By Denise Gates, CPA
Manager, Tax Services
Last year the Indiana Legislature and Gov. Mike Pence made changes to the Indiana laws for personal property taxes. This resulted in some new requirements and opportunities for Hoosier taxpayers. Here’s what you need to know to prepare for the 2016 filing season.
New Assessment Date
Indiana has historically had a March 1st assessment date for Tangible Personal Property. However, beginning in 2016, the assessment date will change to January 1st. So for this tax cycle assets will be reported from March 2, 2015 to January 1, 2016. The filing due date remains the same, May 15th.
Exemption for Businesses with Less than $20,000 in Assets
Beginning in 2016, companies will be exempt from paying personal property tax in an Indiana county in which the company has less than $20,000 of total asset costs. An annual certificate of exemption must be filed with the appropriate Indiana county by May 15, 2016 and will replace the filing requirement of Form 103 and 104. This certificate of exemption is required to be filed annually and also must be notarized. Each county may adopt a local service fee of up to $50 for each taxpayer that files an annual certification with the County Assessor.
Duplicate Filing Requirement Removed for Property Values more than $150,000
Beginning January 1, 2016, taxpayers will no longer be required to file personal property tax forms in duplicate if the assessed value is greater than $150,000. Prior to 2016, if a business had an assessed value greater than $150,000, then the business was required to file Forms 103 and 104 in duplicate with the County Assessor’s office.
Filing Single Returns for Multiple Locations
Taxpayers with personal property in more than one township in the same county must now file a single tax return with the County Assessor and attach a schedule listing (by township) of all the taxpayer’s personal property and its assessed value.
Exemption Applications for Non-Profit Organizations Due April 1st
Certain nonprofit organizations file Form 136, Application for Property Tax Exemption, to exempt property from taxation. In prior years, this form was due on or before May 15th, and starting in 2016 must be filed by April 1st.
Enhanced Abatement on Qualifying Property
Enhanced abatements, sometimes called a super abatement, can now be granted for up to 20 years, up from the previous maximum of 10 years.
If you have any questions about the changes in Indiana personal property taxes, please call Denise Gates at (317) 613-7867 or email [email protected].