For more than a decade, Indiana has expanded personal property tax relief for small businesses, churches and not-for-profit organizations.
The latest change takes effect this year, and Wayne County Assessor Tim Smith wants to ensure eligible businesses realize their savings. Any business with tangible personal property totaling less than $2 million is exempt from taxation; however, forms claiming that exemption must be filed by May 15.
According to Smith, tangible business personal property is the value of all property besides real estate. It includes production equipment, billboards and foundations for the equipment. Computer application software and registered vehicles subject to excise tax during licensure by the Indiana Bureau of Motor Vehicles do not qualify as tangible business personal property.
Indiana’s self-assessment system means the business or organization is responsible for filing the proper forms by mail to the assessor’s office at 401 E. Main St., Richmond, IN 47374 or in person at the office on the lower level of the Wayne County Administration Building.
Forms are available from the Wayne County or Wayne Township assessor’s offices, 401 E. Main St., Richmond, or online at www.in.gov/dlgf/forms/dlgf-forms/#Personal.
On the forms, those claiming the exemption should check the box located at the top of Page 1 on Forms 103 or 102; enter the total acquisition cost of the business personal property tax in that county; complete Sections I, II and IV; and accompany each Form 103 or 102 with a Form 104, according to Smith.
In another change, new assets acquired after Jan. 1, 2025, are not subject to the 30% depreciation floor from the acquisition cost. Therefore, businesses will be able to more fully depreciate personal property as it ages.
Smith also indicated that business closures or status changes must be reported to the Assessor’s Office and that the P-POP filing portal was discontinued effective Jan. 1 and will not accept new filings.
Indiana began exempting businesses from personal property taxes in 2015, when a $20,000 minimum was implemented. According to Larry DeBoer, a state tax expert in a May 2025 report for Purdue Extension, that exempted 147,300 Indiana businesses. Increasing the minimum to $40,000 in 2019 exempted another 28,300 businesses, and the 2021 increase to an $80,000 minimum exempted 34,000 more from paying tax.
Last year’s Senate Enrolled Act 1, which also addressed individual property taxes, pushed the exemption level to a 100-fold increase over even the 2015 initial minimum.
The move away from business personal property taxes puts Indiana on more even footing with Ohio and Illinois, which do not tax business equipment.
According to DeBoer, in a November 2025 Indiana Capital Chronicle article, counties with a higher share of business personal property taxes will see lower losses from the new exemptions, because they have more large businesses.
Max Smith, president of Wayne County Council, said the change has a big impact on smaller businesses and shifts more tax burden onto larger businesses. He does not expect a large revenue loss for Wayne County.
The tax rate, which is a ratio between the tax levy and assessed values, will increase, Max Smith said, so that taxpayers who have not yet reached the state-mandated property tax caps will pay a larger tax burden.
A version of this article appeared in the February 11 2026 print edition of the Western Wayne News.