FOR IMMEDIATE RELEASE

May 4, 2023

If a taxpayer believes that he is entitled to some type of adjustment to his personal property assessment, in some situations, they may be able to claim abnormal obsolescence. A taxpayer must be able to: (1) identify the cause of the obsolescence and (2) quantify the amount of the obsolescence adjustment to be applied.

The quantification of the amount to be adjusted cannot simply be a requested percentage with no evidence to support it and it cannot be a calculation that does not follow generally accepted appraisal principles. The quantification must tie the actual loss in value suffered by the asset(s). For example, when identifying the factors that caused the obsolescence, a taxpayer must show the causes of the obsolescence also caused an actual loss of value to the property.

How do I claim abnormal obsolescence?

An adjustment for abnormal obsolescence can be claimed on either the original personal property return or an amended return. Typically, the taxpayer attaches a Form 106 to the property tax return to explain the cause of the obsolescence and then attaches the supporting documentation/evidence to substantiate the claim. The final adjustment is disclosed on the property tax return (Form 102 – Line 57 or Form 103-Long – Line 61)

Will the assessor notify me if my request is accepted?

If the adjustment is property claimed and disclosed on the property tax return, it is the official assessment of record. The assessor will then review the assessment on that return and only notify you if the assessed value that you claimed on the return is changed.

What happens if the assessor does not accept my request and denies my claim?

If the assessor denies your claim for abnormal obsolescence, a notice (Form 113/PP) must be sent to you which makes you aware of the change to your assessment. Indiana law allows you 45 days to challenge that notice through the appeals process. During the appeal, both the taxpayer and the assessor will have the opportunity to present their case and to challenge the evidence/ testimony of the opposing party.

Are there any other resources available to help me learn more about abnormal obsolescence?

The Indiana Board of Tax Review (IBTR) issues decisions on a variety of assessment issues. While these decisions are fact/case specific, they can provide insight into what did or did not merit abnormal obsolescence.

What is PPOP-IN?

Taxpayers and their authorized agents now have the option to file their personal property Forms 102, 103-Short, 103-Long, 103-N, 103-O, 104, and 106 online in the new PPOP-IN. Taxpayers also can upload additional personal property forms and any necessary supporting documentation. Taxpayers have until Monday, May 15, 2023, to file their business personal property filings either online at https://ppopin.in.gov or by the traditional paper forms.

I need help. Who can I call?

Taxpayers may hire a tax professional such as a CPA to assist them with their filing. You may also contact your township or county assessor with questions. Their contact information can be found here.

PPOP-IN Status Updates

The Department will be sending out regular communications to various stakeholders over the next several months. We want you to stay informed of all the changes. If you received this email, you are all set. If you received this message from another individual, please register your email address.