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Not-for-Profit Exemptions
Indiana Code 6-1.1-10-16 describes the use and/or purpose necessary to become tax exempt. Organizations such as charitable, educational, religious may be eligible for tax exemption. An exemption must be timely filed or it will be deemed waived. Exemptions must be filed on or before May 15th with the County Assessor.
To apply, a Form 136, (State Form Number 9284, Application for Property Tax Exemption: Complete application includes State Forms 9284 ) must be filed along with copies of:
- By-laws
- Articles of Incorporation
- Financial Statements for the previous three (3) years*
Balance sheets
Summary of income and expenditures
- Exemption letter and other relevant documents from the IRS.
- Property Record Card (This document may be obtained from the Township Assessor)
* If the church objects to releasing financial information, the church may write a letter to the PTABOA stating its objections.
The Marion County Property Tax Assessment Board of Appeals (PTABOA) will, after careful consideration, approve or deny the application. Notice of the determination of the PTABOA will be sent to the petitioner. A denial can be appealed to the Indiana Board of Tax Review within thirty days of the denial notice.
Exemptions are filed on a two-year cycle fallin on even numbered years (I.C. 6-1.1-11-3.5b). (i.e. 2004,2006, etc.) If a not-for-profit corporation files in-between the two-(2) year cycle, they must file again on the year in which the next cycle begins. (E.g., an organization files for the first time in 2005. They must file again in 2006 and then every two years hence.)
Churches need not file after receiving an approval unless status of the property changes or new properties are acquired. (E.g.,additional property is now owned, property has been sold, the owner no longer qualifies for an exemption, additional improvements have been added, etc.).
Churches and some other religious properties are generally exempt from property tax in Indiana. I.C.6-1.1-10-16(a) provides: "All or part of a building is exempt from property taxation if it is owned, occupied, and used by a person for educational, literacy, scientific, religious, or charitable purposes."
Church property may qualify under IRS and Indiana income tax guidelines for exemption and not qualify under property tax guidelines for exemption. Information on income tax for Not-For-Profit Organizations is contained in Information Bulletin #17 and form IT-35A from the Department of Revenue.
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