Buying with a property tax question. Due to seller being a church

[Mark Bradford]

Needing help to close a deal. Trying to buy a property that is no longer being used by a church for the last few years it has been empty. I'm in Indiana and so only know about our state and county tax.  And here is how this property is laid out; current tax assessment of land and building is 318k with a religious tax exemption. So current tax bill by the church (owner) is 50$ per year. Now a couple things you should know. My deal is contingent on the property getting the rezoning of residential classification.  So i plan to close on the property and have the rezoning already done. The owner is currently trying to get the property reassessed at a value of 200k. But religious tax exemptions get reattached or removed on May 1st of each year. I asked in my first offer that the seller pay a 9500$ tax payment at closing. This is in expectation that the religious tax exempt would be removed may 1st due to rezoning to residential and non church ownership when I buy it. Also the county assessor has informed me that even if I don't buy it the religious exemption will  be  removed anyway due to the fact that they have no church operating there anymore. They said no to my offer with the tax payment at closing. I would like to counter their offer but don't want to get stuck with a residential property worth about 100 k on tax assessment  but be taxed for 2014 taxes at 318k value. Any ideas what I should do to protect myself on this buy. Sorry for the long story and the bad writing LOL  I do better with face to face or by phone. Not an English major. 

[Richard Sanderson]

Mark:

I have to strongly agree with Ryan M. You need to be sure of how the local assessor is going to act on the subject property. In all states in the U.S. the local assessor decides which properties qualify for tax exempt status. And most states require that a property not only be owned by a religious organization BUT actively occupied or used by the religious organization. The local assessor in some states can re-instate the taxable status for up to three PRIOR years if the owner didn't qualify under the occupancy or use provision. Be sure that the current owner is responsible for all property taxes prior to the day of settlement.