The recent decline in commercial and residential real estate values presents owners an opportunity to appeal their property’s assessed value and possibly reduce their tax liability.  Not only will owners have the ability to appeal their property’s 2008 assessed value later this year or early next year, the delay in many Indiana counties in sending out tax bills continues to provide owners the opportunity to appeal their 2007 assessed values.

 

The most recent tax bill in Marion County was delivered in December 2008. This tax bill was a “provisional” bill since the assessed value used to determine tax liability was based on the 2006 assessment. Because 2007 assessed values have not been finalized (the second installment of the 2007 pay 2008 tax bill, which will include the 2007 assessment, is scheduled to be mailed in June 2009), the deadline to appeal the 2007 assessment will be 45 days from the date the upcoming tax bill is mailed. 

 

Many 2007 assessed values will be higher than the 2006 assessed values despite the significant decline in property values. As a result, many owners will be in a position to argue before the Property Tax Assessment Board of Appeals that the assessed value of their property should have gone down, not up, thereby reducing their tax liability. 

 

When the first installment of 2008 pay 2009 taxes are delivered (likely in the fall of 2009), owners will also be able to appeal the 2008 assessment. However, real estate taxes for 2008 pay 2009 should reflect the real estate caps implemented by the Indiana state legislature. The caps are being phased in over two years. For 2008 pay 2009, the property tax caps will be: 1.5% for residential property; 2.5% for non-residential property and agricultural land; and 3.5% for commercial real property. Real estate taxes for 2009 pay 2010 are currently scheduled to be capped as follows: 1.0% for residential property; 2.0% for non-residential property and agricultural land; and 3.0% for commercial real property.

 

As indicated above, the filing deadline for a tax appeal is 45 days from the mailing of the tax bill (or 45 days after receipt of a Form 11 - Notice of Reassessment). We encourage you to carefully review the second installment of 2007 pay 2008 real estate taxes as well as the first installment of 2008 pay 2009 real estate taxes. Taft would be happy to review your tax bill and assist you in determining whether an appeal of your property is appropriate. There are many factors used in determining whether an assessment is indicative of the property’s true tax value, including recent sales prices, recent appraisals, vacancy rates and income statements. These factors, among others, can be used when filing an appeal with the County Assessor. 

 

In light of the current economy and the reduction in property values, owners should strongly consider appealing their property taxes and Taft can assist you in such efforts. Please contact Jeff Cromer at (317) 713-3454 with any questions you have relating to real estate taxes.