Property Tax Alert: Indiana

April 2006

Effective March 24, 2006, property tax rates may be calculated using a reduced assessed value for property to reflect the effects of pending property tax appeals. Effective retroactive to January 1, 2006, land in a developer's inventory may not be reassessed until the next assessment date after the earlier of (1) the date on which land is transferred to a non-developer; (2) the date on which construction begins; or (3) the date on which the building permit is issued. Currently, such land may not be assessed until the next change of title.

In addition, a new personal property section is added effective retroactive to January 1, 2006, it requires assessing officials to adjust personal property assessments when an error is discovered and process a refund or credit for overpayments. Also effective retroactive to January 1, 2006, a taxpayer that claims a personal property tax deduction for a coal conversion system, fertilizer, or pesticide storage, must file a statement between March 1 and June 10 (previously, May 15).

Please contact Rash & Associates for more information.