Annual deduction; amount; percentage; period of deduction; effect
of reassessment
Sec. 4. (a) Except as provided in section 2(i)(4) of this chapter,
the amount of the deduction which the property owner is entitled to
receive under section 3 of this chapter for a particular year equals the
product of:
(1) the increase in the assessed value resulting from the
rehabilitation or redevelopment; multiplied by
(2) the percentage prescribed in the table set forth in subsection
(d).
(b) The amount of the deduction determined under subsection (a)
shall be adjusted in accordance with this subsection in the following
circumstances:
(1) If a general reassessment of real property occurs within the
particular period of the deduction, the amount determined under
subsection (a)(1) shall be adjusted to reflect the percentage
increase or decrease in assessed valuation that resulted from the
general reassessment.
(2) If an appeal of an assessment is approved that results in a
reduction of the assessed value of the redeveloped or
rehabilitated property, the amount of any deduction shall be
adjusted to reflect the percentage decrease that resulted from
the appeal.
The department of local government finance shall adopt rules under
IC 4-22-2 to implement this subsection.
(c) Property owners who had an area designated an urban
development area pursuant to an application filed prior to January 1,
1979, are only entitled to the deduction for the first through the fifth
years as provided in subsection (d)(10). In addition, property owners
who are entitled to a deduction under this chapter pursuant to an
application filed after December 31, 1978, and before January 1,
1986, are entitled to a deduction for the first through the tenth years,
as provided in subsection (d)(10).
(d) The percentage to be used in calculating the deduction under
subsection (a) is as follows:
(1) For deductions allowed over a one (1) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
(2) For deductions allowed over a two (2) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 50%
(3) For deductions allowed over a three (3) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 66%
3rd
33%
(4) For deductions allowed over a four (4) year period:
YEAR OF DEDUCTION PERCENTAGE
1st
100%
2nd
75%
3rd
50%
4th
25%
(5) For deductions allowed over a five (5) year period:
YEAR OF DEDUCTION PERCENTAGE
1st
100%
2nd
80%
3rd
60%
4th
40%
5th
20%
(6) For deductions allowed over a six (6) year period:
YEAR OF DEDUCTION PERCENTAGE
1st
100%
2nd
85%
3rd
66%
4th
50%
5th
34%
6th
17%
(7) For deductions allowed over a seven (7) year period:
YEAR OF DEDUCTION PERCENTAGE
1st
100%
2nd
85%
3rd
71%
4th
57%
5th
43%
6th
29%
7th
14%
(8) For deductions allowed over an eight (8) year period:
YEAR OF DEDUCTION PERCENTAGE
1st
100%
2nd
88%
3rd
75%
4th
63%
5th
50%
6th
38%
7th
25%
8th
13%
(9) For deductions allowed over a nine (9) year period:
YEAR OF DEDUCTION PERCENTAGE
1st
100%
2nd
88%
3rd
77%
4th
66%
5th
55%
6th
44%
7th
33%
8th 22%
9th 11%
(10) For deductions allowed over a ten (10) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 95%
3rd 80%
4th 65%
5th 50%
6th 40%
7th 30%
8th 20%
9th 10%
10th 5%
As added by Acts 1977, P.L.69, SEC.1. Amended by Acts 1979,
P.L.56, SEC.8; Acts 1981, P.L.72, SEC.2; P.L.62-1985, SEC.2;
P.L.57-1988, SEC.1; P.L.3-1989, SEC.35; P.L.332-1989(ss),
SEC.11; P.L.65-1993, SEC.3; P.L.4-2000, SEC.5; P.L.90-2002,
SEC.119.
Last modified: May 28, 2006