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KSM Blog | Katz, Sapper & Miller CPA

COVID-19 Relief for Indiana Property Owners

Posted 7:00 PM by

With property tax deadlines looming, Indiana property owners are looking for relief in the midst of the COVID-19 crisis. From payment extensions to potential assessment adjustments, there are options that could alleviate immediate financial obligations.

Real property taxes payable in 2020

In Executive Order 20-05, Indiana Gov. Eric Holcomb officially extended the 2020 spring installment tax bill. The spring installment tax bill remains due May 11, 2020; however, counties will waive penalties on payments made after May 11, 2020, for a period of 60 days. Interest is not applicable. This waiver does not apply to tax payments which have been escrowed by financial institutions on behalf of property taxpayers.

Assessment revaluation options due financial hardship created by COVID -19

In Indiana, many real properties’ assessed values are primarily based upon the income approach to value. If there was a significant loss of income during 2020 related to your real estate, you may be eligible to petition for revaluation of your assessment to adjust specifically for the loss of income that occurred during the COVID-19 pandemic. If successful, it would impact the real estate taxes due in 2021 based on the 2020 values. To determine if a petition is warranted, you should compare the estimated value of the property (calculated using the 2020 financials) to the 2020 assessment itself. If the 2020 assessment is the higher value, you should consider petitioning for reevaluation.

Personal property tax filings

The deadline to file Indiana personal property tax returns for the 2020-pay-2021 cycle remains May 15. However, a request for a 30-day extension to file the personal property tax return may be granted by the county assessor if submitted in writing on or before May 15. The Indiana Department of Local Government Finance is encouraging assessors to grant this extension and give the taxpayer until June 14, 2020, to make a timely personal property tax filing. The decision to grant the extension will be made on a county-by-county basis. Currently, a handful of counties – including Marion, LaPorte, and Allen – are giving all taxpayers until June 14, 2020, to file their 2020 personal property tax return without having to request this extension in writing.

We continue to monitor property tax developments as they relate to COVID-19 relief initiatives and will provide updates as information becomes available. If you have questions about how these relief options apply to your specific situation, please contact our property tax specialists.

VISIT THE KSM COVID-19 RESOURCE CENTER

About the Author
Donna Niesen is a partner in Katz, Sapper & Miller’s State and Local Tax Group. Donna helps keep clients up-to-date on the multitude of tax rules and requirements in all 50 states. She guides them in the right direction as they address the complex issues that emerge on both the state and local levels. Connect with her on LinkedIn.

  

About the Author
Chad Miller is the property tax practice leader in Katz Sapper & Miller’s State and Local Tax Group. From personal property tax and abatement compliance to Tax Increment Finance analysis, Chad provides clients with a full range of property tax services designed to minimize expenses and maximize profitability. Connect with him on LinkedIn.

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