe township assessor to notify the county auditor of the properassessment.
(f) If the county assessor determines that the applicant has notfiled with an application for exemption a copy of the record referredto in subsection (e), the county assessor shall notify the applicant inwriting of that requirement. The applicant then has thirty (30) daysafter the date of the notice to comply with that requirement. Thecounty property tax assessment board of appeals shall deny anapplication described in this subsection if the applicant does notcomply with that requirement within the time permitted under thissubsection.
(g) This subsection applies whenever a law requires an exemptionto be claimed on or in an application accompanying a personalproperty tax return. The claim or application may be filed on or witha personal property tax return not more than thirty (30) days after thefiling date for the personal property tax return, regardless of whetheran extension of the filing date has been granted under IC 6-1.1-3-7.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1977,P.L.2, SEC.19; P.L.65-1983, SEC.2; P.L.6-1997, SEC.37;P.L.198-2001, SEC.32; P.L.178-2002, SEC.15; P.L.264-2003,SEC.4; P.L.154-2006, SEC.10; P.L.219-2007, SEC.24;P.L.146-2008, SEC.107.
IC 6-1.1-11-3.5
Not-for-profit corporation property; eligibility; application; review
Sec. 3.5. (a) A not-for-profit corporation that seeks an exemptionprovided by IC 6-1.1-10 for 2000 or for a year that follows 2000 bya multiple of two (2) years must file an application for the exemptionin that year. However, if a not-for-profit corporation seeks anexemption provided by IC 6-1.1-10 for a year not specified in thissubsection and the corporation did not receive the exemption for thepreceding year, the corporation must file an application for the
exemption in the year for which the exemption is sought. Thenot-for-profit corporation must file each exemption application in themanner (other than the requirement for filing annually) prescribed insection 3 of this chapter.
(b) A not-for-profit corporation that receives an exemptionprovided under IC 6-1.1-10 for a particular year that remains eligiblefor the exemption for the following year is only required to file astatement to apply for the exemption in the years specified insubsection (a), if the use of the not-for-profit corporation's propertyremains unchanged.
(c) A not-for-profit corporation that receives an exemptionprovided under IC 6-1.1-10 for a particular year which becomesineligible for the exemption for the following year shall notify theassessor of the county in which the tangible property for which itclaims the exemption is located of its ineligibility on or before May15 of the year for which it becomes ineligible. If a not-for-profitcorporation that is receiving an exemption provided underIC 6-1.1-10 changes the use of its tangible property so that part or allof that property no longer qualifies for the exemption, thenot-for-profit corporation shall notify the assessor of the county inwhich the tangible property for which it claims the exemption islocated of its ineligibility on or before May 15 of the year for whichit first becomes ineligible. The county assessor shall immediatelynotify the county auditor of the not-for-profit corporation'sineligibility or disqualification for the exemption. A not-for-profitcorporation that fails to provide the notification required by thissubsection is subject to the penalties set forth in IC 6-1.1-37-9.
(d) For each year that is not a year specified in subsection (a), theauditor of each county shall apply an exemption provided underIC 6-1.1-10 to the tangible property owned by a not-for-profitcorporation that received the exemption in the preceding year unlessthe county property tax assessment board of appeals determines thatthe not-for-profit corporation is no longer eligible for the exemption.
(e) The department of local government finance may at any timereview an exemption provided under this section and determinewhether or not the not-for-profit corporation is eligible for theexemption.
As added by P.L.65-1983, SEC.3. Amended by P.L.81-1987, SEC.1;P.L.198-2001, SEC.33; P.L.264-2003, SEC.5.
IC 6-1.1-11-3.8
Notice to county assessor of lease of certain property; countyassessor notice to department of local government finance;department rules
Sec. 3.8. (a) This section applies to real property that afterDecember 31, 2003, is:
(1) exempt from property taxes:
(A) under an application filed under this chapter; or
(B) under:
(i) IC 6-1.1-10-2; or (ii) IC 6-1.1-10-4; and
(2) leased to an entity other than:
(A) a nonprofit entity;
(B) a governmental entity; or
(C) an individual who leases a dwelling unit in:
(i) a public housing project;
(ii) a nursing facility referred to in IC 12-15-14;
(iii) an assisted living facility; or
(iv) an affordable housing development.
(b) After December 31, 2003, each lessor of real property shallnotify the county assessor of the county in which the real property islocated in writing of:
(1) the existence of the lease referred to in subsection (a)(2);
(2) the term of that lease; and
(3) the name and address of the lessee.
(c) Each county assessor shall annually notify the department oflocal government finance in writing of the information received bythe county assessor under subsection (b).
(d) The department of local government finance shall adopt rulesto:
(1) establish when the notices under subsections (b) and (c)must be given; and
(2) otherwise implement this section.
As added by P.L.264-2003, SEC.6.
IC 6-1.1-11-4
Exemption application not required in some cases; effect onexemption of change of ownership
Sec. 4. (a) The exemption application referred to in section 3 ofthis chapter is not required if the exempt property is owned by theUnited States, the state, an agency of this state, or a politicalsubdivision (as defined in IC 36-1-2-13). However, this subsectionapplies only when the property is used, and in the case of realproperty occupied, by the owner.
(b) The exemption application referred to in section 3 of thischapter is not required if the exempt property is a cemetery:
(1) described by IC 6-1.1-2-7; or
(2) maintained by a township executive under IC 23-14-68.
(c) The exemption application referred to in section 3 of thischapter is not required if the exempt property is owned by the bureauof motor vehicles commission established under IC 9-15-1.
(d) The exemption application referred to in section 3 or 3.5 ofthis chapter is not required if:
(1) the exempt property is:
(A) tangible property used for religious purposes describedin IC 6-1.1-10-21;
(B) tangible property owned by a church or religious societyused for educational purposes described in IC 6-1.1-10-16;or
(C) other tangible property owned, occupied, and used by a
person for educational, literary, scientific, religious, orcharitable purposes described in IC 6-1.1-10-16;
(2) the exemption application referred to in section 3 or 3.5 ofthis chapter was filed properly at least once for a religious useunder IC 6-1.1-10-21 or an educational, literary, scientific,religious, or charitable use under IC 6-1.1-10-16; and
(3) the property continues to meet the requirements for anexemption under IC 6-1.1-10-16 or IC 6-1.1-10-21.
A change in ownership of property does not terminate an exemptionof the property if after the change in ownership the propertycontinues to meet the requirements for an exemption underIC 6-1.1-10-16 or IC 6-1.1-10-21. However, if title to any of the realproperty subject to the exemption changes or any of the tangibleproperty subject to the exemption is used for a nonexempt purposeafter the date of the last properly filed exemption application, theperson that obtained the exemption or the current owner of theproperty shall notify the county assessor for the county where thetangible property is located of the change in the year that the changeoccurs. The notice must be in the form prescribed by the departmentof local government finance. If the county assessor discovers thattitle to property granted an exemption described in IC 6-1.1-10-16 orIC 6-1.1-10-21 has changed, the county assessor shall notify thepersons entitled to a tax statement under IC 6-1.1-22-8.1 for theproperty of the change in title and indicate that the county auditorwill suspend the exemption for the property until the persons providethe county assessor with an affidavit, signed under penalties ofperjury, that identifies the new owners of the property and indicatesthat the property continues to meet the requirements for anexemption under IC 6-1.1-10-21 or IC 6-1.1-10-16. Upon receipt ofthe affidavit, the county assessor shall reinstate the exemption for theyears for which the exemption was suspended and each yearthereafter that the property continues to meet the requirements for anexemption under IC 6-1.1-10-21 or IC 6-1.1-10-16.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.53-1988,SEC.2; P.L.1-1990, SEC.67; P.L.2-1991, SEC.36; P.L.6-1997,SEC.38; P.L.14-2000, SEC.15; P.L.182-2009(ss), SEC.107.
IC 6-1.1-11-5
County auditor notice to county assessor of previously exemptproperty; notice to property owner of requirement to fileexemption application
Sec. 5. (a) Before May 16 of each even-numbered year, the countyauditor shall provide to the county assessor a list by taxing district ofproperty for which a tax exemption was in effect for the immediatelypreceding year. Before July 1 of each even-numbered year, thecounty assessor shall return the list to the county auditor with anotation of any action of the county property tax assessment boardof appeals on that year's exemption of each listed property.
(b) The assessor of the county in which property is located shall,in each even-numbered year, mail a notice to the owner of the
property if:
(1) the owner has not applied for a tax exemption for that year;
(2) a tax exemption for the property was in effect for theimmediately preceding year; and
(3) the owner is required to file an application for theexemption for that year under section 3.5 of this chapter.
(c) The notice required by subsection (b) must:
(1) identify the property by key number, if any, and a streetaddress, if any, or other common description of the propertyother than a legal description; and
(2) state that the property will be placed on the county taxduplicate unless the owner applies for an exemption withinfifteen (15) days after the date the notice is mailed.
The county assessor shall mail any notice required by subsection (b)before June 16 of the year in which the exemption application shouldhave been filed.
(d) A county assessor's failure to give the notice required bysubsection (b) does not continue an exemption unless an exemptionapplication is filed by the owner and approved by the countyproperty tax assessment board of appeals on or before the firstMonday in November of the year following the year in which theapplication should have been filed.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.65-1983,SEC.4; P.L.73-1987, SEC.2; P.L.81-1987, SEC.2; P.L.6-1997,SEC.39; P.L.264-2003, SEC.7.
IC 6-1.1-11-6
Submission of tax exemption applications for examination
Sec. 6. Before the convening of the county property taxassessment board of appeals, the county assessor shall submit theexemption applications to the county property tax assessment boardof appeals for examination.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.6-1997,SEC.40; P.L.264-2003, SEC.8.
IC 6-1.1-11-7
Notice of action by the county property tax assessment board ofappeals; action by county assessor and county auditor; appeal
Sec. 7. (a) The county property tax assessment board of appeals,after careful examination, shall approve or disapprove eachexemption application and shall note its action on the application.
(b) If the county property tax assessment board of appealsapproves the exemption, in whole or part:
(1) the county assessor shall notify the county auditor of theapproval; and
(2) the county auditor shall note the board's action on the taxduplicate.
The county auditor's notation is notice to the county treasurer that theexempt property shall not be taxed for the current year unlessotherwise ordered by the department of local government finance. (c) If the exemption application is disapproved by the countyproperty tax assessment board of appeals, the county assessor shallnotify the applicant by mail. Within thirty (30) days after the noticeis mailed, the owner may, in the manner prescribed in IC 6-1.1-15-3,petition the Indiana board to review the county property taxassessment board of appeals' determination.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.6-1997,SEC.41; P.L.90-2002, SEC.104; P.L.264-2003, SEC.9.
IC 6-1.1-11-8
Review of approved application by department of localgovernment finance; department action, report, and rules
Sec. 8. (a) On or before August 1 of each year, the county auditorof each county shall forward to the department of local governmentfinance the duplicate copies of all approved exemption applications.
(b) The department of local government finance shall review theapproved applications forwarded under subsection (a). Thedepartment of local government finance may deny an exemption ifthe department determines that the property is not tax exempt underthe laws of this state. However, before denying an exemption, thedepartment of local government finance must give notice to theapplicant, and the department must hold a hearing on the exemptionapplication.
(c) With respect to the approved applications forwarded undersubsection (a), the department shall annually report to the executivedirector of the legislative services agency:
(1) the number forwarded;
(2) the number subjected to field investigation by thedepartment; and
(3) the number denied by the department;
during the year ending on July 1 of the year. The department mustsubmit the report under this subsection not later than August 1 of theyear and in an electronic format under IC 5-14-6.
(d) The department shall adopt rules under IC 4-22-2 with respectto exempt real property to:
(1) provide just valuations; and
(2) ensure that assessments are:
(A) made; and
(B) recorded;
in accordance with law.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.90-2002,SEC.105; P.L.264-2003, SEC.10; P.L.28-2004, SEC.62.
IC 6-1.1-11-9
Assessment method; exemption for public properties
Sec. 9. (a) Except as provided in subsection (b) of this section, allproperty otherwise subject to assessment under this article shall beassessed in the usual manner, whether or not it is exempt fromtaxation.
(b) No assessment shall be made of property which is owned by
the government of the United States, this state, an agency of thisstate, or a political subdivision of this state if the property is used,and in the case of real property occupied, by the owner.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1977,P.L.2, SEC.20.
IC 6-1.1-11-10
No application fee permitted
Sec. 10. No fee may be charged by a county auditor or countyassessor, or the county auditor's or county assessor's employees, forfiling or preparing an exemption application.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by P.L.65-1983,SEC.5; P.L.178-2002, SEC.16; P.L.264-2003, SEC.11.