The Constitutional Amendment to Allow The General Assembly to Exempt Inventories and Residential Real Property from the Property Tax

The 112^th and 113^th General Assemblies agreed to a resolution to amend the Indiana Constitution.  It will be put to a statewide vote in November, 2004. 

Crossed out words are to be eliminated, bold words are to be added.

SECTION 2. ARTICLE 10, SECTION 1 OF THE CONSTITUTION OF THE STATE OF INDIANA IS AMENDED TO READ AS FOLLOWS: Section 1. (a) The General Assembly shall provide, by law, for a uniform and equal rate of property assessment and taxation and shall prescribe regulations to secure a just valuation for taxation of all property, both real and personal. The General Assembly may exempt from property taxation any property in any of the following classes:

        (1) Property being used for municipal, educational, literary, scientific, religious, or charitable purposes.

        (2) Tangible personal property other than property being held for sale in the ordinary course of a trade or business, property being held used or consumed in connection with the production of income or property being held as an investment.

        (3) Intangible personal property.

         (4) Tangible real property, including curtilage, used as a principal place of residence by an:

            (A) owner of the property;

            (B) individual who is buying the tangible real property under a contract; or

            (C) individual who has a beneficial interest in the owner of the tangible real property.

    (b) The General Assembly may exempt any motor vehicles, mobile homes, airplanes, boats, trailers, or similar property, provided that an excise tax in lieu of the property tax is substituted therefor.