§ 6-1.1-4-12 — Circumstances under which undeveloped land may be reassessed

Indiana § 6-1.1-4-12

• Jurisdiction: Indiana
• Art. 1.1: PROPERTY TAXES
• Ch. 4: Procedures for Real Property Assessment

Text

(a) As used in this section, "land developer"
means a person that holds land for sale in the ordinary course of the
person's trade or business. The term includes a financial institution (as
defined in IC 28-1-1-3(1)) if the financial institution's land in inventory
is purchased, acquired, or held for one (1) or more of the purposes
established under IC 28-1-11-5(a)(2), IC 28-1-11-5(a)(3), and IC 28-1-11-5(a)(4). The determination of whether a person qualifies as a
land developer shall be based upon whether such person satisfies the
requirements contained in this subsection, and no consideration shall
be given to either the person's industry classification, such as
classification as a developer or builder, or any other activities
undertaken by the person in addition to holding land for sale in the
ordinary course of the person's trade or business.
(b) As used in this section, "land in inventory" means:
(1) a lot; or
(2) a tract that has not been subdivided into lots;
to which a land developer holds title in the ordinary course of the land
developer's trade or business.
(c) As used in this section, "title" refers to legal or equitable title,
including the interest of a contract purchaser.
(d) For purposes of this section, land purchased, acquired, or held
by a financial institution for one (1) or more of the purposes established
under IC 28-1-11-5(a)(2), IC 28-1-11-5(a)(3), and IC 28-1-11-5(a)(4)
is considered held for sale in the ordinary course of the financial
institution's trade or business.
(e) Except as provided in subsections (i), (j), and (k), if:
(1) land assessed on an acreage basis is subdivided into lots; or
(2) land is rezoned for, or put to, a different use;
the land shall be reassessed on the basis of its new classification.
(f) If improvements are added to real property, the improvements
shall be assessed.
(g) An assessment or reassessment made under this section is
effective on the next assessment date.
(h) No petition to the department of local government finance is
necessary with respect to an assessment or reassessment made under
this section.
(i) Except as provided in subsection (k) and subject to subsection
(j), land in inventory may not be reassessed until the next assessment
date following the earliest of:
(1) the date on which title to the land is transferred by:
(A) the land developer; or
(B) a successor land developer that acquires title to the land;
to a person that is not a land developer;
(2) the date on which construction of a structure begins on the
land; or
(3) the date on which a building permit is issued for construction
of a building or structure on the land.
(j) Subsection (i) applies regardless of whether the land in inventory
is rezoned while a land developer holds title to the land.
(k) This subsection applies to land in inventory that a for-profit land
developer acquires from a:
(1) school corporation; or
(2) local unit of government (as defined in IC 14-22-31.5-1), but
only if the local unit of government:
(A) acquired the land in a tax sale procedure under IC 6-1.1; or
(B) has held the land for not less than three (3) years prior to
the date on which the for-profit land developer acquires it from
the local unit of government.
Land in inventory to which this subsection applies shall be assessed on
the first assessment date immediately following the date on which the
land developer acquires title to the land in inventory. Notwithstanding
section 13(a) of this chapter, land in inventory to which this subsection
applies is considered to be devoted to agricultural use and shall be
assessed at the agricultural land base rate. After the initial assessment
under this subsection, land in inventory to which this subsection
applies shall be reassessed in accordance with subsection (i).
[Pre-1975 Property Tax Recodification Citation: 6-1-26-9
part.]
Formerly: Acts 1975, P.L.47, SEC.1; Acts 1975, P.L.49, SEC.1.
As amended by P.L.90-2002, SEC.35; P.L.154-2006, SEC.1;
P.L.118-2013, SEC.2; P.L.85-2019, SEC.1; P.L.257-2019, SEC.13;
P.L.154-2020, SEC.2.