Tax Abatements

Tax abatement is a phasing-in of real and personal property taxes on projects that increase the tax base and the employment base of a community.

 

  • Property tax abatement in Indiana is authorized under Indiana Code 6-1.1-12.1 in the form of deductions from asssessed valuation.  Land does not qualify for abatement.  Only the increase in asssessed value that occurs as a result of the investment is eligible for abatement.  It is not permissible to abate property that is already taxed in Indiana.

 

  • Property tax abatement is controlled by the Unit of Government in which the project is located.  If the project is located within the corporate boundaries of the Town of Bloomingdale, Town of Marshall, Town of Mecca, Town of Montezuma, Town of Rockville or Town of Rosedale, the Town Council of each unit has jurisdiction over the application.  If the project is located outside those corporate boundaries, the County of Parke, through its County Council, has jurisdiction over the application.

 

  • The period of tax phase-in may be any number of years between one and ten.  An applicant may request an abatement period in their request.  Each Unit of Government ultimately determines the period of time for which abatement is granted.

 

  • The Units of Government in Parke County may offer tax abatement for projects that are industrial or certain commercial projects located within a designated Economic Revitalization Area (ERA).  Each Unit of Government determines what areas are ERA within their jurisdiction.

  • Projects seeking tax abatement must conform to any applicable ordinances, regulations and design standards currently in place for each Unit of Governement in which the project will occur.

  • To be eligible, requests for real property tax abatement consideration must be filed and approved before the issuance of an improvement location permit or before any filings toward a building permit.  Any applicable fees must accompany the request.

  • Requests for personal property tax abatement should be filed with the real property request, although there is a procedure by which late filings of personal property tax abatement requests may be considered.

  • The following types of projects are NOT eligible for tax abatement per Indiana Code:

    • Private or commercial golf course

    • Country club

    • Massage parlor

    • Tennis club

    • Skating facility (including roller skating, skateboarding or ice skating)

    • Racquet sport facility (including any handball or racquetball court)

    • Hot tub facility

    • Suntan facility

    • Racetrack

    • Package Liquor Store that holds a liquor dealer's permit under IC 7.1-3-10 or any other entity required to operate under a license issued under IC 7.1 et al

    • Any facility the primary purpose of which is retail food and beverage service, automobile sales or service or other retail

    • Residential, except for certain exceptions

Industrial/Commercial Tax Abatement
  • To be eligible for industrial/commercial tax abatement, the project must be located within a designated Economic Revitalization Area (ERA).  Tax abatement within a TIF District will require special consideration by the Redevelopment Commission.

  • Tax abatement may be granted for a maximum of ten (10) years to all commercial and industrial companies for new construction, expansions and personal property as long as the eligibility criteria outlined in the document are met.

  • The respective Unit of Government's Council may also, at their discretion, use the employee wage and benefits levels when considering the approval of tax abatement for commercial and industrial companies.

Speculative Buildings Tax Abatement
  • To be eligible for industrial/commercial tax abatement, the project must be located within a designated Economic Revitalization Area (ERA).  Tax abatement within a TIF District will require special consideration by the Redevelopment Commission.

  • Tax abatement may be granted for a maximum of ten (10) years to all commercial and industrial companies for new construction, expansions and personal property as long as the eligibility criteria outlined in the document are met.

  • Minimal design standards as defined by the respective Unit of Government must be met in order for a speculative building to qualify for tax abatement by that Unit of Government.

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