Property Taxes

[dooleysm]

For years there's been a call for property tax reform in Indiana. A year or two ago they finally passed a 1% property tax cap (for individuals, I think business is capped at 2%). This was hailed as a great step in property tax reform and all the politicians patted themselves on the back.

Anyone with half a brain knew what was coming though, as they sure didn't cut any programs to offset the loss in revenue. The 1% cap did nothing to address assessments.

In that spirit, the assessed value of my 10 acres went up by 85% over the past year. I'm pretty well read in current events, better than the average American I'd guess, and I don't recall hearing ANYTHING about a major resurgance in real estate values in 2009/2010.

I was pretty upset until I talked to my dad. His 30+ acres that adjoins our 10 acres went up almost 1200%!

We're both planning to contest this assessment, anyone have any advice in this area?

 

[oldnslo]

For years there's been a call for property tax reform in Indiana. A year or two ago they finally passed a 1% property tax cap (for individuals, I think business is capped at 2%). This was hailed as a great step in property tax reform and all the politicians patted themselves on the back.

Anyone with half a brain knew what was coming though, as they sure didn't cut any programs to offset the loss in revenue. The 1% cap did nothing to address assessments.

In that spirit, the assessed value of my 10 acres went up by 85% over the past year. I'm pretty well read in current events, better than the average American I'd guess, and I don't recall hearing ANYTHING about a major resurgance in real estate values in 2009/2010.

I was pretty upset until I talked to my dad. His 30+ acres that adjoins our 10 acres went up almost 1200%!

We're both planning to contest this assessment, anyone have any advice in this area?

Here in Illinois there is a form you can fill out to protest your taxes. Been a LOT of flak around here also about home values declining and the taxes are not. Going to be an interesting year for the tax assesors nation wide.

Silly question: With the cap at 1% and the increased value, did your taxes go up significantly?

Roy

 

[Bird]

Shawn, I've had the same thing happen the last 2 years, but not nearly as big a percentage as you've had. We can go talk to one of the appraisors and if not satisfied there, we can file a written appeal to an appeal board and get a date to show up to present any evidence you want to that board. But each of the last two years I've gone to talk to an appraisor and the promptly lowered the appraisal. Of course, I took documentation as to what I paid for the property, homes for sale in the area at what asking price, etc.

I think they figure that most people won't take off work to go protest so they can raise more tax money that way and just lower the appraisal for those who do show up.

 

[tulenutn2o]

We had the same thing in Iowa last year, but it was only 6%. Still made me hoppin mad. I protested and won. Only thing is, you only get to protest the increase, not the loss in value that the real estate market has seen as a whole. Just remember, the "man" is always going to figure out a way to take your money- whether they call it a tax, fee, license, permit, whatever.......Don't get me started now...........

 

[devildog1]

Now I'm not making this thread political but this is one of many issues all across our great nation. There is a new organization that talks about many of these issues," Tea Party". Remember them on your election day and vote out ALL INCUMBENTS who are now in office. Many have been in there way to long and have not did or voted the way there constituents wanted.It's the First step to take back control for the people by the people. Choice is yours, sit back and complain, or do something about it.
DevilDog

 

[txdon]

Make sure you make the deadline to file your protest, then start doing your homework. Know your tax law and how the appraisers are mandated to determine the value of your property.

In Texas the value is determined by like nearby property sales within the last year. If it is like that in Indiana just talk to a realtor in your area. It sounds like the appraiser's office had a shake-up to get the values up to offset a deficit. For them to increase the value that much they were probably too low to begin with.

Remember, the top person of the appraiser's office was elected by YOU!

 

[dooleysm]

Our tax rate is not yet up to 1%, though there was an increase. I don't have the percentages in front of me, but they had it broken into a variety of categories (state/county/township, etc.). My tax bill for the year went up about $230, to about $1800. The dollar amount is not enough to make me cry about, and in fact I prefer to pay property taxes. Or rather, I like the programs my property taxes fund better than what my income taxes fund.

Also, the assessed value of my land is now closer to what the real value probably is. My 10 acres went from $17,000 assessment last year to $32,000 this year. I paid $25,000 for the land in early 2004, and I think I got a good deal on it then.

That's not the point though, in my mind. For the past 5 years they've claimed my land was worth $17,000. Now in a recession, with declining property values, they claim it is worth 85% more than last year. If I allow this to stand, what legal recourse will I have next year when they claim my property *only* increased by 50%?

This is a sneaky, underhanded way to increase tax revenue, and as a concerned and educated citizen, I can't let this happen.

According to my preliminary research, my first step is to file an appeal with the county assessor. If my assessment increased by more than 5%, the burden of proof is on the assessor.

 

[tulenutn2o]

AH, welcome to the "New America" my friend. Iowa's "taxes" have risen so much in the last few years in the form of: tax increases, fees, fines, permits, licenses, you name it. We get less and less for what is spent every year. I thought this country started with people fighting to get away from taxes. Our motto should read," Land of the TAXED, and TAXED again"

 

[MossRoad]

For years there's been a call for property tax reform in Indiana. A year or two ago they finally passed a 1% property tax cap (for individuals, I think business is capped at 2%). This was hailed as a great step in property tax reform and all the politicians patted themselves on the back.

Anyone with half a brain knew what was coming though, as they sure didn't cut any programs to offset the loss in revenue. The 1% cap did nothing to address assessments.

In that spirit, the assessed value of my 10 acres went up by 85% over the past year. I'm pretty well read in current events, better than the average American I'd guess, and I don't recall hearing ANYTHING about a major resurgance in real estate values in 2009/2010.

I was pretty upset until I talked to my dad. His 30+ acres that adjoins our 10 acres went up almost 1200%!

We're both planning to contest this assessment, anyone have any advice in this area?

Be glad you do not live up north here in St. Joseph County... we are one of two counties in Indiana with "special" rules applied. That is, our county gets to raise the property tax at a higher rate than yours got raised because our county is too dependant on property taxes. :laughing:

With that said, due to reassesment, our property taxes on the house went down to under $400 for the year! :confused2: Our vacant 20 acres went up from $130 to $190 for the year. (the land is worth more than the house... go figure that one).

AND.... to top it all off, in our county it takes two of the three major government units to pass a county option income tax increase. The three major units are Mishawaka, South Bend and St. Joseph County. Mishawaka voted no. South Bend voted yes. That left it up to St. Joseph County. There are something like 9 members of the County Council. All of the councilmen with constituents living outside of city limits voted NO. However, most county residents live within those two cities mentioned above. They have county councilmen representation AND city representation. Double vote! Guess what? They raised the local option income tax by 1.5%.

So the property tax relief that was to happen did happen. My property taxes dropped and/or were adjusted properly. However, my local option income tax was a 700% increase over my property tax "relief"! :shocked:

 

[dmccarty]

When was the last time the land was appraised?

When we bought our land the county was doing appraisals every seven years. We bought at year six. Year seven was the following year and boy howdy did we have a surprise valuation and corresponding property tax increase. :confused2:

I cannot remember the exact numbers but we had at least a 300% increase in land value. Unfortunately for us the valuation was correct since we had sold some land and their were comparable properties supporting the valuation. :confused2:

We had two options, sell land to lower our tax bill or put the land under a timber/ag valuation which is what we could do and did do.

Property taxes are evil. The land we have that is paid for free and clear is not our land. It is owned by the county. I get to do what I want with land with in THEIR rules as long as I pay their rent aka property taxes. If one looses income one pays less in income taxes. If I loose income my property tax does not decline. I could easily loose my land to property tax increases. We nearly did. I know of families who have lost land because an elderly widows could not pay the property tax.

Income and sales taxes are much fairer than property taxes. The only tax worse than the property tax is VAT.

My elected county officials, some of whom I hope will be out of office this year, want to create "corridors" against development along two major roads in the county. The "corridors" are 3,000 feet across. 1,500 on each side of the road. The land owners will be very restricted in what they can do with their land. Basically they will have to keep it looking rural so that people in the subdivisions have something pretty to look at during their drive to work.

Of course most to the land is question has been owned by native families for generations and at this point there is not much they can do with the land to earn income. They cannot really farm since the land is not that fertile and the tobacco cash crop is gone. They don't have enough land to grow other type of row crops so there really is not anyway to make much money off the land anymore.

So the owners aka renters will be able to keep the land as is, with no income to pay their property tax but maintaining the view for the spoiled, selfish people of the county. At least as long as they can pay the rent. At which point the county takes the property.

Thankfully our land is not in the proposed corridors but the same ya hoos who came up with this idea have other plans in the works.

Good Luck,
Dan

 

[ToadHill]

Well in New York we have the most generous Medicade program in the country. When I get my county property tax bill it is broken down to show what it goes to and almost 100% of it goes to pay the county assessment for medicade. The county lives on sales tax revenue.

 

[VTFireftr]

I feel your pain.

Last year my little town in Vermont was required by the stste to do a twon wide reappraisal (sp). My property values went up 130% in just 10 years! My two adjoining neigbors values went up even more. And we all live on a private road that we maintian ourselves, with no help from the town.

The average increase for the rest of the town was 105%. We all appealed our increase stating that we felt we were asessed (sp) a "seclusion tax" since we all lived on a secluded private road off the beated path - of a small rural community! I eventually had my reappraisal lowered to 115%. Both my neighbors are still fighting and will wind up in court this summer.

The best part is, none of us have kids in the school, nor do any of us use any of the town's limited services. The police department doesn't know where I live. And our fire department - I'm a 20+ year member - is a volunteer department.

The biggest cost to our taxes is the frekin' schools. All of which are sub-standard, but the teachers have a great collective bargaining agreement. I'm a union member, so I won't bash any unions, but the school committe has to say enough is enough.

OK, I'll stop.

Both my wife and I love where we live and will just keep bitching, since we can't do anything else, and don't care to move.

Marc

 

[Mousefield]

The property assessments went way up in our area as well. Some even more than doubled and this in a slow real estate market. This was on the land value, not buildings. Some bureaucrat sat in their office and decided, somehow, that mysteriously, all the land had gone up in value. Two neighbor's did go to appeal, one got theirs reduced by about $140,000. the other about $80,000. Of course the taxes will not go down as they will just adjust the mill rate. Values in some cases are totally unrealistic to what the land would sell for.

 

[ultrarunner]

Had the same problem in WA State... 80% increase. I was never able to get it lowered and my long time neighbors said they got tired of appealing every year...

The only place I know Property Tax to be somewhat predictable is California... in general, taxes may only increase 2% per year without 2/3 voter approval... although they already carved out a 55% approval for school construction money.

I can only imagine where this is all headed...

 

[mbohuntr]

Yep, Built a brand new home on 50 acres after getting quotes from the town for taxes. Sold it 5 yrs later after both the assessment and the rate skyrocketed. I grieved it the first time or two and won, the next year they increased by an even larger amount??? I was lucky enough to sell it at the top of the R/E boom. New owner was from out of state, and it shocked him when it increased AGAIN. For a while, the town meetings were pretty scary... Gonna get even uglier as people who have lost jobs, and are making less now can't afford to live in their homes... Moved to a different town and MUCH happier... Thank-you NAFTA.. Advice... Get as much proof as you can that your increase is more than your neighbors...

 

[dooleysm]

I looked at a few of the neighbor's tax bills online. I pay less than everyone around me. I don't have a leg to stand on as far as the assessed value. My complaint is with the percentage increase.

If they were wrong previously about the value of my land, why would I have any confidence they are right this time?

I've downloaded, printed, and filled out the appeal form. I plan to take it in to the assessor's office on my day off on Friday. They have to know that people are watching what they are doing and willing to fight. If everybody accepts the unrealistic increases, then they will continue. This is our government, they work for us. We just have to remind them sometimes.

 

[charlz]

My elected county officials, some of whom I hope will be out of office this year, want to create "corridors" against development along two major roads in the county. The "corridors" are 3,000 feet across. 1,500 on each side of the road. The land owners will be very restricted in what they can do with their land. Basically they will have to keep it looking rural so that people in the subdivisions have something pretty to look at during their drive to work.

They were looking at doing something like that for a proposed highway here. Make a wide 'no build' corridor for a few years and wait for the state to decide where the highway would go. A lawyer spoke up at one of the meetings and advised that it would open them up to all kinds of 'takings' lawsuits and that nipped it in the bud.

Our assessed values and property taxes have actually been trending down the last few years which is interesting. Makes you wonder what they were doing with all the money they collected a few years ago that they are not collecting now?

 

[woodsman324]

My town is going through re-assessments now. On my 200 acres they have tentatively raised my taxes from 2400.00 per year to 8400.00 per year on plain land, no buildings. I am in the process of fighting them. The slick deal they did was to give everyone access to what others were assessed for, but those were mostly ficticious figures that they had put on them. In other words if someone had a couple hundred acres and looked up and found what I was paying they would think "oh well this guy is paying it so I guess we have to also". Be sure what your comparing to when your fighting. My theory is simple. I say if the town wants to assess a value to any property then they better be willing to buy that property for that price within 6 months or lower the assessment if the owner calls their bluff. This would keep them honest and prevent them from taking advantage of their power.

 

[2manyrocks]

They already spent that money they collected.

I used to live in a town where the Mayor raided the sewer improvements fund to pay for a football stadium and then property taxes went up, up, up to pay for everything he spent on borrowed money.

Many towns owe money for various things and when sales tax revenues hit bottom, then they are stretched to meet budget. Even if property values have declined 30-40% as they have in many places, they are slow (very slow) to adjust tax valuations downward.

 

[Tororider]

I agree with Bird, although I have even heard of them changing appointments to make it less convenient for you to meet them. Good luck.

Shawn, I've had the same thing happen the last 2 years, but not nearly as big a percentage as you've had. We can go talk to one of the appraisors and if not satisfied there, we can file a written appeal to an appeal board and get a date to show up to present any evidence you want to that board. But each of the last two years I've gone to talk to an appraisor and the promptly lowered the appraisal. Of course, I took documentation as to what I paid for the property, homes for sale in the area at what asking price, etc.

I think they figure that most people won't take off work to go protest so they can raise more tax money that way and just lower the appraisal for those who do show up.