Straight Market Value | Trending | Business People Article
STRAIGHT MARKET VALUES
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TRENDING
No, this is not about the latest summer fashions this year, but
is something that will affect your pocketbook the same next year.
Trending is a market adjustment that will
be applied to all Indiana properties for the 2006 pay 2007 tax
year. Trending falls just
short of an overall statewide reassessment like the one that occurred
for 2002 pay 2003. The next reassessment in Indiana has been postponed
from 2009 (pay 2010) to 2011 (pay 2012). Instead of a “sticker
shock” in-between reassessment cycles, Indiana, for the first
time in history, will be trending the 2002 reassessment values
that is the basis of real property taxes for all Indiana taxpayers
until the 2011 reassessment.
What does this mean to you? The verdict
is out and the final results are unknown at this time. However,
the criteria for a trend adjustment
can indicate or provide an estimate of what to expect. The trend
factor applied is based on Indiana’s lien date of March 1,
2006, using a range of market data from January 1, 2004 through
December 31, 2005 (2 year period) based on an assessment date of
January 1, 2004. That may seem confusing, but in layman’s
terms, the tax assessment for 2006 (pay 2007) will be updated using
market information from 1999 to 2004. Depending on the area of
property, trending factors will as a general rule increase assessments
10 to 20%. Obviously, this will vary. In fact, some trend factors
will be a negative adjustment bringing the assessment down; however,
most Indiana taxpayers once again, can anticipate their tax assessment
will increase which in turn means your property taxes will increase.
WHAT CAN YOU DO?
Possibly appeal your value or hire a consulting firm such as Integrity
Tax Consulting to insure the value increase is fair. It is quite
possible the new value will be excessive because a trend factor
is a mass adjustment to all properties in your area. Integrity
specializes to insure the assessment is accurate specifically to
our client and that you are not simply put into a computer and
treated as just another number. Many do not know that your assessment
can fall within a prescribed market range by law that allows for
a significant fudge factor, they allow for an error rate that is
acceptable in mass valuing standards.
It is wise to be proactive to prepare now for the upcoming trending
for 2006 and beyond. Integrity will ensure you weather the storm
coming with the result of a fair, accurate and equitable assessment. IF
WE CAN’T SAVE YOU MONEY, THERE IS NO COST. Trending
will soon be on our doorstep and it will not go away. The state
has already approved trending to be an annual adjustment that will
also affect your 2007 assessment up through the 2011 reassessment.
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A Taxing Business.
Integrity Tax Consulting was featured in the December issue of
BusinessPeople magazine!
Click on the pages below to read the
article.
Are your property taxes too high?
Integrity Tax Consulting was featured in the November issue of
BusinessPeople magazine!
Click on the pages below to read the
article.
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