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Indiana Code § 6-1.1-11-3(a)
requires a property owner to file a written application on or before May 15 of
the year for which it seeks the exemption. Indiana Code § 6-1.1-11-3.5 allows a
slightly different requirement for not-for-profit corporations. Since the
Petition for Review of Exemption and the Application for Exemption both state
that Petitioner is a not-for-profit corporation, section 3.5(a) applies in this
case. It states the following:
A not-for-profit corporation that
seeks an exemption provided by IC 6-1.1-10 for 2000 or for a year that follows
2000 by a multiple of two (2) years must file an application for the exemption in
that year. However, if a not-for-profit corporation seeks an exemption provided
by IC 6-1.1-10 for a year not specified in this subsection and the corporation
did not receive the exemption for the preceding year, the corporation must file
an application for the exemption in the year for which the exemption is sought.
The not-for-profit corporation must file each exemption application in the
manner (other than the requirement for filing annually) prescribed in section 3
of this chapter.
Nevertheless, the legislature has
enacted limited exceptions to the May 15 filing requirement. In the Form 132
Petition for Review of Exemption filed in case, Petitioner claimed to qualify
for an exception provided by House Enrolled Act No. 1125. For 2003, 2004 and
2005, this exception permits an entity that is a church or religious society
that failed to timely file an application for exemption under Ind. Code §
6-1.1-11 to file an application that will be considered as timely.
As Respondent noted, the
Petitioner did not own, occupy or use the property on March 1, 2005. The
logical meaning of Ind. Code § 6-1.1-11-3, however, relates the ownership requirement
to the time of filing the exemption application, which must be on or before May
15, rather than the assessment date. In this case, Petitioner did not own the
property on either date, the assessment date of March 1 or the filing date of
May 15, 2005. The Application for Exemption was due by May 15. The evidence
shows Petitioner did not file the Application until September 22, 2008.
Petitioner did not establish that
it met the requirements of House Enrolled Act No. 1125. Petitioner failed to
present any evidence or argument relating to that Act.
The Board finds the Petitioner’s
2005 claim for exemption must be denied because it was filed after the May 15
deadline and because Petitioner failed to establish that it satisfied the
requirements for any exception that might have allowed approval of such a
claim.
Responsibility for property taxes
is governed by Indiana Statute. “The owner of any real property on the
assessment date of a year is liable for the taxes imposed for that year on the
property…" Ind. Code § 6-1.1-2-4. “When a person other than the owner pays
any property taxes, as required by this section, that person may recover the
amount paid from the owner, unless the parties have agreed to other terms in a
contract.” Id.
Property taxes are a lien on the
property and attach on the assessment date. The sale and purchase of the
property does not affect the lien. Ind. Code § 6-1.1-22-13(a). Due to the delay
between assessment and billing as well as the possibility of a having a lien on
the property, parties frequently assign responsibility for the tax liability
within the purchase agreement. Van Prooyen Builders, Inc. v. Lambert,
907 N.E.2d 1032 (Ind. Ct. App. 2009).
Regardless of whether or not
Petitioner owned the subject property on the assessment date, the purchase of
the property by Petitioner did not affect the tax lien that attached when the
2005-pay-2006 taxes were not paid in a timely manner. While Petitioner may have
a possible claim against the prior owner of the property, it is not an issue
for the Board. Therefore, Petitioner’s request that the assessor’s office
remove any delinquent taxes that were assessed to the church prior to the June
15, 2005 purchase date is denied.
