Making sense of property tax assessments

By FRED SWIFT

The County Line

Property assessment and its effect on taxation is a somewhat complicated subject for many folks, but I will give you my understanding of it.

Thousands of Hamilton County residents and business owners received reassessment notices last week notifying them of changes in the taxable valuation of their property. Most properties have had assessments increased and there have been more increases on structures than land this year.

The increases are based on the recent sales of comparable properties in the immediate area of a subject home or property. The real estate market is “hot” in Hamilton County, and assessments reflect this.

Countywide, the increase in the total gross taxable valuation (the tax base) appears to have increased from $42.3 billion last year to about $47.3 billion this year or about 12 percent, which is a tremendous one-year increase.

The net valuation, yet to be calculated, is much lower due to the various deductions including homestead exemptions, tax abatements, etc.

But, it will be a big increase nevertheless, which comes largely from new construction and trending upward in the value of existing homes and businesses. Estimates from the county assessor are preliminary and unofficial, stressed Assessor Robin Ward.

But, if the final net assessed value expands another 10 or 12 percent this year as expected, and city, county, schools and libraries hold next year’s spending to only modest increases, then individual tax bills next year should not rise significantly or, in some cases, at all.

If, on the other hand, elected officials decide to make the most of the big increase in the tax base, and leave their tax rates as they are or increase them, most individual home owners could expect a major hike in their tax bill.

Few property owners want to see higher taxes unless absolutely necessary, but even fewer understand the taxation system and when to voice their opinions.

Appeals of higher assessments are an option for homeowners and businesses. Later this year, there are public hearings on next year’s proposed budgets.

In some Indiana counties, the tax base is static or shrinking and property tax hikes are absolutely necessary to maintain public services. But, not in Hamilton County. It’s one of the advantages of living in the state’s wealthiest county.