Waiver of Penalties for Indiana Property Tax Payments Due May 11, 2020
On March 19, 2020, Indiana Gov. Eric Holcomb signed Executive Order (EO) 20-05 in response to the public health emergency related to the SARS-CoV-2 virus and incidence of COVID-19 providing for a waiver of penalties for delinquent property tax payments originally due on May 11, 2020.
Property taxes in Indiana are generally due in two equal installments on May 10 (spring installment) and November 10 (fall installment) of the year following the assessment year. Section 6, Paragraph B of EO 20-05 provides that while spring property tax payments remain due on May 11, 2020 (May 10 falls on a Sunday), counties are instructed to waive penalties for a period of 60 days on payments made after May 11, 2020. Therefore, Indiana taxpayers may pay their spring property tax payments up to and including July 10, 2020, without penalty. It should be noted that Indiana does not impose interest on late property tax payments.
The waiver of penalties applies to property tax liabilities for both real and personal property and thus would apply to businesses and individual taxpayers. However, it should be noted that EO 20-05 does provide that the waiver of penalties shall not apply to tax payments that have been escrowed by financial institutions on behalf of property taxpayers.
In addition, it should be noted that on April 23, 2020, Gov. Holcomb signed EO 20-23 that provides for an automatic extension of time until June 15, 2020, to file personal property tax returns that would have otherwise been due on May 15, 2020. This due date extension also applies to property tax abatement compliance statements as well as property tax incentive applications for enterprise zone investment deductions and entrepreneur and enterprise district abatement deductions for vacant buildings.
As with most topics related to COVID-19, changes are being made rapidly. Please note that this information is current as of the date of publication. For additional guidance on how the waiver of penalties related to delinquent spring 2020 property tax payments may affect you or your business, reach out to your BKD Trusted Advisor™ or use the Contact Us form below.