*** Tax Alert - Midwest ***

Marion County, Indiana Values Skyrocket
- Average Increase More Than 33% !

The state-ordered reassessment in Marion County resulted in dramatically higher values for commercial and industrial property owners. For the county as a whole, values are 33.3% higher and in some townships, the average increase is almost 39%.

With virtually every business property owner facing much higher taxes, there will be a deluge of appeals this year. Those who are prepared up front will get through the process much easier.

Here’s what you need to know to avoid paying more than your fair share.

How Did This Happen?

Gov. Mitch Daniels ordered the reassessment (read Governor’s order) after assessment irregularities were discovered in several Indiana counties. You can read our analysis and report on the reassessment order and irregularities in our Sept. 2007 e-POER Report.

Higher Tax Bills on the Way

Marion County Assessor Greg Bowes warned that, “Since values are a main determinant of taxes paid, the big jump in property values for businesses is almost certain to lead to an increase in their property tax bills.”

2007 reconciliation tax bills must be mailed no later than April 14. Payment for the reconciliation bills will be due on April 30, 2008.

2008 tax bills will follow after tax rates are set in May, with a due date in June 2008.

Changes in the Appeals Process

First, the 2007 tax bill will serve as your notice of value. Marion County assessors have decided that Form 11 valuation notices will not be mailed to property owners.

Second, informal reviews with township assessors are eliminated this year. Instead, property owners must seek a conference with the Marion County Assessor’s office.

Prepare Now

Since this mass re-appraisal was performed in a very short timeframe, mistakes will occur. Therefore, you need your own expert opinion of value prepared when the new assessment tax bills arrive.

Common Problems to Watch Out For

• Objective errors – miscalculations

• Improper categorization of physical characteristics

• Functional & economic obsolescence not uniquely identified

• A lack of market considerations - sales & rent data on comparable properties

If the new valuation ignores or skims over any important details that have a negative impact on your property, this should be addressed in your appeal.

Short Window to Act

There is a very short window of opportunity to challenge an unjust assessment. The appeal deadline is 45 days after the issuance of the new valuation and tax bill. Therefore, you must have done your homework and be ready to proceed immediately.