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How is the value of property assessed for tax purposes in your state? Which types of property are subject to tax?
Property is assessed based on market value in use, which is generally considered market value for the property’s current use. Real property, both land and improvements, is subject to tax, with specified statutory exceptions. Business personal property, excluding inventory, is subject to tax, with specified statutory exceptions.
What is the state property tax rate?
There is no state property tax rate.
What is the range of local property tax rates levied in your state?
The rate is determined at a local level based on the assessed value within the taxing unit and the budgeted expenses. As a result, the rates vary among and within Indiana’s 92 counties, but are also subject to state constitutional caps, which, in general terms, include residential property (1% of assessed value), rental property (2%), and business property (3% of assessed value).
Exemptions and deductions
What exemptions and deductions are available?
There are numerous exemptions and deductions for property tax purposes. Subject to various limitations, there are (for example) exemptions for state and municipal property, bridges, airports, certain property used in supplying water or disposing of sewage and waste, air pollution control equipment, and certain non-profit uses. There are deductions for mortgages and for a homestead, the military, the elderly (aged 65 and over), the blind and disabled, veterans and surviving spouses, certain rehabilitated property, and solar, geothermal, and wind powered property, among others.
What filing requirements and procedures apply?
Business taxpayers generally are required to file a business personal property tax return each year by 15 May with the county or township assessor of the county in which the property is located (a 30-day extension may be allowed in some cases). An amended return may be filed within 12 months, but may receive only a 90% credit if filed more than six months after the original or extended filing date.
There may be additional filing requirements depending upon the positions taken on the return. For example, a claim of exemption for water pollution control equipment must also be filed with the Indiana Department of Environmental Management. Further, while real property taxes are assessed without the taxpayer first filing a return, there are various filing requirements for appeals, to claim deductions, exemptions, etc. As another example, property tax abatement deductions are subject to specific procedures that require initial filings, as well as continued compliance filings.
Real estate transfer tax
How is the transfer of real estate taxed in your state (including tax base, rates, exemptions, and filing formalities)?
Indiana does not have a real estate transfer tax. A transfer may generate income subject to the adjusted gross income tax.
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