Property Tax Discussion Continues

Property taxes continue to dominate the news. During the past several weeks  multiple announcements have been made by state and local officials. Governor Daniels ordered that all property in Marion County be immediately reassessed due to the fact that businesses were either not assessed or assessed inaccurately. Local officials have been charged to reassess all residential property while the state will take over the assessment of all business property. The process is expected to take approximately six to eight months. After the reassessment and certification by the state, property owners will be sent a new 2007 tax bill. In the meantime, property owners have been asked to pay the same amount as their 2006 tax bill with a due date of Aug. 10. While it is unlikely that the entire state will be reassessed, several counties are currently being reviewed and it is expected that there may be additional counties asked to reassess.  Governor Daniels announced the formation of a new commission to look at reforming and restructuring local civil and school governments in an effort to seek long term solutions to property taxes. The new commission will be co-chaired by Indiana Supreme Court Justice Randall T. Shepard and former Governor Joe Kernan. The new commission moves closer to addressing issues supported by IAR and MIBOR for several years regarding government offices that  could be eliminated to achieve efficiencies and cost-savings and how local governments might restructure or consolidate to reduce overhead and other expenses. The Commission on State Tax and Financing Policy holds its first of multiple meetings today to seek input on the property tax situation and search for possible solutions. IAR, MIBOR, and several REALTORS® plan to participate in the hearings. The commission is chaired by Senator Luke Kenley from Noblesville. Additional dates and locations will be announced soon. Governor Daniels announced that the deadline for counties to consider adopting available revenue tools to help reduce local property taxes would be extended from Aug. 1 to Oct. 1. The Indiana General Assembly recently passed the new law giving counties the authority to adopt local option income taxes to replace a portion of property taxes. Montgomery County was the first county to pursue this option and several other counties are considering the new tool. Taxpayers, however, have been cautious of the concept. The rebate supposedly coming to taxpayers is also a topic of much discussion. While details regarding amounts are still unclear, many are calling for the rebate to be converted into a credit that can be applied more immediately to present taxes. As you already know, things are changing by the day and we anticipate many more announcements. Stay tuned for more updates and don’t hesitate to contact us with questions.

Reassessment Order 2007-Marion County

Property Tax Information

Property taxes in Indiana are administered at the local level with oversight by the Indiana Department of Local Government Finance. More than 99 percent of the revenue generated by property taxes remains in the community in which they are collected.

(Click to learn where property tax dollars are spent in Indiana)

Property taxes represent a property owner’s portion of the local government’s spending in a given year. Property taxes in Indiana are paid in arrears, meaning the taxes paid in the current year represent the taxes owed for the previous year. Taxes in Indiana are due annually in two installments—May 10 and Nov. 10.

A property’s assessed value is the basis for property taxes. Annually local assessing officials assess the value of real property on March 1 based on market value in use of the property. County officials add all of the assessed values of property in a county together and subtract the applicable deductions to determine the county’s net assessed value. The Indiana Department of Local Government Finance sets the total amount of money government units in a county can spend in a year based on projected revenues for the county. This total allowed expenditure is divided by the net assessed value to determine the tax rate. Most simply, this can be explained as:

TAX RATE = Estimate of funds to be raised/net assessed value

The tax rate is multiplied by the assessed value after all deductions are subtracted from each property. For a complete listing of deductions and eligibility requirements, click HERE. The county auditor then applies the state homestead credit and property tax replacement credit to arrive at the amount the property owner will pay in taxes to the county.

Property Taxes Rebates and Appeals:
Have questions about your recent property tax bill? Read below to find out more about rebates, the appeal process and public events.

Rebates
To provide some temporary relief from property tax increases, the Indiana General Assembly authorized approximately $300 million in tax rebates. The amount of individual rebates is not yet known. Checks are expected to be mailed out by counties in January.

Homeowners with mortgages paid out of escrow accounts will receive rebate checks directly from auditors. Any checks that are returned or are not cashed after two years will be filed as "unclaimed property" by the Indiana attorney general's office.

The legislature also authorized an additional $250 million in homestead credits to help alleviate property tax payments for next year.

Appeals
If you believe that your property tax assessment is incorrect, you can appeal. Indiana law provides a couple of ways for taxpayers to contest the assessed value of their property. Both begin at the local level and can be appealed to the state only after a local review. Below is the process for filing:

o   Write a letter or file a Form 130 within 45 days of receiving your bill to your township assessor requesting a review of the assessment. The request should detail the pertinent facts of why the assessed value is being disputed. It should also include the parcel number, property address, property owner name and contact information. Only a taxpayer can request a review of the current year’s assessed valuation. A copy should also be filed with the county assessor.

o   The Property Tax Assessment Board of Appeals (PTABOA) will review the request and send its determination.

o   To appeal the Board's decision and take your request to the Indiana Board of Tax Review, file a Form 131 with the county assessor within 30 days of receiving the determination.

o   If the determination is still not in your favor, you have 45 days to file with the Indiana Tax Court. File a copy of your appeal with the attorney general's office and your county assessor as well.

Click here to access Form 130.

Who is Administrating Property Tax?

Property Tax is administered by the Department of Local Government Finance. The Department of Revenue does not handle property taxes. Please direct all questions and form requests to the above agency.

Property taxes in Indiana are collected by the local county treasurers, based on assessments that are provided by the township and county assessors. These assessments are based on guidelines adopted by the Indiana Department of Local Government Finance.

If you have questions about assessment rules or the guidelines dealing with personal property, and wish to speak to someone with Local Government Finance, please contact the following individual:

Administrative Assistant in Indianapolis at 317-232-3773

If you have questions about assessment rules or the guidelines dealing with real estate, and wish to speak to someone with Local Government Finance, please contact the following:

Jim Hemming, in Monticello, at 574-583-1524
Terry Knee, in Urbana, at 260-774-3648

Questions may also be directed to the e-mail address: PropertyTaxInfo@dlgf.in.gov or to the Administrative Assistant at 317-232-3777.

Copies of the guidelines for both real estate and personal property used in the assessment process may be obtained by contacting the Department of Local Government Finance at 317-232-3777. Forms used in the filing of personal property assessments may be found under the "Forms" tab on the Department’s web site at www.in.gov/dlgf/

ABOUT PROPERTY TAX IN MARION COUNTY

The Spring tax bill for Marion County has been mailed, and is due July 27th. 

The 2007 Fall Due date should be Tuesday, November 13th.

The Marion County Treasurer has the responsibility of collecting Real Estate, Personal Property, Mobile Home and Business Personal Property Taxes in Marion County, Indiana two times each year.

All payments must be received by the Marion County Treasurer no later than due dates, if not a penalty will be added to the unpaid portion of the amount due for each installment.  The penalty will be in the amount of 5% of the unpaid tax IF the installment is completely paid on or before thirty (30) days after the due date AND you are not liable for delinquent property taxes first due and payable in a previous year for the same parcel.  Otherwise, the penalty will be in the amount of 10% of the unpaid tax. 

To see a list of your payment options Click Here.

Additional Information regarding your taxes:

All exemption forms must be filed with the Marion County Auditor. You may visit the Auditor's Web site at www.indygov.org/auditor, or call them at (317) 327-4646 to inquire about other exemptions for which you may qualify; as well as filing dates.

All name and/or address changes must be filed with the township assessor of the township in which the property is located. (See the list below for a list of all Marion County Township Assessors.

County & Township Assessors

County Assessor

The County Assessor serves as Secretary of the Property Tax Assessment Board of Appeals (PTABOA). The Board conducts real estate and personal property tax appeals. The Assessor also is responsible for calculating inheritance tax and processing applications for property tax exemptions. In addition, the County Assessor is one of three County Commissioners, along with the County Auditor and County Treasurer.

• Marion County Assessor

County Township Assessors

The Township Assessor is responsible for identifying, listing, and calculating value on all taxable real and personal property in their township. For property tax purposes, 'real property' refers to land and structures, while 'personal property' refers to furniture and equipment owned or used by a business. Individual personal property refers to boats, trailers, and other recreational vehicles.

Washington Township Property Tax Information

There are two types of real estate taxes: general real estate taxes (ad valorem) and special assessments or improvement taxes. (Ad Valorem is Latin meaning according to value.) The general real estate tax for Washington Township is made up of the taxes levied on real estate by various government agencies and municipalities, including:

• Washington Township Schools
• Public Assistance
  (State Welfare)
  (County Health & Hospital)
• City of Indianapolis
• County
• Metro Emergency Communication
• Township Fire & Administration
• Other – State, Libraries

Special Assessment

Taxes levied on real estate to fund public improvements to the property. Property owners in the area of the improvements are required to pay for them because their properties benefit directly form the improvements.

(Examples are: installing paved streets, curb, sewers and street lights)

Exempt from general real estate tax

State laws exempt certain real estate from taxation. Such property must be used for tax-exempt purposes, as defined in the statutes. The most common are

• Cities
• Schools, Parks and Playgrounds
• State and Federal Governments
• Churches and Charitable Organizations
• Hospitals
• Educational Institutions

Assessment

Real estate is valued for tax purposes by county or township assessors. This process is called assessment. Land values are assessed separately from buildings or other improvements. Different valuation methods may be used for different types of property.

For the year 2002, payable 2003, the State of Indiana was ordered by the Tax Court to change their method of assessing residential property to market value, instead of just reproduction cost. To the reproduction cost for each property was added (or subtracted) an amount indicated by its neighborhood factor. The neighborhood factor is determined by comparing the average improvement (structure) portion of the sales to the average reproduction cost for the particular area. The land and improvements are added together to get the total assessment.

Some property owners may feel that that an error was made in determining the assessed value of their property. Those owners are encouraged to meet with us. After the conference, if they still aren’t satisfied with their assessment, their Appeal may be heard by the Property Tax Assessment Board of Appeals (PTABOA) of Marion County. Their Appeals may be taken further to the Indiana Board of Tax Review and then to the State Tax Court. Most Appeals, however, are settled at the initial conference.

Owners may notify the Township Assessor in writing if they want to Appeal, either before or after the initial conference. The letter becomes a formal document that establishes the date of the Appeal.

Equalization

Key to items listed on your property record card

Indiana law provides a couple of ways for taxpayers to contest the assessed value of their property. Both begin at the local level and can be appealed to the state only after being reviewed locally.

One way begins with written notification to the township assessing official requesting an informal conference to discuss the assessment. The request should detail the pertinent facts of why the assessed value is being disputed. It should also include the parcel number, property address, property owner name and contact information. A taxpayer may only request a review of the current year’s assessed valuation. Following the informal conference with the local assessing official, the township assessor will make a recommendation either denying or approving the appeal. If denied, the township will forward the appeal to the county Property Tax Assessment Board of Appeals (PTABOA) for review. If the PTABOA denies the appeal, instructions will be provided on appealing the decision to the Indiana Board of Tax Review. A link to the Board can be found in the adjacent Quick Link box.

The other appeal process begins with the submission of a Petition for Correction of Error (Form 133) to the County Auditor. This form may be used to appeal objective issues such as:

1. The taxes are illegal as a matter of law.
2. There is a math error on the assessment.
3. Through error or omission by any state of county officer, the taxpayer was not given credit for an exemption or deduction as permitted by law.

Claims may be made for up to three years of assessments with the submission of the Form 133. However, taxpayers requesting refunds must also file a Claim for Refund form (Form 17T).

In order to appeal a current assessment and have a change in the assessment effective for the most recent assessment date, the taxpayer must request a conference with the local assessing official not later than forty-five days after notice of a change in the assessment is given to the taxpayer or before May 10, whichever is later. A Form 133 must have the approval of at least two of the following officials: the county auditor, county assessor or the township assessor. If the petition is denied, the county auditor shall refer the matter to the PTABOA for determination. The PTABOA shall provide a copy of their determination to the petitioner and the auditor.

A petitioner may appeal the PTABOA decision to the Indiana Board of Tax Review. The appeal must be made within thirty days after the mailing date of the PTABOA determination, and is filed with the county auditor.

After being heard by the Board of Tax Review, taxpayers may also seek review by the Indiana Tax Court. Details on how to appeal to the Tax Court following review by the Board can be obtained by contacting the Indiana Board of Tax Review.

FORM 130

http://www.in.gov/legislative/house_democrats/docs/Form130.pdf

Hamilton County Treasurer's Office: 

Questions about Tax Bills and Payments

Treasurer's Office

Phone: 317-776-9620

Address: Hamilton County Historic Courthouse 33 N. 9th Street, Suite 112 Noblesville, IN 46060

Go to Location Map

Here you can find answers to your questions regarding Property Tax in Hamilton County.

Current Due Dates       Tax Statements and Posted Payments are available online. 1. What are your office hours? 2. When are property tax bills mailed? 3. When are property tax payments due? 4. What do I do if I didn't receive my property tax bill? 5. Why did my tax bill get mailed to someone other than my mortgage company? 6. How do I verify that you have received payment? 7. How do I know if my mortgage company is going to pay my taxes? 8. Why didn't I receive my maintenance drain bill this year? 9. Why did I receive a reconstruction drain bill? 10. Can I pay my taxes anywhere else besides the Treasurer's Office? 11. How do I know if I have all my property tax deductions? 12. How do I change my mailing address? 13. My property was sold at the County's tax sale. How do I get it back? 14. Can I make partial payments towards my property tax bill? 15. Why is it so difficult to reach the Treasurer's Office by phone? 1. What are your office hours? The Treasurer’s office is open 8am – 4:30pm, Monday through Friday. During peak periods (typically May and November), the office hours are extended to accommodate taxpayers. County offices are closed to observe legal holidays. Click here for holidays and click here for extended hours. 2. When are property tax bills mailed? According to IC 6-1.1-22-8(b)(2), “…The county treasurer may mail or transmit the statement … at least fifteen (15) days before the date on which the first or only installment is due…”.  Typically, Hamilton County Tax Statements are mailed in late April, and Online Tax Statements are available shortly after. If it is necessary for the County to modify these Dates, it will be posted - click here for current information.     3. When are property tax payments due? According to IC 6-1.1-22-9(a), property taxes are due “…in two (2) equal installments on May 10 and November 10…”.  If it is necessary for the County to extend Payment Due Dates, it will be posted - click here for current information. 4. What do I do if I didn’t receive my property tax bill? Use the Online Tax Statements to view and print a copy of your bill. You may use this copy for payment. If you have a mortgage escrow, it is possible that your property tax bill was mailed to your lender for payment. If so, the Online Tax Statements will include a “Mailed to” entry directly above your name and address. 5. Why did my tax bill get mailed to someone other than my mortgage company? Many mortgage companies use a third party clearinghouse to request your property tax bill and process your property tax payment from your escrow. Please contact your mortgage company for additional information. 6. How do I verify that you have received payment? Posted payments are listed in the Online Tax Statements and Posted Payments. Pull up your statement and click on Payment Details. 7. How do I know if my mortgage company is going to pay my taxes? The only sure way to know is to contact your mortgage company. Keep in mind there will be a lag between the time the money is deducted from your escrow and the payment is finally sent to the Treasurer to post. 8. Why didn’t I receive my maintenance drain bill this year? The Hamilton County Drainage Board asked that maintenance drain assessments be combined with the real estate tax bill for 2006. It is also possible the Drainage Board stopped collections this year for your drain. For specific details regarding a stopped drain or the actual assessment, click here. 9. Why did I receive a reconstruction drain bill? The County Surveyor is responsible for assessing regulated drains. For questions on reconstruction drain billing, please click here. 10. Can I pay my taxes anywhere else besides the Treasurer’s office? Taxes can be paid at most Hamilton County banks as long as the payment amount is what appears on the bottom of the statements. Check with your bank to find out if they charge any additional fees to accept these payments. Taxpayers also have the ability to pay either online or by phone. Go to Tax Payment Methods for details. 11. How do I know if I have all my property tax deductions? The Online Tax Statements show the deductions that have been applied to your property, under the section called “DEDUCTIONS BREAKDOWN”. Go to Property Tax Deductions and Credits for more information and how to qualify. 12. How do I change my mailing address? The Transfer & Mapping department of the Auditor’s office is responsible for maintaining both mailing addresses and property addresses. Click here to send them a Change of Address form. 13. My property was sold at the county’s tax sale. How do I get it back? The Auditor’s office is responsible for calculating the redemption amount. Please call 317.776.9602 for assistance. 14. Can I make partial payments towards my property tax bill? The Treasurer will accept partial payments. Please keep in mind that acceptance of partial payments does not change the due dates. The spring and fall tax bill amounts must be paid in full by the due dates (typically in May and November). Otherwise, ten percent (10%) penalties will be assessed on any unpaid amount. 15. Why is it so difficult to reach the Treasurer’s office by phone? The Treasurer’s Office has a high call volume all year but the call volume is at its’ peak from April 25 – May 15 and October 25 – November 15. We appreciate your patience. If your call is on hold for more than 20 minutes, please try again later or use this web site.

How to improve this situation?

FROM:   Karl F. Berron, CEO,  Indiana Association of REALTORS®

I don’t need to tell you all the tenuous nature of the residential market.  Many counties continue to report declining market activity, and perhaps more distressing, foreclosure rates of an extreme level.  In some counties, over 40% of transactions are foreclosed properties.  Instead, I would like to spend the rest of the letter outlining our goals in order to help prepare you for conversations with your clients and elected officials.

Short term, we have advocated a restructuring of the rebate that is now in place.  Rather than spread those dollars over all taxpayers, it makes more sense to target them to those seeing the largest increases.  We think the State could offset increases in excess of 20-25 percent with the dollars currently set aside for the circuit breaker.  Local government has a role to play in the short term, as well.  The State has given local government the ability to adopt an income tax, a tool that could provide substantial, lasting relief.  Urge your local unit of government to use that tool.

Long term, meaningful and lasting reform MUST happen.  It also must be rational.  One of the most frustrating aspects of our property tax system is its complexity.  Discussions of levies, rates, circuit breakers, assessed value, trending, homestead credits, homestead deductions, gross this and net that can make one’s head spin.  The media is often unable to cover the debate in a meaningful way, and elected officials at all levels use the complexity to avoid blame and confuse the issue.

Here are my thoughts on how to ensure the viability of our markets and ensure economic opportunity for homeowners, investors and businesses alike:

1.   Eliminate township level assessments, move to county assessment

The wild and inequitable inconsistencies in assessments, documented by the Indiana Fiscal Policy Institute study supported by your Association, remain part of the problem and are a contributing factor to the unacceptable increases we are seeing now.  Assessment responsibility should fall on the County Assessor.

2.   Update technology and adopt a uniform data system statewide

The State must enforce 21^st century data and appraisal practices in assessment offices statewide, as well as effectively monitor and evaluate results.  Should the State find the standards and/or results lacking, they should act to correct practices and equalize assessments where necessary.

3.   Modernize the local government structure

Indiana has the third most units of local government in the nation.  We have the third most townships at 1,008, the third most sub-county governments at 1,575 and the fourth most municipalities at 567.  Many of these elected officials effectively answer to no one and spend taxpayers’ money with little or no oversight.  Eliminating them will simplify local government and provide a much clearer picture to taxpayers as to who exactly is spending their property taxes and what they are buying.

4.   Reduce reliance on property tax

This is perhaps the most difficult piece of the reform puzzle.  There are two choices.  Since about 75% of the property tax dollar goes to education and public safety, dramatic cuts would need to be made in those services to achieve substantial savings.  Such dramatic cuts are not generally supported, as they would have an adverse affect on the quality of life and economic development potential of the state.  The second choice is to provide local governments with alternative sources of funding.  This is the more viable long term solution, and IAR will continue to advocate for broad based taxes such as sales and income as a substitution for property taxes.