Over the years, property tax bills have gotten a bad rap. More often than not, it seems, they arrive late. But why does this happen? And more important, what can we expect in 2011?
In recent years, changes to the market value-based system were likely to blame for the perpetual delays. In 2007, the state began using a process called "trending" to update property values each year. The goal was to reflect a property's market value more accurately.
Not surprisingly, the introduction of trending came with a few hiccups. Assessors had to adjust to a new process, which involved a new formula for calculating taxes. Rather than on-site evaluations, assessors began looking at a property's assessment from the previous year and current sales data from the surrounding neighborhood.
After being in place for several years, it seems that most everyone has adjusted to the new system. In 2010, in fact, property owners in almost all of Indiana's 92 counties received their spring property tax bills on time. (That on-time mailing was a first since 2002!)
So, what can we expect in 2011? If all goes according to plan, this year's property tax bills will also be on time for the second year in a row. The Department of Local Government Finance, the state agency that oversees property tax assessment and local government budgeting, is making a statewide push to keep things moving according to schedule. Put simply, the agency wants to see property tax bills postmarked in time for both the May and November installments.
As of last week, the DLGF had certified the 2011 budget order and tax rates for 86 Indiana counties, which means the state is on pace to have all property tax bills in the mail on time. "The certification of the budget order and tax rates sets the stage nicely for on-time tax bills for the second consecutive year, returning predictability to the property tax system," DLGF Commissioner Brian Bailey said recently. "A tremendous amount of cooperation and collaboration between local and state officials is required to ensure property tax bills go out on time, and it is rewarding to see all the efforts pay off."
Want to know more? Integrity's certified tax consultants would be happy to explain the assessment process in further detail.
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Property tax manager Dave Schaadt brings almost 24 years of tax experience to the Integrity table. Over the course of his career, Dave has worked in an assessor's office and operated his own assessment company. His diverse work experience gives him valuable insight into the entire tax assessment process and makes him a valuable member of the Integrity team.
Dave is a certified tax representative, and he maintains his Certified Level II designation.
Outside of work, Dave stays active by coaching his two sons in basketball and baseball.
