Applicability of deduction entitlement; calculation of deduction
amount; filing requirements; adjustments
Effective 1-1-2006.
Sec. 2. (a) For purposes of this section, an increase in the assessed
value of real property is determined in the same manner that an
increase in the assessed value of real property is determined for
purposes of IC 6-1.1-12.1.
(b) This subsection applies only to a development, redevelopment,
or rehabilitation that is first assessed after March 1, 2005, and before
March 2, 2009. Except as provided in subsection (h) and sections 4,
5, and 8 of this chapter, an owner of real property that:
(1) develops, redevelops, or rehabilitates the real property; and
(2) creates or retains employment from the development,
redevelopment, or rehabilitation;
is entitled to a deduction from the assessed value of the real property.
(c) The deduction under this section is first available in the year
in which the increase in assessed value resulting from the
development, redevelopment, or rehabilitation occurs and continues
for the following two (2) years. The amount of the deduction that a
property owner may receive with respect to real property located in
a county for a particular year equals the lesser of:
(1) two million dollars ($2,000,000); or
(2) the product of:
(A) the increase in assessed value resulting from the
development, rehabilitation, or redevelopment; multiplied by
(B) the percentage from the following table:
YEAR OF DEDUCTION PERCENTAGE
1st 75%
2nd 50%
3rd 25%
(d) A property owner that qualifies for the deduction under this
section must file a notice to claim the deduction in the manner
prescribed by the department of local government finance under rules
adopted by the department of local government finance under
IC 4-22-2 to implement this chapter. The township assessor shall:
(1) inform the county auditor of the real property eligible for the
deduction as contained in the notice filed by the taxpayer under
this subsection; and
(2) inform the county auditor of the deduction amount.
(e) The county auditor shall:
(1) make the deductions; and
(2) notify the county property tax assessment board of appeals of
all deductions approved;
under this section.
(f) The amount of the deduction determined under subsection
(c)(2) is adjusted to reflect the percentage increase or decrease in
assessed valuation that results from:
(1) a general reassessment of real property under IC 6-1.1-4-4;
or
(2) an annual adjustment under IC 6-1.1-4-4.5.
(g) If an appeal of an assessment is approved that results in a
reduction of the assessed value of the real property, the amount of
the deduction under this section is adjusted to reflect the percentage
decrease that results from the appeal.
(h) The deduction under this section does not apply to a facility
listed in IC 6-1.1-12.1-3(e).
As added by P.L.193-2005, SEC.8.
Last modified: May 28, 2006