An Executive Order was signed Friday, March 19, 2020, by Indiana Governor Eric Holcomb in anticipation that the COVID-19 pandemic may negatively affect Hoosiers’ ability to timely pay their May property tax installment. Although property taxes remain due by May 11, 2020, and taxpayers are encouraged to make timely payments to provide funds for orderly government operations, Executive Order #20-005 requires all counties to waive delinquent payment penalties for property taxes paid within sixty (60) days thereafter. By this Order, penalties must be waived so long as the spring installment is paid on or before July 10, 2020. This waiver applies to both real and personal property tax liabilities. However, the Governor’s Executive Order does not extend the waiver obligation to a delinquency of tax payments which are escrowed by mortgage lenders and financial institutions.
While the waiver afforded by the Executive Order extends to late payment of personal property taxes, the deadline for filing State personal property tax returns remains May 15, 2020. Only if an extension is timely requested before that date may a taxpayer be given a thirty (30) day extension for filing their State personal property tax return. With an extension, the taxpayer has the opportunity to file their personal property tax return on or before June 14, 2020.
We continue to monitor new developments and will update you about tax considerations relating to the COVID-19 pandemic.
Please contact your KDDK attorney or any member of the KDDK tax planning practice team or real estate practice team for additional information and individualized guidance on this or any related topic.