§ 6-1.1-12.1-14 — Local government authority to impose fee with consent of property owner; fee amount; distribution

Indiana § 6-1.1-12.1-14

• Jurisdiction: Indiana
• Art. 1.1: PROPERTY TAXES
• Ch. 12.1: Deduction for Rehabilitation or Redevelopment of

Text

(a) This section does not apply to:
(1) a deduction under section 3 of this chapter for property
located in a residentially distressed area; or
(2) any other deduction under section 3 or 4.5 of this chapter for
which a statement of benefits was approved before July 1, 2004.
(b) A property owner that receives a deduction under section 3, 4.5,
or 4.8 of this chapter is subject to this section only if the designating
body, with the consent of the property owner, incorporates this section,
including the percentage to be applied by the county auditor for
purposes of STEP TWO of subsection (c), into its initial approval of the
property owner's statement of benefits and deduction at the time of that
approval.
(c) During each year in which a property owner's property tax
liability is reduced by a deduction applied under this chapter, the
property owner shall pay to the county treasurer a fee in an amount
determined by the county auditor. The county auditor shall determine
the amount of the fee to be paid by the property owner according to the
following formula:
STEP ONE: Determine the additional amount of property taxes
that would have been paid by the property owner during the year
if the deduction had not been in effect.
STEP TWO: Multiply the amount determined under STEP ONE
by the percentage determined by the designating body under
subsection (b), which may not exceed fifteen percent (15%). The
percentage determined by the designating body remains in effect
throughout the term of the deduction and may not be changed.
STEP THREE: Determine the lesser of the STEP TWO product
or one hundred thousand dollars ($100,000).
(d) Fees collected under this section must be distributed to one (1)
or more public or nonprofit entities established to promote economic
development within the corporate limits of the city, town, or county
served by the designating body. The designating body shall notify the
county auditor of the entities that are to receive distributions under this
section and the relative proportions of those distributions. The county
auditor shall distribute fees collected under this section in accordance
with the designating body's instructions.
(e) If the designating body determines that a property owner has not
paid a fee imposed under this section, the designating body may adopt
a resolution terminating the property owner's deduction under section
3, 4.5, or 4.8 of this chapter. If the designating body adopts such a
resolution, the deduction does not apply to the next installment of
property taxes owed by the property owner or to any subsequent
installment of property taxes.

Legislative History

As added by P.L.81-2004, SEC.57. Amended by P.L.193-2005, SEC.7; P.L.154-2006, SEC.36.