What Properties May Qualify for an Exemption?
Property may be granted an exemption if an Application for Property Tax Exemption (Form 136) has been timely filed and it is proven that the property qualifies for an exemption specifically identified by statute. Generally such statutes require ownership or occupancy of the property by a qualifying entity and use of the property for an exempt purpose as defined by laws which govern the decisions made by the Property Tax Assessment Board of Appeals (PTABOA).
Indiana Code 6-1.1-10-16 provides guidelines that aid in determining whether or not an entity is eligible for a tax exemption. Property that is owned, occupied and used for charitable, educational, religious, literary or scientific reasons may be eligible for a full or partial tax exemption.
What Must I File and When?
A Form 136 must be filed with the County Assessor by April 1st of the assessment year in which the property becomes eligible. With this application, the taxpayer is required to submit copies of the following documents:
- Articles of Incorporation or other organizational documents
- Financial Statements for the previous three years which includes balance sheets and summary of income and expenditure.
- Property Record Card (this document may be obtained from the County Assessor)
What Happens After I File?
PTABOA considers the application and issues a determination of approval, partial approval or denial. If denied, the taxpayer has the opportunity to appeal that decision to the Indiana Board of Tax Review (IBTR). To appeal a denial, the taxpayer must file a Petition to the IBTR for Review of Exemption (Form 132) within 45 days from the date the notice of rejection is given by the county PTABOA, and a copy must also be mailed to the county assessor.
How Often Do I File?
Once an exemption under IC 6-1.1-10-16 is granted for property which is owned, occupied and used by a person for charitable, educational, religious, literary or scientific purposes there is no need to refile unless a change in use, value, character or ownership occurs. If one of these changes occur, the change will not affect the property’s eligibility for an exemption for that assessment date. However, the entity that obtained the exemption or the current owner of the property must notify the County Assessor of the change in the year that the change occurs by filing Form 136-CO/U (Notice of Change of Ownership or Use of Exempt Property) with the County Assessor. The submission of this form aids the Assessor in knowing whether or not the exemption should remain in place or to remove the exemption in the following assessment year. If the exemption is removed, the County Assessor will notify the entity that filed or the new owner, if applicable, that a new Application for Property Tax Exemption (Form 136) will be required in the following assessment year to maintain, or initiate, the exempt status.
All forms can be found at Department of Local Government Finance (DLGF)