Indiana Property Tax Relief Available for Flood-Damaged Properties

At a Glance

• In August 2026, significant flooding struck northwest Indiana and central Indiana, including the Indianapolis metropolitan area. The flooding has caused substantial damage to commercial, industrial, and residential properties throughout the affected regions.
• Indiana law provides specific statutory mechanisms for obtaining property tax relief through reassessment of damaged properties.
• Given the filing deadlines, property owners should act promptly to document damage, obtain petition forms, and initiate the reassessment process.

Table of Contents

1. General Disaster Statute

2. Flood-Specific Statute

3. Comparison of the Two Statutes

4. Conclusion

5. For More Information

Background: The August 2026 Indiana Floods & Two Statutes for Relief

Beginning August 11, 2026, severe weather struck across Indiana, with some areas receiving more than 11 inches of rainfall over three days. The White River crested at record levels in Anderson and Noblesville, surpassing a record that had stood since 1913, while forecasters said Indianapolis was facing conditions that could rank among the top 100-year flood events on record. The storms caused extensive damage across northwest and central Indiana.

The emergency response escalated quickly. On August 13, a statewide disaster emergency was declared, the Indiana National Guard was mobilized, and state agencies were instructed to deploy personnel, equipment, and other resources to affected communities. Indianapolis declared a local emergency, and some residents were ordered to evacuate as the White River rose.

Two Indiana statutes authorize reassessment of flood-damaged and disaster-damaged property: the General Disaster Statute, Indiana Code § 6-1.1-4-11 (addressing property destroyed by disasters generally) and the Flood-Specific Statute, Indiana Code § 6-1.1-4-11.5 (addressing permanently flooded property specifically). Both statutes provide affected property owners with a path to reduced assessed values — and corresponding tax relief — but they differ materially in scope, timing, and procedural requirements. Understanding these differences is essential to maximizing available relief.

General Disaster Statute

Overview and Scope

Indiana Code § 6-1.1-4-11 provides a broad reassessment mechanism applicable when property in a township has been physically destroyed, in whole or in part, as a result of a disaster. While the statute does not limit the types of disasters covered, it encompasses events such as flooding, fires, tornadoes, earthquakes, and other catastrophic events.

Key Features

• Broad Property Coverage: The General Disaster Statute applies to both real property and business personal property (tangible assets such as equipment, machinery, computers, furniture, and fixtures).
• Petition-Initiated Process: Relief is triggered when a person petitions the county assessor. Upon receipt of the petition, the county assessor shall: (1) cause a survey of the area(s) where property was destroyed and (2) order a reassessment of the destroyed property.
• Retroactive Effective Date: The reassessed value and corresponding adjustment of tax due, past due, or already paid is effective as of the date the disaster occurred. While Indiana values property for assessment purposes based on its physical status and use as of January 1 each year (for taxes due and payable in two installments the next year), the General Disaster Statute effectively permits the assessor to adjust the property's value downward based on its new physical status and lost utility as of the date of the disaster (and, correspondingly, lowering the taxes due based on the lower value).
• Assessor Discretion on Timing: The county assessor specifies in the reassessment order both: (a) the time within which the reassessment must be completed and (b) the date on which the reassessment becomes effective.
• Township-Level Applicability: The statute requires that "a substantial amount of real and personal property in a township" has been physically destroyed. This is a threshold condition that must be met before the reassessment process can be initiated.

Filing Deadline

The petition, reassessment order, and tax adjustment order may not be made after December 31 of the year in which the taxes that would first be affected by the reassessment are payable. For the August 2026 flooding, this means the deadline to act is December 31, 2027 — because next year's property taxes, due in two installments on May 10 and Nov. 10, 2027, are the first taxes "which would be affected" by the assessor's reassessment as of this month. Notwithstanding the apparent December 31, 2027, deadline to petition, the petition form recommends filing within 12 months of the disaster, which will give the assessor time to survey the damage and to complete a reassessment.

Note: For annually assessed mobile/manufactured homes, the petition must be filed no later than December 31, 2026, because the current year’s due and payable taxes are those first affected by the reassessment.

Petition Form

Property owners seeking relief under Indiana Code § 6-1.1-4-11 must file Form 137R (State Form 17592), titled "Petition for Survey and Reassessment: Real and Personal Property Partially or Totally Destroyed by Disaster." The form is filed with the county assessor and requires information including the date and kind of disaster, and parcel numbers.

Flood-Specific Statute

Overview and Scope

Indiana Code § 6-1.1-4-11.5 provides a reassessment mechanism specifically tailored to permanently flooded real property. This statute applies when one or more parcels of real property in a county: (1) are permanently flooded or have access over land permanently prevented by flooding, and (2) are not being used for agricultural purposes.

Key Features

• Real Property Only: The Flood-Specific Statute applies only to real property (land and improvements). It does not cover business personal property.
• Permanent Flooding Required: The statute requires that the property be "permanently flooded" or that access over land is "permanently prevented by flooding." This permanence requirement is a significant threshold, which could prevent relief under this particular provision depending on the anticipated period of flooding.
• No Agricultural Property: Property being used for agricultural purposes is excluded from this statute's coverage.
• Owner-Initiated: The property owner may petition the county assessor for reassessment. Upon receipt, the assessor shall cause a survey and, if the parcels meet the statutory description, order reassessment.
• Retroactive Effective Date: A reassessment conducted under the Flood-Specific Statute applies to the current and prior year's assessment dates (for taxes due and payable this year and next). However, if flooding occurs after May 10 and before November 11 of the current year — as is the case with the August 2026 flooding — only the second installment will be reduced based on the lower assessed value.
• Continuing Effect: A reassessment under this section continues to apply for subsequent assessment dates until the assessor determines circumstances have changed sufficiently and reassesses the property.
• Refund and New Tax Bill Provisions: If the property owner has already paid taxes in the current year based on the higher pre-reassessment value, the owner is entitled to a refund based on the reduced value. The owner is not required to apply for the refund — the county auditor shall issue a warrant payable from the county general fund. If taxes have not yet been paid based on the lower reassessed value, the county treasurer issues new tax statements reflecting the reassessment.

Timing Rules Applicable to August 2026 Flooding

Because the August 2026 flooding occurred after May 10 and before November 11 of the current year, the following timing rules under the Flood-Specific Statute apply (assuming the petition is filed not later than December 31, 2026):

• The reassessment takes effect for: (i) the assessment date in the current year (2026) and (ii) the assessment date in the calendar year immediately preceding the current year (2025).
• Important limitation: Only the second installment of property taxes (or one-half of the total tax liability) first due and payable in the current year (2026) is based on the reassessment.
• Property taxes first due and payable in the succeeding year (2027) will be fully based on the reassessment.

Filing Deadline

The petition must be filed no later than December 31, 2026 (December 31 of the year the flooding occurred).

Petition Form

Property owners seeking relief under Indiana Code 6-1.1-4-11.5 must file Form 137PF (State Form 53950), titled "Petition for Survey and Reassessment: Real Property That Is Permanently Flooded or Access Is Permanently Prevented by Flooding." The form requires the date flooding occurred, the type of damage (permanent flooding or access permanently prevented), parcel information, and other property information.

Comparison of the Two Statutes

The following table summarizes the key distinctions between the General Disaster and Flood-Specific Statutes. 

Whether to file the Form 137R or 137PF will depend on the specific impact of the flooding on a taxpayer’s property.

The Department of Local Government Finance (DLGF), the state agency responsible for promulgating Indiana’s property tax assessment rules and providing guidance for the administration of property tax, has noted the following regarding the reassessment of damaged property:

• Physical inspection of the property is required and is “the only way to determine the true amount of damage.” If repairs have been made before the physical inspection, “other evidence must be considered as well.”
• Evidence such as photos, videos, repair bills, insurance claims, news articles, and appraisals should be reviewed.
• Documentation from local, state, and federal agencies may be helpful.

Reassessment is not guaranteed or, if applied, may not be uniform across geographic areas and property types. According to the DLGF, “Each case stands on its own,” but if a substantial amount of property has been destroyed and there is damage severe enough to cause a loss in value to the property, a reassessment should be done. If a reassessment is ordered, a Notice of Assessment stating the revised assessed value should be issued. If the taxpayer disagrees with the assessor’s reassessment, an appeal can be filed.

Conclusion

Indiana's statutory framework provides meaningful property tax relief for property owners affected by the August 2026 flooding. Property owners have the right to petition for reassessment of damaged properties and corresponding reductions in tax liability. Given the filing deadlines, property owners should act promptly to document damage, obtain petition forms, and initiate the reassessment process. 

For More Information

The attorneys in the Faegre Drinker Property Tax Team have extensive experience representing Indiana property owners in assessment matters, including disaster-related reassessments and tax appeals.

If you have questions, you may contact the authors or other members of the property tax team.