Indiana § 36-4-3-8.5 Tax abatement in annexed territory; ordinance; required provisions

Indiana Statutes

§ 36-4-3-8.5 — Tax abatement in annexed territory; ordinance; required provisions

Indiana § 36-4-3-8.5

Title 36LOCAL GOVERNMENT

Art. 4GOVERNMENT OF CITIES AND TOWNS

Ch. 3Municipal Annexation and Disannexation

This text of Indiana § 36-4-3-8.5 (Tax abatement in annexed territory; ordinance; required provisions) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 36-4-3-8.5 (2026).

Text

5.

(a)A municipality may, in an ordinance adopted under section 3 or 4 of this chapter, abate a portion of the property tax liability under IC 6-1.1 for municipal purposes for all property owners in the annexed territory.

(b)An ordinance adopted under subsection (a) must provide the following:

(1)A tax abatement program that is in effect for not more than three (3) taxable years after an annexation occurs.

(2)Except single family residential property described by subdivision (3), a tax abatement for all classes of property that does not exceed:

(A)seventy-five percent (75%) of a taxpayer's liability in the first year of the abatement program;

(B)fifty percent (50%) of a taxpayer's liability in the second year of the abatement program; and

(C)twenty-five percent (25%) of a taxpayer's

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5. (a) A municipality may, in an ordinance
adopted under section 3 or 4 of this chapter, abate a portion of the
property tax liability under IC 6-1.1 for municipal purposes for all
property owners in the annexed territory.
(b) An ordinance adopted under subsection (a) must provide the
following:
(1) A tax abatement program that is in effect for not more than
three (3) taxable years after an annexation occurs.
(2) Except single family residential property described by
subdivision (3), a tax abatement for all classes of property that
does not exceed:
(A) seventy-five percent (75%) of a taxpayer's liability in the
first year of the abatement program;
(B) fifty percent (50%) of a taxpayer's liability in the second
year of the abatement program; and
(C) twenty-five percent (25%) of a taxpayer's liability in the
third year of the abatement program.
(3) For a county having a population of more than two hundred
fifty thousand (250,000) and less than three hundred thousand
(300,000), a tax abatement for single family residential property
that does not exceed:
(A) ninety percent (90%) of a taxpayer's liability in the first
year of the abatement program;
(B) eighty percent (80%) of a taxpayer's liability in the second
year of the abatement program;
(C) sixty percent (60%) of a taxpayer's liability in the third year
of the abatement program;
(D) forty percent (40%) of a taxpayer's liability in the fourth
year of the abatement program; and
(E) twenty percent (20%) of a taxpayer's liability in the fifth
year of the abatement program.
(4) The procedure by which an eligible property owner receives
a tax abatement under this section.

Legislative History

As added by P.L.379-1987(ss), SEC.13. Amended by P.L.56-1988, SEC.12; P.L.12-1992, SEC.157; P.L.231-1996, SEC.2; P.L.255-1997(ss), SEC.12; P.L.119-2012, SEC.187; P.L.104-2022, SEC.157.