City Council Denies Tax Exemption for Church-Owned Properties After Years of Inaction

In a recent meeting of the Property Tax Assessment Board of Appeals in Indianapolis, city officials faced pressing decisions regarding property tax exemptions for several parcels owned by a local church. The discussion revealed concerns about the church's failure to develop land it had owned for years, raising questions about its eligibility for tax exemptions.

The church in question has held three parcels since 2015 and 2018, with plans to build low-income housing for parishioners that have yet to materialize. Council members noted that the church had surpassed the timeline for development that would typically qualify them for an exemption. "They haven't done anything with them," one member remarked, highlighting the lack of progress on the promised housing.

As the conversation progressed, a motion was made to deny the tax exemption for the parcels in question. The board unanimously agreed, citing the church's inactivity and the parcels' status as tax sale properties. "They've been at some point paying them and then stopped paying them," another member pointed out, emphasizing the church's inconsistent tax payments.

In addition to the church's properties, the board also reviewed other parcels, including one leased to a charitable organization that provides housing for patients recovering from drug abuse. This property, owned by individuals Jerry and Nancy, was noted for its community service, contrasting sharply with the church's unfulfilled commitments.

The meeting also touched on a new hotel project downtown, which is currently exempt from property taxes. Questions arose about the future use of the hotel's first floor, with officials indicating that the developers would likely need to present a plan for any commercial spaces, as they may not qualify for the same exemption.

As the board wrapped up, members expressed a commitment to ensuring that properties receiving tax exemptions are actively contributing to the community. The decisions made during this meeting reflect a broader effort to hold property owners accountable and ensure that tax benefits are aligned with tangible community development.