Judicial status of property tax exemptions in Indiana

The purpose of this dissertation was to study the property tax and property tax exemptions in the United States and in Indiana. The main body of this dissertation, however, deals with the State of Indiana. The method of the study is primarily legalistic: the Constitution of Indiana, the laws of Indiana, and relevant decisions of the Indiana courts provide the major portion of the research material. These constitutional and statutory provisions were considered as to the manner in which they were interpreted by the judicial authorities of the State of Indiana.Taxes and taxation are areas of great concern in the United States today. As this concern has increased, more and more attention has been paid to the property tax. This tax provides much of the revenue of county and municipal governments in the United States and plays a very important part in our national revenue system.This tax has been severely castigated by numerous critics who have studied it over the years, with some of the strongest criticisms aimed at exemptions, which have been made from the taxes. Every state in the Union has provided for at least some categories of exemption, with most allowing fairly large amounts of property to be exempted. These categories of exemptions include the property of: the federal government, states, local governments, churches, charitable organizations, veterans, and others.Very much the same thing has been done in Indiana. The State Constitution gives the legislature the power to grant exemptions from the property tax through law. This has been done in all the categories listed above, as well as some others.The scope of a statute can be expanded or contracted trememdously by judicial interpretation. Judges can make new law through their decisions or greatly change the scope of laws already written.Indiana courts have interpreted the tax exemption statutes numerous times over the years. In the cases brought before them the courts have made certain rules to guide those who are applying for exemption. These rules have also let the taxing authorities know the meaning and scope of the tax exemption statutes.The courts in construing these statutes have read them in a strict manner and have not, as a rule, expanded their meaning through interpretation.The courts have held that all exemptions are a departure from the principle that all real estate should be taxed and construed them in a narrow manner. The courts have also considered them in the light of whether or not there is a public benefit involved.In looking at the numerous exemptions that have been granted by state law, the courts determine if this has been done under a constitutional grant of power. If there is a constitutional basis for the statute, the courts than look at other aspects of the law.The courts in Indiana have not contributed to the increase in the amount of tax exempt property in the state. This has been done by the State Legislature. The courts have construed the statutes in the way that they felt was intended by the legislature. If the amount of tax exempt property is to be decreased, it will have to be done by the legislative body of the state and not the courts.Thesis (D. Ed.