datapitstop » Grant County Government, Indiana » Treasurer »Help/FAQDirectory
Sarah A Melford
401 S. Adams St. Rm 229
Marion, IN 46953
(765) 668-6556
Office hours: 8:00 a.m. - 4:00 p.m. Monday-Friday
Email: treasurer@grantcounty.net
Website: www.treasurer.grantcounty27.us
Help/FAQ
How are late payment penalty amounts calculated?
UPDATED 4-13-10
Grant County typically collects property taxes annually in two equal installments - Taxpayers must pay a 5 percent penalty for late payment if they make payment within the first 30 days following the deadline and do not have delinquent taxes on the same parcel from the previous year. The penalty returns to 10 percent for payments made after the first 30 days or for payments made on parcels with late taxes from the previous year.

Penalties are added on delinquent tax amounts only (penalties are not charged on existing penalty amounts) each time that a due date is missed, except for when the first installment of the current year is still delinquent after the second installment due date has passed. Penalties are only assessed once per installment for the year that the taxes are first due. This means that the maximum late-payment penalty for the first installment of the current year is 10%, even if payment for those taxes is not made by the second installment due date. In succeeding years 10% penalty is assessed for the missed due date for both installments.

The reduction of penalties benefits property owners who forgot or overlooked payment of property taxes. If paid within the first 30 days, a taxpayer who has no late taxes from the previous year is only required to pay a 5 percent penalty for late payment. Although the penalty returns to 10 percent after 30 days, this month of reduced penalty limits the cost of the mistake to those who forgot or overlooked the payment. Taxpayers continue to remain eligible for the reduced penalty as long as they are not liable for any delinquent taxes on the same parcel from a prior installment.

The change in the penalty percentages does not change the process for paying taxes. Property owners should make payment to the Grant County Treasurer in the same manner in which they have in the past.

Following the due date for property taxes, Grant County will review all parcels that are past due. Those with no prior year delinquencies will qualify for a 5 percent penalty for the first 30-days following the due date. Those with a delinquency on the parcel in a prior installment will not qualify.

Eligibility for reduced penalty is determined on a parcel-by-parcel basis. A taxpayer who owns multiple parcels may qualify for reduced penalty on one parcel with no prior year delinquency and not qualify on another that has a prior year delinquency.

Q: When is the new reduction in penalties effective?

A: The reduction of penalties becomes effective for taxes first payable after Jan. 1, 2007. In the past, taxpayers who missed property tax deadlines faced a 10 percent penalty for late payment immediately following the due date. However, after Jan. 1, 2007, taxpayers face a 5 percent penalty for late payment if they make payment within the first 30 days following the deadline and do not have delinquent taxes on the same parcel from a previous installment. The penalty returns to 10 percent for payments made after the first 30 days or for payments made on parcels with late taxes from a previous installment.

Q: Does the 30-day reduction in penalties apply to both real and personal property?

A: The reduction of penalties does apply to both real and personal property taxes. The reduction in penalties does not change the penalty for failure to file a personal property return.

Q: When does a taxpayer become ineligible for the reduction in penalties?

A: A taxpayer who has no late taxes from a previous installment is only required to pay a 5 percent penalty for late payment on taxes first payable after Jan. 1, 2007. Although the penalty returns to 10 percent after 30 days, this month of reduced penalty limits the cost of the mistake to those who forgot or overlooked the payment of taxes. Taxpayers continue to remain eligible for the phased-in penalty as long as they are not liable for taxes on the parcel from a prior installment. A delinquent payment in the first installment does not disqualify a property owner from the 30-day decreased penalty on the second installment.

Q: If a taxpayer has multiple parcels, is he or she still eligible for the reduction?

A: Eligibility for reduced penalty is determined on a parcel-by-parcel basis. A taxpayer who owns multiple parcels may qualify for reduced penalty on one parcel with no prior installment delinquency and not qualify on another that has a prior installment delinquency.

Q: What does the taxpayer file to receive the reduction in penalties?

A: Taxpayers are not required to file for the reduction in penalties.

Grant County calculates the reduction automatically for qualifying property. Taxpayers continue to remain eligible for the phased-in penalty as long as they are not liable for any delinquent taxes on the parcel from a prior installment.



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