In Indiana, all businesses and organizations, including churches and nonprofit organizations, are required to file business tangible personal property returns every year with the assessor’s office of the applicable county. Business personal property consists of all property, other than real estate, used in a business, trade, or organization. When filing these forms, each taxpayer must self-assess the value of all business personal property, which can later be adjusted by the assessor if the self-assessed values are deemed to be inaccurate.
Notably, if the cost of all of a business’s or organization’s business personal property is less than $80,000, the business or organization is entitled to a business personal property exemption. To obtain the exemption, a taxpayer is required to include on their tax return:
1) a declaration that the taxpayer’s business personal property in the county is exempt from taxation,
2) whether taxpayer’s business personal property within the county is in one or multiple locations, and
3) an address for the location of the property.
Notably, until now, regardless of the availability and previous application of the exemption, taxpayers had to file and obtain the exemption each year.
However, due to new legislation found at Section 6-1.1-3-7.2 of the Indiana Code, effective January 1, 2023, once a taxpayer files a business personal property tax return and claims the exemption, the taxpayer will no longer have to file a business personal property tax return in following assessment years until and unless the taxpayer no longer meets the requirements of the exemption.
What does this mean for businesses and other organizations?
If, in 2022, you filed your business personal property tax return and claimed the exemption and the exemption still applies, you are not required to file in 2023. Further, you will not be required to file in subsequent years so long as the cost of your business personal property remains less than $80,000.00.