STATEHOUSE (March 25, 2019) – State Rep. Doug Miller’s (R-Elkhart) legislation to restore property tax exempt status to Habitat for Humanity could soon become law.
According to Miller, this proposal would benefit communities by reinstating Habitat for Humanity’s ability to have land in their inventory exempted from property taxes until a home is built on the property. At that time, the property would move to the tax rolls and be taxed at the normal rate. This provision was inadvertently removed in the last budget cycle.
Habitat for Humanity is a nonprofit organization that provides affordable housing and helps families build and improve places to call home.
“Our communities benefit when we promote organizations that cultivate service and charity,” Miller said. “We need to restore the tax exempt status for Habitat for Humanity so they can continue to serve our community and help provide housing to families in need.”
The proposal would also grant a property tax exempt status to the new Elkhart Health, Fitness, Aquatics and Community Center. Miller said this could have a positive impact because the savings would provide much needed services and activities for those in the community.
Miller’s legislation would also assist schools and local units of government to sell unused property by allowing the land to be assessed at the same tax rate as agricultural land once purchased. Public land is property tax exempt, but under current law, once it is sold to a private developer, it is reassessed at its future value.
“Many properties will sit for years without sale, and this can be costly to maintain for school corporations and governments, ultimately costing taxpayers,” Miller said. “By allowing the newly purchased land to be assessed at the lower agricultural land rate for the first assessment period, this legislation could incentivize someone to purchase these unused properties.”
House Enrolled Act 1345 is now eligible for action by the governor. Visit iga.in.gov to learn more.
-30-
State Rep. Doug Miller (R-Elkhart) represents House District 48,
which includes portions of Elkhart County.
