Summary of 2019 Property Tax Legislation Passed by the Indiana General Assembly

Summary of 2019 Property Tax Legislation Passed by the Indiana General Assembly

Brent Auberry summarizes property tax legislation from the recently concluded 2019 session of the Indiana General Assembly.

The Indiana General Assembly concluded its 2019 legislative session last week, and several bills that passed address Indiana property tax issues, both procedural and substantive.  Below is a high level summary of several noteworthy bills.  Each bill has passed both legislative chambers, but most have not yet been signed by Governor Holcomb.  Many bills that are relevant to Indiana property tax matters are not included below, and this summary is not intended to be commentary on the merits of the legislation.

House Bill 1001 (State Budget bill)

  • Sections 102-104 add IC §§ 6-1.1-3-26 to -28: Requires development of a personal property tax online submission portal to provide a single point for submission and review of returns and related information. It shall be available for taxpayer use no later than January 1, 2021.

House Bill 1056

  • IC § 6-1.1-15-1.1, -1.2, -2.5, -3, -4, -5, eff. 1/1/20: Provides notice to and expands authorized participation by the county auditor for appeals involving matters within the auditor’s discretion.
  • IC § 6-1.1-15-4, eff. 1/1/20: Authorizes notice to the party or its representative in appeals to the Indiana Board of Tax Review (IBTR).
  • IC § 6-1.1-15-6, eff. 1/1/20: IBTR must file notice of completion of certified record within 45 days of the filing of an Indiana Tax Court petition; requires explanations for delays in filing; allows for a revised due date to file or, if delay is due to a cause within the petitioner’s control, dismissal of the petition.
  • IC § 6-1.5-3-4.5, eff. 1/1/20: Removes this section requiring IBTR to recommend settlement or mediation in certain appeals.

House Bill 1305

  • Provides for a $25 penalty for the late filing of schedules by owners or their agents of oil and gas interest, as well as a 10% penalty for failure to file within 30 days of the due date.

House Bill 1345

• IC § 6-1.1-4-12, eff. 1/1/20: “Land in inventory” acquired by a for-profit entity from a school corporation or local governmental unit shall be assessed at the agricultural rate as of the next assessment date following acquisition.
IC § 6-1.1-10-48, eff. upon passage and applies to assessment dates starting 1/1/17: Adds an exemption for property (i) owned by an Indiana non-profit public benefit corporation exempt from tax under IRC 501(c)(3), (ii) used in the operation of a nonprofit health, fitness, aquatics and community center, and (iii) funds have been in part provided under the regional cities initiative.

House Bill 1405

IC § 6-1.1-10-44, eff. 7/1/19: Increases the required investment for Indiana data centers from $10 Million to $25 Million in real and personal property; eliminates need for property to be located in a “high technology district area.”

House Bill 1427

IC § 6-1.1-4-12, eff. 1/1/20: Similar to HB 1345, if acquired from a local government unit, it applies only if the unit “has held the land for not less than three (3) years prior to the date on which the for-profit land developer acquires it from the local unit of government.”
IC § 6-1.1-11-3, eff. upon passage: Adding subsection (i), allows a person seeking an exemption under IC § 6-1.1-10-16 to file an application up to 30 days after the deadline, if the person pays (i) a late-fee of $25 for each day after the deadline or (ii) $250.
IC § 6-1.1-15-1.1, eff. 7/1/19: New June 15th appeal deadlines starting with 1/1/2019 assessments apply only to real property; for personal property, appeals must be filed within 45 days of the assessor’s mailing of the change of assessment notice (for modified assessments or the addition of personal property).
IC § 6-1.1-15-4, eff. 7/1/19: Requires IBTR to conduct a hearing within 1 year; limits extensions for IBTR to issue final determination to 180 days; excludes from the calculation of days various actions by parties; requires party to request an IBTR hearing before seeking a direct appeal to the Indiana Tax Court and to wait at least 60 days.
IC § 6-1.1-31-9, eff. 7/1/19: New DLGF rules may not apply to the assessment of a property contemporaneously being conducted under a county’s reassessment plan.

Senate Bill 233

IC § 6-1.1-3-7.2, eff. 7/1/19 (applies first to 1/1/20 assessment) – expands the exemption for personal property from $20,000 to $40,000 of acquisition cost. (Section 3 eliminates the optional $50 service fee by counties.)

Senate Bill 582

IC § 6-1.1-15-1.1, eff. 7/1/17 (retroactive). Adds subsection (h), prohibiting a taxpayer from challenging the legality or constitutionality of a (i) a user fee, (ii) any other charge, fee or rate imposed by a political subdivision, or (iii) any tax other than a property tax.
• IC § 33-23-1-10.5, eff. 12/1/15 (retroactive). Defines and lists various “user fees.”
• Assigns jurisdiction to user fee challenges to local courts.

The status of bills submitted to Governor Holcomb can be viewed here.

A list of all bills introduced in 2019 can be viewed here.

These materials are intended for general information purposes only and are not to be considered legal or tax advice. The information herein should not be acted upon without appropriate professional advice.

Image by rjshiflet.

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