Section 50IAC1-3-2. Exemption of public airports

   EXEMPTION OF PUBLIC AIRPORTS. IC 6-1.1-10-15 provides for an exemption from property taxes of land which is reasonably necessary to and used for public airport purposes, regardless of whether owned by a municipality, private individual, corporation or partnership, so long as the owner holds a valid and current public airport certificate issued by the Aeronautics Commission of Indiana.

  Land used for public airport purposes is limited to those portions of the airport complex, including improvements, namely: runways and taxiways, but does not include land areas used for crop production or other portions of the airport complex from which income is derived.

  Where the property is owned by a governmental unit, it will all be considered exempt and there will be no need to file for such exemption. Where the property is owned by an individual or entity other than a governmental unit, it will be necessary for the taxpayer to annually file a 136 petition, Application for Property Tax Exemption, with the local County Auditor.

  After conferring with the Aeronautics Commission, the following rules are offered for your guidance in determining the extent of the exempt property.

(1) Income producing property will be considered as non-exempt. Examples include hangar space and tie-down areas which may be rented, and land used for growing crops.

(2) Runways are exempt and we should adopt the Aeronautics Commission guides and consider the runway to have a 250 foot minimum width.

(3) Taxiways are also exempt, but are generally non-existent in small airports. Where they are found, the area should be clearly defined.

(Department of Local Government Finance; Real Property Directive 78-102; filed Jan 30, 1978, 4:09 pm: Rules and Regs. 1979, p. 427)