Potentially delayed property tax payments due to COVID-19 could leave local municipalities with financial uncertainty in the short term.
While the spring deadline for Indiana property taxes is still May 11, Gov. Eric Holcomb in an executive order instructed counties to waive any fees or penalties typically assessed on late payments for an additional 60 days, through July 10. As of now, the fall deadline is still Nov. 10 with no extension of waived penalties.
Grant County Treasurer Tiffany Griffith said her office is complying with the order and is working through how settlements and other processes will work. She said she is wondering how spring collections will be impacted and still encouraged taxpayers to pay before the deadline if they’re able to help the community during this time of crisis.
“Without the tax payments, schools, fire departments, police departments, township trustees, public libraries, etc. may not get the funds they need to operate,” she said. “This also means the health departments may be short on funds to distribute vaccinations for COVID-19 when one becomes available.”
At a school board meeting last week, Mississinewa Superintendent Tab McKenzie said the corporation was considering putting some of the more extensive summer projects, like a $200,000 HVAC project at Northview Elementary School, on hold due to the uncertainty of when tax receipts would come in.
“We’re a little bit concerned with spending money that we haven’t received yet,” McKenzie said.
Griffith said at this point there is no way to tell how the county might be affected by delayed property tax payments, but she is taking a proactive approach in the meantime.
“I am working with the Association of Indiana Counties to compile financial information to send in order to help them assess what we may face during this current spring collection cycle,” she said.
The Treasurer’s office was already receiving calls and messages on social media about any available help for late tax payments before the governor’s order, Griffith said. Though the change may delay funds being available for local governments, Griffith said she is glad the waiving of penalties can bring some relief to individuals and small businesses.
“We understand that citizens face hardships every day that we may not be aware of,” Griffith said. “...This waiving of penalties can help bring a sigh of relief for individuals who have lost their jobs or had to close their businesses and therefore simply cannot meet the May 11 deadline.”
Since the county building is closed to the public, Griffith said her office’s operations have transitioned to more phone calls and emails as face to face interactions have stopped. She said tax statements will be going out by April 15, and the office is in communication with state and local officials to stay current with the latest updates on procedures and policies.
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