2012 may not herald the apocalyptic collapse of the world, as that eponymous movie so spectacularly indicated. But it will be different from other years in a significant way: March 1, 2012, will bring the next Indiana General Reassessment. And it has the potential to change the valuation of your property.

Most years, the state only makes adjustments calculated by comparing a property's prior-year assessment with current sales data from a similar property. This process is called trending.

While trending can help assessors maintain current market values, it can be problematic. When there is a lack of sales data on similar properties, it can result in inflated or under-assessed property values. And the further out from a full reassessment, the weaker the trending data--much like an original that has been photocopied too many times.

During a general reassessment, each property/parcel is physically inspected and assessed. Assessors (or contracted county representatives) visit every property to inventory and verify the physical characteristics of a parcel, making any needed changes to the property record card where there has been a change or where something was omitted.

Of course, a general reassessment carries inherent risk too. There is a lot of work, very little time and a variety of different assessors with different techniques that might bring different results. These challenges create room for appeal.

The Department of Local Government Finance is expected to provide the preliminary cost information to counties by July 1 of this year. Some counties will not show much difference in values because they have been updating cost tables each year. Some will simply remove the old cost tables, insert the new ones and start over again with the market value.

The counties then will begin to re-price all parcels with the revised cost and depreciation information and conduct preliminary equalization/ratio studies.

Assessors already are visiting properties to submit values to the property tax assessment board of appeals by November 1, 2011. Physical changes that have been omitted previously in trending may be corrected as soon as 2012 pay 2013. Taxpayers will receive notice by mail of the amount of assessment/reassessment, also known as a Form 11.

If trending along the way has been any indication of what we can expect with the upcoming reassessment, we can see a major tax storm brewing on the horizon. An aggressive government is looking for tax revenue on the heels of one of our most significant recessions in history, and we anticipate a storm front of errors.

If we have been keeping your assessment in line on a yearly basis, you should not see any major changes to your assessment. Trust Integrity--we prefer to avoid catastrophic events in our movies and our finances.

And if you think there's room for an appeal of your new assessment, Integrity has the gear and the years of experience to see you through the storm. With four general reassessments under our belts, we can look closer and more carefully and find the nuances overlooked even in an assessor's site visit. We can establish the correct baseline from which your trending will be factored going forward. Our certified tax assessors can return you to a firm foundation whatever 2012 might bring.

Please contact one of Integrity's certified tax consultants to discuss specific questions regarding the Indiana General Reassessment's potential effects on your property valuation.