1988-07-08 Resolution 10 - Laserfiche WebLink

Home Browse Search

r s unpaid is added. The delinquency. Property delinquency. penalties are imposed only on the principal amount of the becomes subject to tax sale procedures after 15 months of Pursuant to State law, real property is valued for assessment purposes at its "true cash value" as defined in rules and regulations promulgated by the State Board of Tax Commissioners. "True cash value" does not mean fair market value. Current regulations define the true cash value, generally, as the reproduction value of property based on actual material and labor costs prevalent in the State of Indiana in 1975. The local assessor may subtract from the reproduction value, an amount for normal depreciation, as provided- in the regulations, as well as amounts far functional or economic obsolescence, as the assessor deems appropriate in accordance with the regulations. The "gross assessed value" is equal to 33-) /3% of the true cash value, as defined above. "Net assessed value" represents the gross assessed value less certain deductions for mortgages, veterans, the .aged, the blind, economic revitalization, and tax-exempt property. The net assessed value is the value used for taxing purposes. in the determination of tax rates. Indiana Code 6-I.I-21-5 provides that each year taxpayers will receive a credit for property tax replacement, known as the "property tax replacement credit" (PTRC), in the amount of twenty percent (20%) of their tax liability for taxes as defined under 1C 6-I.I-22-9 which are due and payable in May and November of that year. The credit is applied to each installment of taxes. However, the tax liability of a taxpayer does not include the amount of any property tax owed by the taxpayer attributable to certain specified components of the tax levy. Among the tax levy components not receiving the PTRC are the property taxes that will be used to pay for principal and interest due on debt entered into after December 31, 1983. The Indiana Code 6-I.I-12.1 provides a mechanism by which a governmental unit may authorize a property tax deduction for real property and for new manufacturing equipment within an economic revitalization area. The City of South Bend has chosen to use this tax abatement mechanism to encourage economic development in targeted areas. Most of the recent projects in the Allocation Area have received tax abatements. Ordinance Number 7661-86, amending Chapter 2, Article 6 of the City's Municipal Code dealing with tax abatement procedures, was passed by the Common Council on July 14, 1986, (effective upon passage). The Ordinance sets the standards and procedures by which petitions for tax abatements are considered by the Council and establishes eligibility criteria. Pursuant to State law, the Council may grant the tax abatement for real property for a period of (i) three, six or ten years, if the petition is filed after January 1, 1986, or (ii) ten years if filed after December 31, 1978 but before January I, 1986. The deduction is equal to the increase in assessed value resulting from the rehabilitation or redevelopment, multiplied by the percentages prescribed in the following table. • -6 -