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Commercial and industrial
properties in several Indiana counties face higher tax values.
As the government continues to search for a solution to
Indiana’s tax problems, Gov. Mitch Daniels commissioned a full
reassessment for four counties: Marion, Gibson, Posey and
Delaware. More reassessments are likely to follow.
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WHY REASSESS?
The reassessments were ordered based on evidence that
commercial and industrial properties were undervalued in these
four counties.
Soaring
residential property taxes sparked demonstrations by angry
homeowners in front of the governor's residence. Residential
property taxes are expected to increase statewide by 24% on
average this year. In Marion County (Indianapolis), residential
tax bills have gone up an average 34%.
Local
assessors will revalue residential properties and an outside
vendor will be hired to handle the commercial and industrial
property revaluations. The reassessments will not require
full-scale activities such as physical inspections of every
property.
The
Department of Local Government Finance (DLGF) will review the
reassessment work. If any errors in the accuracy or equity of
assessment are discovered, the DLGF may reject the proposed
assessments and require the county assessor to take corrective
action.
THE COST OF CATCHING UP
Observers are concerned that the current governmental
fervor with "catching up" commercial/industrial property
assessments could result in excessive values being placed on
some properties.
It will be
critical for all taxpayers to work closely with their consultant
to effectively analyze and challenge any proposed values not
supported by property characteristics or market conditions.
MORE REASSESSMENTS MAY BE
ORDERED
Gov. Daniels said 71 counties had not given the state
sufficient data to determine whether their assessments were
adequately conducted. As a result, reassessments will probably
be ordered in more counties. Until then, the Commission on State
Tax and Finance Policy is holding a series of public hearings to
get citizen input on ways to address the situation.
In addition,
Gov. Daniels appointed former Gov. Joe Kernan and State Supreme
Court Justice Randall Shepherd to head a blue-ribbon commission
to find long-term solutions to Indiana’s property tax problems.
This commission is considering a number of questions:
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Can local
government offices be eliminated to improve cost
efficiencies?
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What
local units of government can be consolidated to achieve
savings?
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Are there
services that can be reduced or eliminated to save tax
dollars?
The
commission hopes to release its report by the end of the year.
Any recommendations would have to be approved by the General
Assembly. |
PROBLEMS IN
MARION COUNTY
(INDIANAPOLIS)
The DLGF discovered serious
assessment
problems in
Marion County. Between 2005
and 2006, there were no
value increases for:
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72% of commercial
and industrial
parcels
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78% of vacant
industrial land
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90% of vacant
commercial land
The research also found that
values for
16,000 of the
22,100 commercial and
industrial properties in
Marion
County did not change at all
during a six-year period.
MARION
TAX BILLS
FROZEN
Most counties under the
reappraisal order issued tax
bills late
last year or early
this year and the bills have
already been
paid. However,
in Marion County, 2007 tax
bills will remain at
2006
levels. After the reassessment
is completed, updated bills
will
be issued.
Reconciliation bills for Marion
County must
be mailed no
later than April 14, 2008.
Payments for the
reconciliation bills will be due
on April 30, 2008. |
