Reassessment

As of May 10, 2001, the State Board of Tax Commissioners adopted a set of regulations to use in the court-ordered reassessment. The adopted regulations require a more "market-based" system for the upcoming reassessment. The change to a "market-based" system may cause property tax shifts from commercial and industrial property taxpayers to residential and agricultural property taxpayers.

What Is Reassessment?
Reassessment is the reevaluation of all properties in a given area for the purpose of establishing a new tax base. Tax bills are the product of the assessed valuation of the property and the cost of municipal, county and school district services. Remember, reassessment is not tax reform. Taxes continue to support the municipality in which you live, your school district and the County. Reassessment does not change this.
The Legislature promulgates laws that affect how property is taxed. These laws are then authorized by the State Board of Tax Commissioners who are responsible for drafting and writing new appraisal manuals, rules and regulations, bulletins, directives, and forms for the assessment of real property. In addition, the courts, particularly the Tax Court and the Supreme Court issue rulings that may clarify or change the scope and direction of reassessment activities.

Why Do We Have Reassessment?
Periodic reassessments are required by law and are to insure that each property is valued fairly. The purpose of property tax reassessment is to realign the values of real property that are determined with values of other kinds of property that are assessed annually, such as personal property, utilities, and mobile homes. Between reassessments, a gap develops that creates inequitable tax burdens. The longer the time period between reassessments, the greater the gap becomes. Following the 1989 reassessment, the Indiana General Assembly passed legislation to shorten real estate reassessment periods to six years (1995), then to four years (1999). This was done to reduce the inequity between taxpayer groups and lesson the impact after reassessment. However, the current 4-year cycle has been delayed by court order.

What Should I Expect From Reassessment?
A Reassessment will result in a new value being established for your property. This new value will replace the 1995 value currently on your property and will be the basis used for taxing property. Please remember that an increase in property value does not automatically mean an increase in your property taxes.

Why Is This Reassessment So Different?
First, replacement values will be adjusted on a county-by-county basis with "Location Cost Multipliers". Second, a "Neighborhood Index" multiplier will be applied to adjust for local influences in value.
The upcoming reassessment will focus on the "results" of reassessment. Specifically, it will focus on how final assessments compare with "market values." Values will be compared with sales information using assessment ratio and equalization studies. In order to achieve and overall acceptable level of "market value", equalization factors may be applied either by local Assessors, the County Assessor, or by the State Board of Tax Commissioners. Equalization factors may be applied to all assessments in each neighborhood.

When Will My Bill Reflect This Property Tax Reassessment?
This reassessment is to be completed for the March 1, 2002 lien date, payable in May 2003.

Can I Determine If My Taxes Will Increase With Reassessment?
Not necessarily. It is paramount that we arrive at fair values during the reassessment, but no one really knows precisely how this reassessment will impact our property taxes. Reassessment will change the assessed value of the property but reassessment should not have any bearing on the budgetary needs of the taxing jurisdictions. So, in theory, the tax rate will decrease to compensate for the increase in assessed value; a property that receives an "average" increase should only see a nominal change in taxes. Typically following a reassessment, 1/3 of the parcels decrease, 1/3 increase and 1/3 stay relatively the same.

How Is Reassessment Conducted?
Over the next year an experienced data collector will visit each property to gather information. Each of our reassessment data collectors is registered with the County Sheriff and carries an identification card for verification.
It is our goal to conduct an exterior inspection of each home and business. We will attempt to conduct an interior inspection. This helps insure that an accurate assessment is placed on your home and property. However, we understand that in many cases not everyone will be at home. In these cases, the reassessment data collectors will estimate the interior items and leave the homeowner a door hanger. You may call and schedule an interior inspection. We encourage you to request an appointment if your home has 2 story open areas that need interior measurements.
After checking to see if anyone is at home, our data collectors will conduct the following for each property:
Take a picture of the outside of your property,
Identify any physical changes and improvements to the property, and
Record any necessary measurements.

How Can I Make Sure My Assessment Is Correct?
First of all, talk to your Township Assessor! They work for you and want to do the best possible job. Offer them information about the value of your property if you disagree with your assessment. Please don't ignore notices, letters, and visits to your property by assessors and their employees. Feel free to compare your proposed assessment with the proposed assessment of properties similar to yours.

What About Business, Commercial, Industrial or Public Properties?
Reassessment works much the same way as for residential properties. Trained commercial and industrial data collectors gather information such as physical characteristics, replacement costs, land values and circumstances regarding any recent property purchases. Income and expenses information may be requested because it is related to what investors are willing to pay for property.