The Indiana Legislature has established new procedures for non-profit tax-exempt entities to file for property (both real and personal) tax exempt status. The exemption generally sought is permitted under IC 6-1.1-10-16. This statute relates to non-profit corporations whose stated purpose involves education, literary, scientific, religious or charitable purpose, also commonly known as a 501(c)(3) entity.
Under the previous version of IC 6-1.1-11-3, a tax exempt entity was required to file a certified application for exemption, commonly referred to as Form 136, with the County Assessor on or before May 15. Failure to file the application by the May 15 deadline resulted in a waiver of the tax exemption for that particular year.
Effective January 1, 2016, the filing deadline has been moved up significantly. The statute now requires that a non-profit corporation seeking an exemption of property taxes must file its application with the County Assessor on or before April 1 of each year. This is a full six (6) weeks earlier than previously required filing deadline. As before, failure to timely file the application will result in a waiver of the property tax exemption for that particular year.
It is extremely important for non-profit tax exempt organizations seeking a property tax exemption to be aware of this change in the filing deadline. Non-profit tax exempt organizations are accustomed to filing their Form 136 on or before May 15 of the year. Failure to file the application for tax exemption on or before April 1 will result in the removal of the tax exemption.
If you have questions regarding the contents of this article, or other similar issues, please contact your HWE relationship attorney or visit us at http://www.hwelaw.com.