Loading ...HERE’S YOUR FIRST WARNING
Watch out for this one folks, home prices are dropping across the country. Indianapolis won’t be immune to this syndrome either. And remember, the property tax system here is based on fair market value. As home values drop, there is less assessed value. If there is less assessed value that should translate into less money for local governments, but officials can still raise the rates to make up for the loss in assessments. So although your home is worth less, you can still see yourself paying the same amount. Of course all this falls against a backdrop of tax caps. But you still have to consolidate the local governments to avoid increases in your property taxes. Don’t let the reform stop.
March 25th, 2008 at 11:23 am
I have enlightened appreciation for incumbancy, special interests, and maybe “greed”. Despite what one thinks of the issues individually, lobbyist reform, illegal hiring/immigration, township government reduction and property tax caps had a solid majority of Indiana favoring reform on each. We got a diluted two out of four. I don’t wish for further cumulative bad events like the summer property tax bills and city-county tax hike, but it will take more drama for sufficent outrage. “Throw all the rascals out” may net worse rascals in some cases, but it takes a lot of mana to beat these guys (& Senator Lawson - pardon me).
March 25th, 2008 at 11:30 am
Well then lets “mana” up and not stop revolting. There is more work to be done. We must continue to show that we mean business and the way to do that is with the up-coming elections. I’m sure most state and local politicians think they are safe now that they passed some sort of property tax reform but we must make our voices heard.
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REMEMBER NOVEMBER
March 25th, 2008 at 12:08 pm
Pardon again, and Senator Simpson too. Wouldn’t want her outrage regarding lobbyist reform to go unnoticed.
March 25th, 2008 at 1:14 pm
Don’t forget that you are taxed in arrears. (e.g. what your house was worth last year!) They will find the year that they want to tax you for, and do it. Sort of like the 2003 rates being based on 1999 valuations…”Figures don’t lie but liars CAN figure” a way around the thing.
March 25th, 2008 at 1:20 pm
I am with John G on this one. Nothing short of total change will begin to move us in the right direction (that being defined by representives who truly represent their constituents, not special interests)
March 25th, 2008 at 1:26 pm
If people struggling to pay excessive tax levies is an indicator, warnings have sounded for decades. See Dr. Styring’s recitation of the history of property tax in Indiana, going back to the depression era, 1930’s, at Stopindiana.com & click the button under the home page header entitled “Plans for repeal.”
The assessment system is anti free market; because it’s subjective by design and not reality or transaction based. A requirement that taxpayers take on yet another unnecessary job in the name of vigilance is crazy, a waste of their irreplaceable time, and redundant by way of a failed premise that the assessment system is legitimate or market value.
As tax freedom day, does a generational fade, from June or so, into August or so, there will be less, not more time; for vigilance, exercise, recreation- living as free people so choose. We are becoming less of a free, and more a fee people.
Celebrate what progress? The history of what we do (or fail to do) will be mostly written by people we don’t know and some yet born, who will be hopefully free to see and report things as they were. The current trend however (tax freedom day, etc.) is going in the wrong direction.
March 25th, 2008 at 2:43 pm
When is the next actual reassessment scheduled? Since we just got reassessed this year, there will not be a new assessment for 2 years (? — 4?). By the time of the next assessment, home prices should have come back up.
March 25th, 2008 at 4:25 pm
Lower AV does not translate into lower property taxes, since the market will devalue similar properties. Talk to one of the gov’s fiscal experts (or one of the fiscal legislative staffers) about this. It’s tricky.
March 25th, 2008 at 6:55 pm
Yet another oxymoron with regard to this governor, uttered by Anne:
“one of the gov’s fiscal experts.”
Uh, Anne…it’s almost a proven fact: there aren’t any.
March 26th, 2008 at 7:14 am
Abdul raises a good point. Generally a forclosed home devalues surrounding homes up to 15%. I’m aware of reports of lower home values but no one seriously expects a drop in assessed value, because the assessors have exempted forclosed homes from their formula. The bill 1001 does not cover poor local government regulations and standards because those are written seperately, and that’s what also needs reformed badly. 1001 was a compromise for political expediency to jumpstart legislators’ campaigns. No one should expect local reforms to be fixed by the state or for a fair AV in any near future. The DLGF is a source and symptom of the problem because it certifies faulty county results. There is no major local reform afoot.
March 26th, 2008 at 12:26 pm
There are at least three forclosed/vacant homes in my older, middle-class neighbourhood but, trending keeps the rates up. It seems that the “government” has found a way to accelerate the intrest rate, as the balance of their account gets smaller.
There is only one cretainty. There will be a smaller tax base as distressed, foreclosed and abandoned properties increase in number. The survivors, will be hit with inflated assessment values and, can be assured that the money WILL be gotten from somewhere–from you!
March 27th, 2008 at 12:19 pm
Not in my case. I have a home that was purchased for $160,000 (in 2006). 2 years later (this year, Feb to be exact) I refinanced. The home was valued at $185,000 based on fair market value assessment by a state licensed home appraiser. How? I have not a clue. I have made no updates or upgrades (other than carpeting) to justify a $25,000 increase in the value of my home in 2 years. Homes in Indianapolis have always been undervalued due to the large number of foreclosures, bankruptcies and very large surplus of housing and apartment. In fact Abbie, do all of us a favor. Find the total number of all available housing units in Marion County (apt, condo’s, managed care facilities, single and multiple family homes). You find more (many, many more) places to live than adult residents living in Marion County. Prove me wrong because I have seen the numbers.