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.
A new elementary school, school safety projects and money to raise teacher pay were some of proposals voters saw – and rejected – on ballots around the state this week.
As more districts take property tax hikes to voters, the formula for passing school referendums in Indiana may be faltering. Two election cycles of lower-than-expected pass rates have one economist wondering if it’s just a blip or a new trend, as the number of districts that can get a referendum passed starts to plateau.
“It’s low, especially for a May election,” said Larry DeBoer an economist at Purdue University who studies government public policy and keeps a close watch on school referendums. “It’s the smallest percentage of winners in a May election since May 2011.”
For the first time in a long time, Indiana has created new assessment deadlines across the state depending on the issuance of assessment notices. But how does this effect your tax bill and why should you care?
For those counties that are just now sending January 1, 2018 tax bills and didn’t issue Form-11 Notice of Assessment Change forms (which looks like this), the previously established deadlines found in IN Code 6-1.1-15-1.1 still apply. In this case, taxpayers have 45 days from the mailing of the tax bill to file an appeal. This will be the only date taxpayers have to contest a 2018 assessed value they don’t necessarily agree with.
The change in IN Code 6-1.1-15-1.1 is a whole new set of appeal deadlines across the board for all counties. Here is how it works. Beginning with the January 1, 2019 assessment date, if a taxpayer receives a Form-11 mailed prior to May 1, they have until June 15 of that same year in which to file an appeal of that Notice of Assessment. In other words, using our example of this year…
If you have already received notice of your assessment for 2019 (May 1, 2018 until April 30, 2019), you have until June 15th, 2019 to file an appeal. This will be the only time an appeal can be filed on this assessment.
If a Notice of Assessment is not issued until after May 1, the taxpayer has until June 15 of the following calendar year in which to file an appeal. For counties that use property tax bills as their “notices”, this creates a deadline of June 15th in the following year. As an example…
When you receive your tax bill [in a county not issuing a Form-11 for 2019] for the January 1, 2019 assessment date (most likely in March or April of 2020), the deadline will be June 15th, 2020.
Sound confusing? Let us help. If you have a commercial or industrial property that has not had the property tax assessment reviewed in a while, make sure that becomes a priority. You could be paying for assessment errors or on a total value that exceeds the market value in use of your property. Call us to see if you are being overassessed and see how Innovative Property Tax Solutions can help. 219-472-8682.
SOUTH BEND — When Ryan and Susan Greutman got their new property assessment in the mail this week, they were left baffled, wondering how a 300-square-foot addition to their home could lead to a 59 percent increase in its assessed value.
The couple extended the front wall of their house on the city’s northwest side, so they expected the value of it to increase. But when they received their notice this week, they saw their assessment jump from $123,000 to $194,400.
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.
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
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.
Though not necessarily happy for some, today is Tax Day across the United States. For the last 64 years, tax day has fallen on April 15th (or close to it if the 15th falls on a weekend). All federal returns need to be postmarked by midnight tonight in order to not be considered late or in need of an extension (which would be October 15).
Have you ever wondered why Tax Day is April 15th? The quick, historical explanation plays out something like this…In 1913, the states ratified the 16th Amendment to the Constitution, granting Congress legal authority to tax all citizens incomes. Later that year, Congress passed the Revenue Act that established the basis of the income tax. In the first year income tax was due, the deadline was March 1. Realizing that the legislative changes made that date difficult on many taxpayers, the date was later changed to March 15th. Then in 1955, the IRS decided an extra month was necessary and established April 15th as the deadline, which is still the same today.
Last week, the IRS reported that there were still about 50 million American’s that had not filed their taxes. But if you are one of these people, make sure you take your time filling in the forms. Rushing through the process can lead to making mistakes; mistakes can lead to delays or potential red flags for the IRS. If you have the ability to file electronically, the IRS recommends that as a means to submitting your returns. In fact, this year about 70% of all taxpayers can file their returns for free using the IRS software available online.
While Innovative Property Tax Solutions does not handle income tax related issues, we do focus on another large and sometimes expensive tax…Property Tax. Innovative can help save you valuable tax dollars that can go back into your bottom line. If you own commercial, industrial, or multi-family residential property, give us a call after you have finished your federal returns and speak to one of our experts. 219-472-8682