A business may be able to significantly reduce its Indiana personal property tax bill if it can demonstrate that its property suffers from a condition known as "abnormal obsolescence."

Indiana law recognizes that depreciable personal property can suffer a decrease in taxable value (abnormal obsolescence) as a result of factors "over which the taxpayer has no control" and which are "unanticipated, unexpected, and cannot reasonably be foreseen…" and are "of a nonrecurring nature," including "unforeseen changes in market values."

As a result of the recent precipitous and, for some industries, calamitous, downturn in the economy, many businesses may be able to take advantage of this valuation adjustment.

However, time is of the essence because abnormal obsolescence adjustment claims must be made (and properly quantified and documented) on a taxpayer's personal property tax return, and due date for the 2009 return is May 15.