Can somebody help me understand the nuances of IN property taxes

[KittySlayer]

Says we have 45 days to file an appeal. It also says we MAY appeal the TOTAL value. We MAY NOT appeal land, structures/improvement value individually.

The assessment on our home went up significantly this year. I went to the Assessors office and (politely) asked for an explanation about the change. The first clerk looked up my assessment but could not really explain the change. The supervisor, who was familiar with our neighborhood, came over and looked at the detail in their system. She acknowledged it did look high and explained how they used comparable sales in our neighborhood. Looked a little deeper and agreed the new increased assessment was too high and made an adjustment while I was standing there. No forms, no appeals, just a pleasant conversation (go when they are not too busy). I played the naïve homeowner just asking questions, she played the public servant. I am sure had I went in and acted like a jerk they would have just handed me an appeal form and sent me on my way.

Can you list the various arguments that are acceptable in a protest? I've been unable to locate this info.

Comparable sales are always a good starting point. Are there similar homes recently sold in your neighborhood?

Also review the underlying assessment details for inaccuracies. Too many bathrooms, wrong square footage, incorrect construction materials/details, etc. Our home has two fireplaces listed but we only have one, have not protested that one as it does not materially impact our assessment.

Keep in mind that when you appeal they could find things that make your assessment go up rather than down so decide if your appeal is worth it.

 

[4651feeder]

...I think it is time to file an appeal. Has anyone had any luck doing that in here.

Yes, but more helpful than luck was being prepared with presentation of recognized documentation supporting my appeal. I had a recent independent appraisal attached to the appeal in support of my claim.

...Property taxes are assessed on a specific day, not for a 12 month period. So on assessment day you need the appropriate Homestead exemption and Mortgage exemption on file for the applicable property.

Perhaps I'm misunderstanding your statement. I purchased a home previously owned by a corporation (no homestead exemption) on 11/30/2012. Because I was eligible for the exemption, my 2012 taxes paid in 2013 reflected the lower rate. That corporation by the way credited 11 months of taxes at their higher rate during closing and I came out like a bandit on that first year as all 12 months were taxed at the lower rate. Is assessment day considered Dec 31st?

 

[Thegeek]

Anything you think they have wrong can be challenged. My last home was appraised for 92k. I bought it for 82k. Larger homes around me were selling for 102k. The assessor claimed my home was 105k. I walked into their office with a Mibor report, my mortgage appraisal (albeit a few years old), and a copy of my floor plan. I simply stated that I believed my assessment was unfair. They reviewed the documents, made some notes, and within a few days I got a letter stating my assessment had been changed. They dropped it to the appraised value. Which is very cool since the assessments are usually higher.

 

[KittySlayer]

Property taxes are assessed on a specific day, not for a 12 month period. So on assessment day you need the appropriate Homestead exemption and Mortgage exemption on file for the applicable property.

Perhaps I'm misunderstanding your statement. I purchased a home previously owned by a corporation (no homestead exemption) on 11/30/2012. Because I was eligible for the exemption, my 2012 taxes paid in 2013 reflected the lower rate. That corporation by the way credited 11 months of taxes at their higher rate during closing and I came out like a bandit on that first year as all 12 months were taxed at the lower rate. Is assessment day considered Dec 31st?

I believe assessment date is March 1st. So everything is evaluated based on ownership on March 1st. If you own the property on March 1st you are liable for ALL the taxes assessed on that date. If you have any exemptions you are eligible for (mortgage/homestead) those have to exist and be on file as of March 1st. Property taxes are not an annual tax they are a single day tax based on the assessment date.

When buying property often times the buyer and seller will prorate the property taxes at closing with each picking up an amount proportionate to their use during a twelve month period. This is solely an agreement between the buyer and seller and as far as the government is concerned whoever owned the property March 1st is liable for the taxes but they government also has a lien on the property that carries forward and can impact the new owner if the taxes are not paid.

One other thing to keep in mind is the timing of assessment, taxation and payment. This is going from memory long ago and you should research or someone else can chime in.
3/1/2012 The assessed value of the property is determined.
3/1/2013 The amount of tax is determined by multiplying the assessed value times the tax rate.
5/10/2013 and 11/10/2013 the payment of the tax is made.

 

[dudley0]

Can you list the various arguments that are acceptable in a protest? I've been unable to locate this info.

I usually get a realtor to run a CMA for me. I deal with realtors a lot so it is easier for me to get them to do it.

I have also used the purchase price as an argument against, but I typically buy bad homes and rehab them so the purchase price is lower than the norm.

Easiest I guess is to take the taxes from a few years and compare them to the newer rate. If you have done nothing to the property and the price has jumped significantly you can sometimes simply ask why.

Don't get me wrong, I am not trying to avoid paying taxes, but sometimes the totals do not make sense and I need to find the reasoning.

 

[Thegeek]

Yup, don't let them bend you over