TO: All County Assessors
FROM: Micah G. Vincent, Commissioner
RE: Exemption of Certain Property
from Taxation
DATE: June 13, 2013
On May 4, 2013, Governor Mike Pence signed into
law Senate Enrolled Act 517 (“SEA 517”). Sections 3 and 4 introduce changes
affecting the exemption of certain property from taxation. These changes are
effective January 1, 2014. Please note that this memorandum is not a substitute
for the law; rather, it is intended to be an informative bulletin. Indiana law
always governs.
Section 3 amends IC 6-1.1-10-2 such that real
property leased to a state agency is exempt from property taxes if the lease,
regardless of the commencement date, requires the state agency to reimburse the
owner for property taxes. If a state agency leases less than all of a parcel of
real property, the exemption is equal to the part of the gross assessed value of
the real property attributable to the real property leased by the state
agency.
Section 4 adds IC
6-1.1-10-45 which states that a sign manufactured for the Indiana Department of
Transportation to comply with federal law 23 U.S.C. 131 (control
of outdoor advertising) is
exempt from personal property taxation. The owner of personal property that
wishes to obtain this exemption must file an exemption claim along with the
owner’s annual personal property tax return. The claim must describe and state
the assessed value of the personal property for which an
exemption is claimed. The township or county assessor must review the exemption
claim and allow or deny the exemption claim in whole or in part. The assessor’s
action is subject to all the provisions of IC 6-1.1 pertaining to notice,
review, or appeal of personal property assessments. The township or county
assessor must reduce the assessed value of the owner’s personal property for the
year for which the exemption is claimed by the amount of exemption allowed.
Questions may be directed to Staff Attorney Mike
Duffy at 317-233-9219 or mduffy@dlgf.in.gov.
