18.
Indiana Code section 6-1.1-10-16(a) states “All or part of a building is exempt
from property taxation if it is owned, occupied, and used by a person for
educational, literary, scientific, religious, or charitable purposes.” Further,
“a tract of land … is exempt from property taxation if: (1) a building that is
exempt under subsection (a) or (b) is situated on it; [or] (2) a parking lot or
structure that serves a building referred in subdivision (1) is situated on
it.” Ind. Code § 6-1.1-10-16(c).
19.
The test used to determine whether all or a portion of a subject property
qualifies for an exemption is the “predominant use” test. New Castle Lodge
#147, Loyal Order of Moose, Inc., 765 N.E.2d 1257, 1259 (Ind. 2002). Indiana
Code section 6-1.1-10-36.3(a) states “property is predominantly used or
occupied for one (1) or more stated purposes if it is used or occupied for one
(1) or more of those purposes during more than fifty percent (50%) of the time
that it is used or occupied in the year that ends on the assessment date of the
property.” Indiana Code section 6-1.1-10-36.3(c) further provides that
“[p]roperty that is predominantly used or occupied for one (1) or more of the stated
purposes by a church, religious society, or not-for-profit school is totally
exempt under that section.”
20.
“The evaluation of whether property is owned, occupied, and predominately used
for an exempt purpose,” however, “is a fact sensitive inquiry; there are no
bright-line tests." Jamestown Homes of Mishawaka, Inc. v. St. Joseph
County Assessor, 914 N.E.2d 13 (Ind. Tax Ct. 2009). Thus, every exemption case
“stand[s] on its own facts” and on how the parties present those facts. See
Indianapolis Osteopathic Hospital, Inc., 818 N.E.2d 1009, 1018 (Ind. Tax Ct.
2004); Long v. Wayne Twp. Assessor, 821 N.E.2d 466, 471 (Ind. Tax Ct. 2005)
(explaining that a taxpayer has a duty to walk the Indiana Board through every
element of its analysis; it cannot assume the evidence speaks for itself).
21.
Under Indiana Code section 6-1.1-11-4(d), an exemption application is not
required if “the exempt property is tangible property used for religious
purposes described in IC 6-1.1-10-21;… and (2) the exemption application
referred to in section 3 of this chapter was filed properly at least once after
the property was designated for a religious use as described in IC
6-1.1-10-21.” Ind. Code § 6-1.1-11-4(d).
22.
In this case, there is no dispute that the property is owned, occupied and used
for religious purposes. It has always been a church, and has always received an
exemption, until 2013 when the Assessor denied the exemption based on the
Church’s alleged failure to file what the Assessor deemed to be a proper
exemption application. To the extent the Assessor disputes this fact, it is
only because she claims that she incorrectly granted an exemption to the Church
in 2009 due to a paperwork error.
23.
Regardless of the reason the Assessor denied the exemption application in 2013,
she erred in doing so. In 2006, the Assessor granted the Petitioner an
exemption based on the Letter of Notification. The Letter of Notification is an
acceptable mechanism for claiming a religious exemption according to the State
Board of Tax Commissioners. Petitioner Exhibit E. Under Indiana Code section
6-1.1-11-4(d), the Church was not required to file an application for 2013. Because
Petitioner was not required to file an application and the property met all of
the other requirements of Indiana Code section 6-1.1-11-4, the PTABOA
erroneously denied the exemption.
