New calculations for property taxes on Indiana farmland would be delayed for a year under a proposal approved by the state Legislature.

The Indiana House voted unanimously Monday in favor of the delay that the Senate approved last month.

The bill would stop the state from using updated soil quality figures that were projected to lead to an average 25 percent increase in tax payments for farm owners.

Supporters of the delay say that the new calculations could lead to $57 million in property taxes being shifted to farmland.

The bill requires state tax officials and Purdue University agriculture researchers to prepare a review of the soil productivity measurement for the Legislature to consider next year.

The measure now goes to Gov. Mike Pence for his consideration.

Notices of the new assessed values for the 2012 pay 2013 reassessment have already begun to be mailed.  Scott and Jennings Counties were the first to go out, and several have followed quickly behind them.  (See the box to the right for appeal filing deadlines.)

As we suspected the new assessed values are all over the place. Some have increased or stayed the same, but many of the new values are lower than the 2011 values. In some cases as much as 20% lower.  This is most likely due to two things:

1.  The cost tables used by the Assessors to create the values, are lower than they were in the previous reassessment.

2.  Depreciation for a property is updated during a reassessment. 

Beware of the lower assessments.  While on the surface this seems like good news, the lower assessed values may in fact cause a taxpayer to pay more next Spring when the tax bills come out.

How could this be?  It is very likely that tax rates will dramatically increase due to the lower values.  Basically here is how tax rates are calculated : The Budget Needed to Run the Taxing District, divided by The Assessed Values of the Taxing District.  Based on this calculation, if the assessed values are lower, the tax rates will have to increase in order to cover the budget needs.

What about the Tax Caps?  Most taxing districts have not yet hit their Commercial Property tax cap of 3% (More if there is an approved school referendum in the district.)

Here’s a real world example we just encountered:

2011 Assessed Value   $1,631,900

2012 Tax Bill – $31,104 based on a 1.9% tax rate

2012 Assessed Value   $1,310,700 (about a 24% decrease)

2012 pay 2013 Potential Tax Bill at 3% – $39,321

Our advice to all of our clients is to expect the best, but prepare for the worst.  Our recommendation is to set your 2013 budgets at the 3% rate.

One final word on the new values. Just because they are lower, that does not make them accurate.

Whether the value of the property has increased, decreased or stayed the same, remember that there are ONLY 45 day from the date of the notice to file an appeal.   You can’t wait until next year to see what the tax rates are.  Now is the time to act!!

  ]]> http://accuratetaxmgmt.com/2012-reassessment-5/feed/ 2 http://accuratetaxmgmt.com/2012-reassessment/ http://accuratetaxmgmt.com/2012-reassessment/#comments Sun, 06 Nov 2011 18:10:33 +0000 denise http://accuratetaxmgmt.com/?p=126 The Assessors have a state mandate to perform a reassessment for all properties in their district for the 2012 pay 2013 tax year. That process has already begun.

This involves someone in, or representing the Assessor’s office to acutally go out and physically inspect each property for changes, both residential and commercial.

For now this may affect you in a couple of ways:

1. You may see someone measuring and taking pictures of your property.

2. You may receive a survey in the mail requesting that you confirm certain characteristics about your property, or provide income information. Proceed cautiously when completing these forms. They can have a big impact on the future tax bill you may pay. Call us if you are in doubt about what to do.

More on the reassessment in the coming months.

Let’s hope that this remains true during the 2012 reassessment.

It can be accessed by going to http://www.in.gov/dlgf/files/110104-_Wood_Memo-_Supreme_Court_Exemption_Ruling.pdf

1.  If you have refinanced, or have had a deed change you will need to re-file your deductions.

2.  A taxpayer cannot receive the same deduction on multiple properties.

3.  The deductions need to be filed with the County Auditor’s office.  Some Counties offer online filing, and some do not.

A few of the deductions available to homeowners are:

• Homestead Deduction
• Mortgage Deduction
• Over 65 Deduction
• Blind or Disabled Person Deduction
• Totally and Partially Disabled Veteran Deduction
• Solar Energy Deduction
• Wind Power Device
• Hydroelectric Power Device
• Geothermal Device

Of all of the deductions listed above, the Homestead Deduction can have the largest impact on your real estate tax bill. This deduction assists the Assessor’s office in determining which of the tax rates you fall under. For example with the Homestead Deduction you will likely fall into the 1% tax cap, where if you do not have the deduction you may be classified under the 2% tax cap.

Start 2011 off right and make sure you get those deductions filed!

Bottom line if your 2010 assessed value changed either up or down, you need to file an appeal by November 30th. If the value did not change you can file your appeal 45 days AFTER the County Treasurer sends out the tax bill next Spring.

Confused? Call us we’ll be happy to help.

The vacant parcel must have:

1.  A County lien that resulted from a prior tax sale

2.  Be unimproved on the date the parcel is offered for sale.

3.  Be legally eligible for construction of a residence.

4.  On the date the vacant parcel is offered for sale, be contiguous to at least one parcel that has an occupied residential structure, or a structure used in conjunction with an occupied residential structure, and that is eligible for the homestead standard deduction.

In order to purchase a vacant parcel the owner of a contiguous parcel must file a written application with the County.

Benefits of purchasing the contiguous parcel:

1.  At the time of the purchase all delinquent taxes, special assessments, penalties, and interest will be removed from the parcel.

2.  A tax exemption will be granted for that parcel for 5 years, or until the first transfer of title to the parcel occurs after the purchase.

Advantage to the County? They no longer have abandoned vacant parcels to maintain.

Cost of a contiguous parcel – $1.00.