Nonprofit Property Taxes
Posted on Wednesday, January 29, 2014
Note> Although some of the following information may pertain to all counties in the state of Indiana, it is specific to Allen County, Indiana.
Certain property that is owned, occupied and used predominately for charitable, religious, educational or scientific purposes may be exempt from property taxation. Processing exemption applications is a function of the Property Tax Assessment Board of Appeals by Indiana statute. To obtain an exemption, the property owner must file an Application for Property Tax Exemption (Form 136) with the county assessor where the property is located. A separate exemption must be filed for each parcel of property (location). The application must be filed on or before May 15th of the assessment year. In order to prove that the property qualifies for exemption, the following documentation must be submitted with the application.
- Articles of incorporation or other organizational documents
- Financial statements for the last three years including balance sheets and summaries of income and expenses
- Predominate Use Worksheet for land and building requesting exemption
Applications for exemption used to be required every two years but due to a change in legislature in 2009, an application for exemption is no longer required every two years. However, the property under exemption must continue to meet the requirements for an exemption under Indiana Code 6-1.1-10-16 or Indiana Code 6-1.1-10-21, and an application must have been properly filed at least once.
Change in Ownership
If title to property changes or the property is used for a non-exempt purpose, the person who obtained the exemption, or the current owner, must notify the county assessor in the year that the change occurs. Notice of Change of Ownership or Use of Exempt Property should be completed and filed with the county assessor where the property is located.
Personal Property Taxes
Although most nonprofit organizations do receive exemption from property taxes, they are still required to file the proper property tax returns, including Business Tangible Personal Property Assessment Return (Form 103 - Long Form or Form 103 - Short Form) and Business Tangible Personal Property Return (Form 104) by May 15th of each year. The assessment date for these returns is March 1st. Amended returns are allowed within six months (November 15th) from the date of the original return but only for timely filed original returns.
An exemption is a privilege which is waived if the owner does not comply with procedures for obtaining an exemption thus subjecting the property to taxation. Make sure your organization follows the proper procedures to receive its exemption.
For additional information on nonprofit property taxes, see Property Tax Exemption on Real Estate.
Posted by: Carrie Minnich, CPA
Posted in Mission Minded Nonprofits
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