Indiana Code 6-1.1-10-6. Municipally owned water company property

Sec. 6. (a) Property which is owned by a domestic corporation of this state is exempt from property taxation if:

(1) the corporation owns a water system or waterworks;

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Contract: A legal written agreement that becomes binding when signed.
Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
Property: includes personal and real property. See Indiana Code 1-1-4-5
Year: means a calendar year, unless otherwise expressed. See Indiana Code 1-1-4-5

(2) the corporation is, pursuant to a contract, supplying its entire output of water at wholesale rates to a city or town of this state; and

(3) the city or town which receives the water owns at least ninety-five percent (95%) of the corporation’s capital stock.

(b) For purposes of this section, stock is preferred stock and not capital stock if:

(1) fixed dividends are payable to the stock owner at a rate not to exceed six percent (6%) per year; and

(2) the stock owner has no further right to participate in the profits of the corporation.

[Pre-1975 Property Tax Recodification Citation: 6-1-15-1.]

Formerly: Acts 1975, P.L.47, SEC.1.