The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-10-18

and valued at s5O,210 and on the
northwest corner Of Talbot and
Nineteenth streets. owned by But
Ter university, valued at S20, TOO.
Unusual Situation Cited
The southeast and southwest cor
ners of Washington and Alabama
streets. having a combined value OF
sf5415O. are owned by the Home
Mission and Sunday school Of the
PRESBYTERIAN church, on deed
from the estate of George B.
Yandes.
Various qualifications Of the ex-
enption law have led to many I'M
usual situations, but none surpasses
that existing in the property occu-
pied by the Guarantee Tire and
Rubber Company, on South Illinois
street
Half Of the building is on proper
ty owned by the MalOtt family and
the other half on ground owned by
the Presbyterian Home Mission
through deed from Mr.. Yandes.
Taxes Paid on Half
The division line Of the property
cuts exactly through the middle OF
the store. Taxes are paid on the
Malott half, while the Presbyterian
property is exempt from taxation
on $55, $50 valuation.
In potential revenue, these ex-
amples represent total of $780,
lis, it is estimated. If this sum
were to be added to tax revenue,
the proposed 1884 levy for Indian
apolis, Center township, could be
reduced approximately 2 cents,
equal to the entire reduction made
by the county adjustment board
after a weeks budget study
It is not the law itself which is
denounced by tax experts, because
they find no fault with the eXemp-
ton Of churches, schools and the
homes Of fraternal orders.
Declaring the law has been
abused" tax authorities attack the
interpretations" and rulings of the
state tax board which have paved
the way for commercial enterprises
to shift the tax burden to the Shout
ders of competitors.
It is estimated that the total
valuation of property placed within
scope Of the exemption law is $685.
100000 although only 100000
represents property actually used by
benevolent and educational groups.
Tax experts point out that the
use Of the exemption law has grown
Fapidly since the state tax board
extended the provisions to include
all property in the name of insti-
buttons. whether used in their work
or merely held as an income pro-
ducing source.
Owner Retains Income
1t is possible for property owners
to deed their holdings to an insti-
tuition with the provision that they
retain the income for the remainder
of their lives. tax experts explain.
Under this arrangement the prop
erty is tax free. while the owner re-
tains the income, in many cases
considerably increased because of
the elimination of taxes.
The lease contract Of sale" Is an
other method by which advantage
is taken of exemption provisions.
Property can be purchased from an
institution on such a contract. but
the property remains in the inSti-
tutionS name, and tax free, for an
indefinite period. BY withholding
a small portion of the final pay
ment, the buyer may obtain benefit
of the exemption for years, it is
charged.
Limited on Exemption
For a number of years. property
such as the Odd Fellow building
and the Athletic Club were given
an exemption on the basis of the
space actually used for fraternal
and educational purposes.
Under this arrangement, the Odd
Fellow lodge paid taxes on only
78 per cent valuation, after assessors
found that % per cent of the build
ing was used for lodge purposes.
The gymnasium and swimming
pool at the Athletic Club, in which
training was given, were held to
be educational and entitled to tax
exemption.
Later. all Of the Odd Fellow
building. with its ground floor
storerooms and upper floor offices,
was declared exempt, and the Ath-
letic Club exemption was extended
to rs per cent of the valuation.
The K. of p. building at Pennsyl-
vania and Massachusetts avenue
still is taxed at valuation of $685.
600. after a % per cent exemption,
but extension of the exemption to
the entire building is expected
which would reduce tax revenues
by nearly S11.5O0.
Each addition to the exemption
list paves the way for a dozen APP
peals to the state board for similar
rulings or notifications in existing
valuations. tax experts declare.
Every reduction in valuation de-
creaSeS tax revenues. which only
can be maintained by raising the
tax rates, it is pointed out.
How the state tax boards rul-
ings have altered valuations, and
the effect on taxpaverS will be re-