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Property Tax Changes for 2016

Posted 12:00 PM by

Significant legislative changes were made to Indiana property taxes in 2015, many of which should be considered when planning for 2016. For a complete list of updates, view the property tax overview in our 2015 Legislative Update.

Assessment Date Changed to Jan. 1

Indiana has historically had an assessment date of March 1 (i.e., taxpayers would pay property taxes on the assets they owned as of March 1). Beginning in 2016, this date will change. Taxpayers will be begin paying property taxes on the assets they own as of Jan. 1. The majority of U.S. states currently have a Jan. 1 assessment date, and Indiana will now begin joining them.

Exemption for Businesses with Less Than $20,000 in Assets

Starting in 2016, companies will be exempt from paying personal property taxes as long as the total cost of their assets located in a county is less than $20,000. Instead of filing the traditional Forms 103 and 104 annually, business taxpayers will start filing exemption affidavits annually. The exemption affidavit will not be a state-issued form but will require the name of the taxpayer, EIN, mailing address, phone number, e-mail, property address, and estimated acquisition cost of the personal property located in the county.

This affidavit will also need to be notarized. You can access a sample affidavit on the Indiana Department of Local Government Finance website. The due date for this affidavit is before May 15.

Duplicate Filing Requirement Removed for Property Values More Than $150,000

Beginning Jan. 1, 2016, taxpayers will no longer be required to file personal property forms in duplicate if the assessed value is greater than $150,000. Previously, if a business’ assessed value was greater than $150,000, then the business would be required to file Forms 103 and 104 in duplicate with the County Assessor’s office. This requirement will no longer exist in 2016.

Exemption Application for Non-Profit Organizations Due April 1

Certain nonprofit organizations need to file the exemption Form 136 every even year.  Previously, this form had a due date of on or before May 15 and typically would be filed with the organization’s personal property tax return. Beginning in 2016, the due date for this form will be on or before April 1. If an organization files this form late, they could be in jeopardy of losing their property tax exemption for that assessment year.

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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