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State & Local Tax Update: Indiana Increases Business Personal Property Tax Exemption

Posted 12:05 PM by

As is the case after every legislative session, taxpayers will see gains and losses. When it comes to personal property tax in Indiana, small business taxpayers will certainly gain.

The Indiana General Assembly has increased the business personal property tax exemption from $20,000 to $40,000 of taxable personal property cost per county. 

This exemption is to be used for small business taxpayers with less than $40,000 of taxable cost. This change will take place starting with the 2020 property tax filing and will not include returns that are due May 15, 2019.

All taxpayers who claim this exemption will file a property tax return, which includes the following:

  1. A declaration that the taxpayer’s business personal property in the county is exempt from property taxation (We believe this will continue to be checking the box on the top of the property tax return (Form 103).)
  2. An indication that the taxpayer’s business personal property within the county is in one location or multiple locations
  3. As currently required, an address for the location of the business personal property

Finally, the Indiana General Assembly eliminated the maximum $50 local service fee that may be imposed by counties on taxpayers that file a personal property tax return claiming the personal property exemption.

About the Author
Tim Cook is the partner-in-charge of Katz, Sapper & Miller's State and Local Tax Group. Tim assists clients with complex business restructurings, negotiates settlements at both the audit and appeals level, and provides tax advocacy services. He also works closely with companies during the site selection process, helping them make data-driven location decisions while fully leveraging economic incentives. Connect with him 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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