Tax Court affirms calculated property tax cap on Kokomo property – Katie Stancombe – The Indiana Lawyer

The Indiana Tax Court has affirmed the property tax liability assessed against a Howard County urban development company, finding issue with the company’s argument concerning Indiana’s definition of gross assessed value.

Kokomo Urban Development, LLC owns a moderate-income apartment complex in an economic revitalization area, or ERA, of Kokomo. As a result, Kokomo Urban was entitled to 100 percent ERA deduction for the 2015 tax year and a 50 percent deduction for the 2016 tax year.

In 2016, the Howard County auditor determined Kokomo Urban’s property tax liability was $47,720.46, which did not exceed the calculated 2 percent tax cap amount of $49,134. Kokomo Urban, however, argued its liability should have been capped at $25,000 under Indiana Code section 6-1.1-20.6-7.5. The issue, the company argued, was whether the 2 percent tax cap under that statute should have been applied to the property before or after the ERA deduction.

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Wigwam Holdings loses assessed value appeal for 2016 taxes – Ken de la Bastide – The Herald Bulletin

ANDERSON — The Indiana Tax Court has denied an appeal filed by Wigwam Holdings to change the assessed value of the iconic facility for 2015 property taxes payable in 2016.

Matt Carr, an attorney for Wigwam Holdings, said Thursday that an appeal could still be filed with the Indiana Supreme Court. He said that option is still being discussed.

Carr said Wigwam Holdings has filed appeals for the 2016, 2017, 2018 and 2019 assessed value on the 220,000-square-foot facility.

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Indiana Property Tax Bills Due May 10th

Indiana property owners need to have their first installment of the 2018 payable 2019 property tax bills to their county treasurer’s office by Friday, May 10.  The second installment is due later in the year, November 10th (11th because of the weekend this year).

If you haven’t yet made a payment, do so by Friday so as not to incur any penalties. After Friday, penalties and interest begin to accrue. If you have questions on your bill, contact your local official.

If you feel your assessed value may be incorrect or needs reviewed by an expert, give us a call at 219-472-8682 to see if Innovative Property Tax Solutions can help.

Tracking how central Indiana schools are spending tax referendums – Stephanie Wade – RTV6

INDIANAPOLIS — Next month schools will once again ask you to approve money requests on your May ballot. 

As we saw in last year’s elections, passing school referendums can be a hotly contested issue. But when it came down to it, voters mostly backed the schools. 

What was promised to voters in many referendums was to better pay teachers and increased security inside their buildings. RTV6 followed up with several districts that asked for millions of dollars from taxpayers to see if they’ve accomplished what they said they would

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Mounds Mall Sold At Certificate Sale – Alex Brown – Inside INdiana Business

ANDERSON – The Mounds Mall in Anderson and the land on which it sits have been tentatively sold to new owners. Our partners at The Herald Bulletin report the building and property were sold to different owners Monday at the Madison County certificate sale for a total of $17,000.

The building was acquired for $12,000 by Mark Squillante. Two parcels of land that cover the Mounds Mall property were sold for a total of $5,000.

The mall property is currently owned by the Cook family, which has been looking to offload the property for more than a year. Last month, the family reached a deal to sell the property to Baumann RE LLC for $3 million.

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By Definition: What is the difference between Market Value In-Use and Market Value?

Indiana’s system of market value-in-use was established based on legislative changes that went into effect in 2002. This new system replaced the old assessment practice of only reassessing every 10 years. Annual adjustment or “trending” is now performed each year in order to try to keep property values consistent with what the local real estate markets will sustain. But what is the difference between what Indiana considers market value in-use and actual market value and how do they relate?

Let’s start first with Market Value since that is what most people are familiar with. Market value is generally accepted to be the most probable price which a property would bring in a sale between a willing buyer and seller under arms-length conditions, in an open market with adequate market exposure and reasonable marketing time. Market value, or MV as we will refer to it from now on, is sometimes considered a properties value in exchange. In simplest terms, how much is someone willing to spend to acquire the property. If you list your apartment building on the market for 120 days, asking $2,000,000, receive a few offers in that time frame, and eventually sell for $1,800,000, that final value would be the MV.

Market value in-use (MVIU) is slightly different in definition but, at least in Indiana, very similar in application. MVIU is the value for a specific property for a specific use. In other words, it is the value of the property based on its utility to its current owner or similar owner for its particular use. The MVIU could be considered the price that would induce the owner to sell and the buyer to buy a property and continue using it at its current use. If we’re talking about a residential property, the MVIU should be reflective of the fact that it is a property someone lives at rather than a commercial location for example. In another example, lets say you own an office building that you then sell in an arms-length transaction and it continues to be used as an office building afterward. In this case, the sales value would be indicative of the MVIU as well as the MV.

In markets where sales do not represent the utility to the owner, the MVIU will not be equal to the MV. As an example, in the case of special use properties, the utility to its owner may sometimes be higher than their sales price. Another case would be a market where owners are motivated by non-market factors. Take an operational farm at the edge of urban sprawl and commercial development, for example. The market would call for more commercial development here rather than farming and thus, a higher market value of the land. However, agricultural land is traditionally valued very low from an assessment standpoint and should continue to be as long as it remains agricultural in nature.

If all of this sounds confusing, you are probably in the majority. Innovative Property Tax Solutions is a full service property tax consulting firm that specializes in navigating this confusion for you. Our team of expert Level III Certified Assessor/Appraisers have many years of experience and training with property assessment analysis and appeal representation.

If you aren’t sure if your property is at the correct market value in use, give us a call today and speak to one of our experts. 219-472-8682.

Tax abatement a sweet deal – Chas Reilly – The Times

HOBART — Tax abatement has been finalized in association with Albanese Confectionery Group’s latest production expansion.

Albanese is investing about $60 million in manufacturing equipment for gummies and chocolate, and the company plans to begin the operations expansion project “almost immediately” now that the City Council has completed the traditional 10-year personal property tax abatement request, Mayor Brian Snedecor said.

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South Bend Common Council awards growing businesses property tax breaks – Jeff Parrott – South Bend Tribune

SOUTH BEND — The South Bend Common Council unanimously approved property tax breaks for six business development projects Monday night, including two that especially signal a strong local economy, a city administration staffer told the council.

The real and personal property tax abatements, combined, will give the businesses more than $7.6 million in tax discounts in exchange for creating 62 new jobs, or $123,161 of tax reduction per new job.

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Bill would reverse court ruling defining tax – Niki Kelly – The Journal Gazette

INDIANAPOLIS – A House panel approved a bill Monday that would reverse a court ruling on what constitutes a tax in Indiana.

Lawmakers are trying to undo an Indiana Tax Court ruling that could have profound negative impacts on local government finance around the state.

But even some of the legislators in support of the measure disagree with the basis of the bill – a user fee versus a tax.

Rep. John Young, R-Franklin, said he isn’t sure the case “is going to turn everything on its head” but that it puts the legislature in a tough position.

He added that you can call them fees all you want but “I don’t know why a stormwater fee that you can’t opt out of isn’t a property tax.”

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By Definition: What is this “trending” thing I keep hearing about on my property?

In Indiana, property owners all pay property taxes twice a year, once in May and again in November. The tax amount owed is a result of two things, the tax rate and the assessed value. Many times the question comes up as to why the assessed value of the property changes every year, regardless of whether there is a change made to the property. This occurrence is referred to as an annually adjusted property value or trended value. But what exactly does that mean? Let’s start with a little background.

In 1999, the Indiana Supreme Court ruled that the previous system that involved reassessing properties every 10 years was unconstitutional. This ruling forced the State legislature to devise an assessment plan that better reflected a market relatable values. Indiana lagged behind most of the country at this point, since almost all 50 states had already changed their assessment systems to reflect local market conditions. In 2002, the state began shifting their process and moved to what is known as a market value in-use system of assessment.

To accomplish this task, assessors implement annual adjustments or trending within each taxing district throughout the state. This involves calculating differences between the prior year assessment of a property and current or more recent sales data from similar properties. In the case of residential properties, sales of like homes within similar neighborhoods are collected and analyzed. For commercial or industrial properties, market data is compiled for property types within each class to make a determination. Once the difference is determined, either positive or negative, a factor is created so the assessor can adjust values closer to what the market value-in-use would reflect.

The ultimate goal here is to eliminate the large, lump sum “catch-up” adjustments that occurred under the old system of 10 year assessments. Because property values consistently rise and fall over time, trending is designed to make value determinations appear more realistic. As a result, taxpayers may see a concurrent rise or fall in their assessments from year to year. Or, sometimes the may even see no change at all.

How do you know your assessment is correct?

Your assessment should be reflective of what a willing buyer would pay for the property at the time of assessment. For instance, for 2019, the assessment date is January 1, 2019. If your 2019 assessment is accurate, it should represent approximately what your property could have sold for on or near January 1, 2019. If your assessment is inaccurate, the value will be something other than what normal market conditions will dictate at that time.

Innovative Property Tax Solutions can help make that determination for you and represent you throughout the process of having incorrect values corrected. Our team of Level III Certified Assessor/Appraisers have many years of experience and training in market analysis, cost reconstruction, and income based assessment analysis. We make sure your assessments are correct and accurately reflect market value, ensuring you are only paying your fair share in taxes and nothing more.

Give us a call today at 219-472-8682 and speak with one of our experts.