Section 36-4-3-8.5 - Tax abatement in annexed territory; ordinance; required provisions(a) A municipality may, in an ordinance adopted under section 3 or 4 of this chapter, abate a portion of the property tax liability under IC 6-1.1 for municipal purposes for all property owners in the annexed territory.(b) An ordinance adopted under subsection (a) must provide the following: (1) A tax abatement program that is in effect for not more than three (3) taxable years after an annexation occurs.(2) Except single family residential property described by subdivision (3), a tax abatement for all classes of property that does not exceed:(A) seventy-five percent (75%) of a taxpayer's liability in the first year of the abatement program;(B) fifty percent (50%) of a taxpayer's liability in the second year of the abatement program; and(C) twenty-five percent (25%) of a taxpayer's liability in the third year of the abatement program.(3) For a county having a population of more than two hundred fifty thousand (250,000) and less than three hundred thousand (300,000), a tax abatement for single family residential property that does not exceed:(A) ninety percent (90%) of a taxpayer's liability in the first year of the abatement program;(B) eighty percent (80%) of a taxpayer's liability in the second year of the abatement program;(C) sixty percent (60%) of a taxpayer's liability in the third year of the abatement program;(D) forty percent (40%) of a taxpayer's liability in the fourth year of the abatement program; and(E) twenty percent (20%) of a taxpayer's liability in the fifth year of the abatement program.(4) The procedure by which an eligible property owner receives a tax abatement under this section.Amended by P.L. 104-2022,SEC. 157, eff. 4/1/2022.Amended by P.L. 119-2012, SEC. 187, eff. 4/1/2012.As added by P.L. 379-1987 (ss), SEC.13. Amended by P.L. 56-1988, SEC.12; P.L. 12-1992, SEC.157; P.L. 231-1996, SEC.2; P.L. 255-1997 (ss), SEC.12.