§ 6-1.1-10-16 — Exemption of building, land, and personal property used for various purposes; termination of eligibility for exemption

Indiana § 6-1.1-10-16

• Jurisdiction: Indiana
• Art. 1.1: PROPERTY TAXES
• Ch. 10: Exemptions

Text

(a) All or part of a building is exempt from
property taxation if it is owned, occupied, and used by a person for
educational, 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 for educational,
literary, scientific, fraternal, or charitable purposes.
(c) A tract of land, including the campus and athletic grounds of an
educational institution, is exempt from property taxation if:
(1) a building that is exempt under subsection (a) or (b) is situated
on it;
(2) a parking lot or structure that serves a building referred to in
subdivision (1) is situated on it; or
(3) the tract:
(A) is owned by a nonprofit entity established for the purpose
of retaining and preserving land and water for their natural
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 is to
be owned, occupied, and used in such a manner that the building
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 owner
demonstrates substantial progress and active pursuit towards the
erection of the intended building and use of the tract for the
exempt purpose. To establish substantial progress and active
pursuit under this subdivision, the owner must prove the existence
of factors such as the 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 four (4) years.
(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 building is an active plan and
that the building is capable of being completed within eight (8)
years considering the circumstances of the owner.
If the owner of the property sells, leases, or otherwise transfers a tract
of land that is exempt under this subsection, the owner is liable for the
property taxes that were not imposed upon the tract of land during the
period beginning January 1 of the fourth year following the purchase
of the property and ending on December 31 of the year of the sale,
lease, or transfer. The county auditor of the county in which the tract
of land is located may establish an installment plan for the repayment
of taxes due under this subsection. The plan established by the county
auditor may allow the repayment of the taxes over a period of years
equal to the number of years for which property taxes must be repaid
under this subsection.
(e) Personal property is exempt from property taxation if it is owned
and used in such a manner that it would be exempt under subsection (a)
or (b) if it were a building.
(f) A hospital's property that is exempt from property taxation under
subsection (a), (b), or (e) shall remain exempt from property taxation
even if the property is used in part to furnish goods or services to
another hospital whose property qualifies for exemption under this
section.
(g) Property owned by a shared hospital services organization that
is exempt from federal income taxation under Section 501(c)(3) or
501(e) of the Internal Revenue Code is exempt from property taxation
if it is owned, occupied, and used exclusively to furnish goods or
services to a hospital whose property is exempt from property taxation
under subsection (a), (b), or (e).
(h) This section does not exempt from property tax an office or a
practice of a physician or group of physicians that is owned by a
hospital licensed under IC 16-21-2 or other property that is not
substantially related to or supportive of the inpatient facility of the
hospital unless the office, practice, or other property:
(1) provides or supports the provision of charity care (as defined
in IC 16-18-2-52.5), including providing funds or other financial
support 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, or
government sponsored indigent health care (as defined in IC 16-21-9-2).
However, participation in the Medicaid or Medicare program alone
does not entitle an office, practice, or other property described in this
subsection to an exemption under this section.
(i) A tract of land or a tract of land plus all or part of a structure on
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 be given
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; and
(3) the tract of land or the tract of land plus all or part of a
structure on the land is not used for profit while exempt under this
section.
(j) An exemption under subsection (i) terminates when the property
is conveyed by the nonprofit organization to another owner.
(k) When property that is exempt in any year under subsection (i) 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.
(l) If property is granted an exemption in any year under subsection
(i) and the owner:
(1) fails to transfer the tangible property within eight (8) years
after the assessment date for which the exemption is initially
granted; or
(2) 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) or
(2) occurs. The county auditor shall immediately inform the county
assessor of a notification received under this subsection.
(m) If subsection (l)(1) or (l)(2) 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.
(n) The liability imposed by subsection (m) is a lien upon the
property receiving the exemption under subsection (i). An amount
collected under subsection (m) 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.
(o) Property referred to in this section shall be assessed to the extent
required under IC 6-1.1-11-9.
(p) This subsection applies to assessment dates occurring before
January 1, 2026. A for-profit provider of early childhood education
services to children who are at least four (4) but less than six (6) years
of age on the annual assessment date may receive the exemption
provided by this section for property used for educational purposes
only if all the requirements of section 46 of this chapter are satisfied.
A for-profit provider of early childhood education services that
provides the services only to children younger than four (4) years of
age may not receive the exemption provided by this section for
property used for educational purposes.
(q) This subsection applies to assessment dates occurring after
December 31, 2025. Property used by a for-profit provider of early
childhood education services to children who are less than six (6) years
of age on the annual assessment date may receive the exemption
provided by this section for property used for educational purposes
only if all the requirements of section 46 of this chapter are satisfied.
(r) This subsection applies only to property taxes that are first due
and payable in calendar years 2025 and 2026. All or part of a building
is deemed to serve a charitable purpose and is exempt from property
taxation if it is owned by a nonprofit entity that is:
(1) registered as a continuing care retirement community under IC 23-2-4 and charges an entry fee of not more than five hundred
thousand dollars ($500,000) per unit;
(2) defined as a small house health facility under IC 16-18-2-331.9;
(3) licensed as a health care or residential care facility under IC 16-28; or
(4) licensed under IC 31-27 and designated as a qualified
residential treatment provider that provides services under a
contract with the department of child services.
This subsection expires January 1, 2027.
[Pre-1975 Property Tax Recodification Citation:
6-1-1-2(5).]
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; P.L.156-2011, SEC.2; P.L.197-2011, SEC.32; P.L.151-2014,
SEC.1; P.L.181-2016, SEC.2; P.L.85-2019, SEC.2; P.L.230-2025,
SEC.26.