§ 6-1.1-10-37.5 — Common areas in a residential development; land; improvements; exemption procedures; review by the county board

Indiana § 6-1.1-10-37.5

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

Text

5. (a) As used in this section, "common
area" means a parcel of land, including improvements, in a residential
development that:
(1) is legally reserved for the exclusive use and enjoyment of all
lot owners, occupants, and their guests, regardless of whether a lot
owner makes actual use of the land;
(2) is owned by:
(A) the developer, or the developer's assignee, provided such
ownership is in a fiduciary capacity for the exclusive benefit of
all lot owners in the residential development, and the developer
has relinquished all rights to transfer the property other than to
a person or entity that will hold title to the property in a
fiduciary capacity for the exclusive benefit of all lot owners;
(B) each lot owner within the residential development, equally
or pro rata; or
(C) a person, trust, or entity that holds title to the land for the
benefit of all lot owners within the residential development;
(3) cannot be transferred for value to another party without the
affirmative approval of:
(A) all lot owners within the residential development; or
(B) not less than a majority of all lot owners within the
residential development, if majority approval is permitted under
the bylaws or other governing documents of a homeowners
association, or similar entity;
(4) does not include a Class 2 structure (as defined in IC 22-12-1-5); and
(5) is not designed or approved for the construction of a Class 2
structure.
The term includes, but is not limited to, a lake, pond, street, sidewalk,
park, green area, trail, wetlands, signage, swimming pool, clubhouse,
or other features or amenities that benefit all lot owners within the
residential development.
(b) As used in this section, "lot owner" means an individual or entity
that is the owner of record of a lot, parcel, tract, unit, or interest within
a residential development, upon which a Class 2 structure (as defined
in IC 22-12-1-5) is or will be constructed.
(c) As used in this section, "residential development" means a parcel
of land that is subdivided into lots, parcels, tracts, units, or interests:
(1) all of which, except for a common area, include an existing
Class 2 structure (as defined in IC 22-12-1-5), or are designated
for the construction of a Class 2 structure; and
(2) each of which is encumbered by substantively identical
restrictive covenants concerning one (1) or more servient estates
located within the boundaries of the original undivided parcel, or
other governing document of record.
(d) Notwithstanding any other provision of this article, a common
area is exempt from property taxation, provided that the common area
easements and covenants restricting the use and conveyance of
common areas to lot owners are recorded, and notice is provided, to the
appropriate county or township assessor.
(e) A county or township assessor shall designate an area as a
common area after:
(1) receiving notice as provided in subsection (d); and
(2) determining that the area is a common area.
(f) If a county or township assessor determines that the area is not
a common area, or determines that the area fails to meet the
requirements of subsection (d), then the county or township assessor
shall send a written statement to the owner of the common area not
later than thirty (30) days after receiving the notice under subsection
(d). The written statement shall contain:
(1) the specific provisions on which the county or township
assessor based the determination; and
(2) a statement that the owner of the common area shall have
thirty (30) days to address the specific provisions provided in
subdivision (1), and to establish the area as a common area that
meets the requirements of subsection (d).
(g) If a county or township assessor fails to send a written statement
to the owner of a common area as required by this section, then the area
for which notice was provided in subsection (d) shall be considered a
common area for purposes of this section.
(h) Once an area has been designated a common area, no subsequent
refiling of a common area property tax exemption is required unless an
area designated as a common area subsequently fails to meet the
definition of a common area as provided in this section.
(i) A common area may be created at any time during or after a
residential development is created. For purposes of the exemption
under this section, a common area may be created or expanded after the
initial approval of the residential development only if that creation or
expansion of the common area:
(1) is approved by:
(A) all lot owners within the residential development; or
(B) not less than a majority of all lot owners within the
residential development, if majority approval is permitted under
the bylaws or other governing documents of a homeowners
association, or similar entity; and
(2) receives any approvals required by the county or municipality
in which the common area is located.
(j) An owner of an area may obtain review by the county property
tax assessment board of appeals of a county or township assessor's
determination under subsection (f).

Legislative History

As added by P.L.148-2015, SEC.5.