Ousted! “League Commissioner” ejects affiliated companies from Taxpayer’s consolidated income tax reporting team due to insufficient Indiana “on-court” presence (or Nexus)

The Indiana Department of Revenue (in the spirit of this posting, the “League Commissioner” or just “Commissioner”) determined that two affiliated companies should not have been on the same team as the Indiana Taxpayer and removed them from the Taxpayer’s consolidated income tax … [Read more...]

A tale of two assessments: Indiana Board of Tax Review clarifies the new “5% rule” shifting the burden of proof for property tax appeals

It was the best of assessments, it was the worst of assessments.  At least from the perspective of the owners of a home fronting a lake channel, the Indiana Board of Tax Review’s decision on April 24, 2012 was the best of assessments, as the Board lowered the property’s assessed value from … [Read more...]

Property tax appeal for lakefront home purchased in “short sale” falls short – Indiana Board of Tax Review finds that seller’s “financial duress” and limited marketing time for property sold at auction compromised reliability of comparable sales

Taxpayers acquired a lakefront home at auction in 2009 and challenged the property's assessed value.  The Knechts relied on the price that they paid for the property in a “short sale,” as well as on two appraisals prepared in conjunction with obtaining financing.  The date of … [Read more...]

Department of Revenue finds that design software was used in “pre-production” and not exempt from Indiana sales tax

In Letter of Findings 04-20110391 (posted April 25, 2012), the Indiana Department of Revenue found that software and related items used to design plastic injection molds, tools and dies were used in “pre-production” and therefore not exempt from sales tax.  Indiana exempts from sales tax the … [Read more...]

Indiana RV owner outruns 100% fraud penalty and use tax on 3 vehicles purchased with Montana LLC, where assessments were issued beyond statute of limitations

Montana is called “The Treasure State,” but the Indiana Department of Revenue charged an Indiana resident with fraud in using a Montana LLC to make the “Hoosier State” a “State of Lost Treasure.”  In its Letter of Findings No. 04-20110450 released last month, the Department … [Read more...]

The shifting burdens of Indiana assessment appeals: New “5% rule” may shift the burden of proof multiple times

Who has the burden to prove a property tax assessment is correct on appeal?  Before July 1, 2009, the answer was nearly always the taxpayer at both levels of appeal – local and state.  But the Indiana General Assembly passed a "burden-shifting" statute that placed the burden on the assessor if the … [Read more...]