From the Indianapolis Star:
"Zionsville voters once again will be asked to approve a higher tax on themselves in May as school officials continue to seek a way out of a budget crisis.
On the May 8 ballot is a request to raise the local school tax by 24.44 cents per $100 assessed value -- or about $239 for a $200,000 home.
A similar measure in November 2010 failed as voters rejected a 29.5 cent increase.
The rejection resulted in the layoff of 21 teaching and counseling positions.
Last year, the school district finally got a money-saving ballot measure passed when 74.5 percent approved a plan to refinance debt as a way to generate a few million dollars a year over the next three years. That money will be used to pay for transportation costs and building repairs."
...
The referendum tax rate, if passed, cannot exceed $0.2444 over the three years of the request. The Department of Local Government Finance has an excellent calculator on its website:
https://gateway.ifionline.org/CalculatorsDLGF/RefCalculator.aspx."
http://www.indystar.com/apps/pbcs.dll/article?AID=2012203290323
Thursday, March 29, 2012
Porter CountyTreasurer Plans Timely Mailing of Property Tax Bills
From the Northwest Indiana Times:
"Porter County Treasurer Mike Bucko said tax bills should begin going out in the mail Monday or Tuesday, marking the third year in a row for on-time billing.
Taxpayers should begin receiving the bills later that same week, at which time they will have several options for making payments by the May 10 and Nov. 13 deadlines, he said.
Cash or check payments may be made in person from 8:30 a.m. to 4:30 p.m. Monday through Friday at the county administration center at 155 Indiana Ave. in Valparaiso, Bucko said.
Checks also may be mailed to the Porter County Treasurer, P.O. Box 2150, Valparaiso, IN 46384-2150. Canceled checks will serve as receipts and payments may not be sent to the post office box via Federal Express, UPS or Express Mail, he said.
Taxpayers also may pay their bills online by clicking on the "Pay Your Tax Bill" link on the upper right corner of the county website at porterco.org. The E-check option is free, while credit or debit card payments will be charged a 2.5 percent fee, Bucko said.
Those who have not yet verified their homestead deduction again will receive a pink reminder form with their tax bills.
Porter County Auditor Bob Wichlinski said last week that nearly 26 percent of county property owners with the deduction are at risk of losing the tax break as a result of failing over the past couple of years to verify their eligibility.
At stake is both the $45,000 deduction from the assessed value and a corresponding supplemental deduction aimed at equalizing the net impact, Wichlinski said.
The county has not heard from 11,805 of the 46,252 property owners with homestead deductions, he said."
Read more: http://www.nwitimes.com/news/local/porter/duneland/porter-county-tax-bills-going-out-next-week/article_623b9684-fe10-55e4-9af2-56d3d43ba903.html#ixzz1qYXoqKlE
"Porter County Treasurer Mike Bucko said tax bills should begin going out in the mail Monday or Tuesday, marking the third year in a row for on-time billing.
Taxpayers should begin receiving the bills later that same week, at which time they will have several options for making payments by the May 10 and Nov. 13 deadlines, he said.
Cash or check payments may be made in person from 8:30 a.m. to 4:30 p.m. Monday through Friday at the county administration center at 155 Indiana Ave. in Valparaiso, Bucko said.
Checks also may be mailed to the Porter County Treasurer, P.O. Box 2150, Valparaiso, IN 46384-2150. Canceled checks will serve as receipts and payments may not be sent to the post office box via Federal Express, UPS or Express Mail, he said.
Taxpayers also may pay their bills online by clicking on the "Pay Your Tax Bill" link on the upper right corner of the county website at porterco.org. The E-check option is free, while credit or debit card payments will be charged a 2.5 percent fee, Bucko said.
Those who have not yet verified their homestead deduction again will receive a pink reminder form with their tax bills.
Porter County Auditor Bob Wichlinski said last week that nearly 26 percent of county property owners with the deduction are at risk of losing the tax break as a result of failing over the past couple of years to verify their eligibility.
At stake is both the $45,000 deduction from the assessed value and a corresponding supplemental deduction aimed at equalizing the net impact, Wichlinski said.
The county has not heard from 11,805 of the 46,252 property owners with homestead deductions, he said."
Read more: http://www.nwitimes.com/news/local/porter/duneland/porter-county-tax-bills-going-out-next-week/article_623b9684-fe10-55e4-9af2-56d3d43ba903.html#ixzz1qYXoqKlE
The Indianapolis Business Journal Reports Tax Credits for Business Expansions in Bloomington and Carmel
From the Indianapolis Business Journal:
Bloomington-based Employment Plus Inc., a staffing, recruiting and human resources provider, announced on Wednesday morning that it plans to add 307 Indiana jobs by 2015 as part of a $1.2 million expansion.
"The company, which has more than 100 locations in 17 states, said the investment will go toward leasing and equipping a 21,400-square-foot facility as its new headquarters in Bloomington. The company moved to the location at 1801 S. Liberty Drive on March 2.
As part of the expansion, Employment Plus also has added branches in Elkhart, Fort Wayne, Goshen and Lafayette.
The company, which has roughly 170 employees at its 20 Indiana locations, already has begun hiring for positions at its headquarters and new branches.
The Indiana Economic Development Corp. said it will provide up to $1.35 million in performance-based tax credits and up to $200,000 in training grants based on the company’s job-creation plans. The city of Bloomington will consider additional property tax abatements."
http://www.ibj.com/bloomington-based-employment-agency-plans-to-add-307-jobs-/PARAMS/article/33492
"Carmel-based enVista LLC, an enterprise and supply chain consulting services firm, announced on Thursday morning that it plans to add 96 jobs by 2016 as part of a $1.2 million expansion.
The company said the investment will go toward expanding and renovating an additional 10,000 square feet of office space at its current headquarters at 11711 N. Meridian St.
enVista has 62 employees and has begun hiring for information technology, engineering, accounting and human resources positions.
The Indiana Economic Development Corp. said it will provide enVista up to $1 million in performance-based tax credits and up to $80,000 in training grants based on the company’s job-creation plans."
http://www.ibj.com/carmel-consulting-firm-plans-to-expand--add-96-jobs/PARAMS/article/33535
Bloomington-based Employment Plus Inc., a staffing, recruiting and human resources provider, announced on Wednesday morning that it plans to add 307 Indiana jobs by 2015 as part of a $1.2 million expansion.
"The company, which has more than 100 locations in 17 states, said the investment will go toward leasing and equipping a 21,400-square-foot facility as its new headquarters in Bloomington. The company moved to the location at 1801 S. Liberty Drive on March 2.
As part of the expansion, Employment Plus also has added branches in Elkhart, Fort Wayne, Goshen and Lafayette.
The company, which has roughly 170 employees at its 20 Indiana locations, already has begun hiring for positions at its headquarters and new branches.
The Indiana Economic Development Corp. said it will provide up to $1.35 million in performance-based tax credits and up to $200,000 in training grants based on the company’s job-creation plans. The city of Bloomington will consider additional property tax abatements."
http://www.ibj.com/bloomington-based-employment-agency-plans-to-add-307-jobs-/PARAMS/article/33492
"Carmel-based enVista LLC, an enterprise and supply chain consulting services firm, announced on Thursday morning that it plans to add 96 jobs by 2016 as part of a $1.2 million expansion.
The company said the investment will go toward expanding and renovating an additional 10,000 square feet of office space at its current headquarters at 11711 N. Meridian St.
enVista has 62 employees and has begun hiring for information technology, engineering, accounting and human resources positions.
The Indiana Economic Development Corp. said it will provide enVista up to $1 million in performance-based tax credits and up to $80,000 in training grants based on the company’s job-creation plans."
http://www.ibj.com/carmel-consulting-firm-plans-to-expand--add-96-jobs/PARAMS/article/33535
Wednesday, March 28, 2012
Revenue Issues Guidance on Sales Tax for Colleges and Universities
"Apart from technical, non-substantive changes,
this version of the bulletin has been changed from the previous version to
include separate treatment for colleges and universities that operate as
nonprofit organizations and those that operate as governmental agencies."
http://www.in.gov/legislative/iac/20120229-IR-045120092NRA.xml.pdf
http://www.in.gov/legislative/iac/20120229-IR-045120092NRA.xml.pdf
$14.5 Million Budget Certified for Clark County
From the News and Tribune:
"Indiana’s Department of Local Government Finance returned Clark County’s certified budget order recently, matching the $14.5 million figure submitted by the Clark County Council.
There were a few minor changes, which included an alteration in the bond debt rate, made to the preliminary budget — called a 1782 notice — sent to the county earlier in the month.
Despite the county receiving the full amount it approved in October — down from the $20.7 million requested from various department heads — the expectation is that its spending will be at a minimum.
Outstanding expenses
In 2011, the DLGF returned a certified budget amount of $11.8 million to the county. Unable to cover expenses on the amount returned, the county was mandated to pay for court and the sheriff’s department operations, which added $3.2 million to the operational funds. Between the certified budget order and the mandates, the county operated off of $15 million in 2011, $500,000 more than what was approved this year.
Clark County Councilman Chuck Moore said he would not be surprised if the county had to issue another mandate this year to cover expenses.
“I doubt that it’s possible to operate off that $14.5 million,” he said. “I don’t feel bad about doing a mandate.”
Clark County Councilman Brian Lenfert said expenses that don’t fit within the $14.5 million budget include costs for county employee health insurance, jail operations, the Clark County prosecutor’s office, juvenile detention and the county’s building authority.
“There’s about $3 million additional expenses the county needs to fund,” he said.
Portions of the jail operating costs are likely to be covered by Local Option Income Tax funds and Department of Corrections funds, but will still leave about a $600,000 shortfall, Lenfert said. In addition, the county’s Economic Development Income Tax may be used to cover a portion of the Building Authority’s anticipated $860,000 in expenses, as well as other county expenses.
If there is a shortfall, Moore said he doesn’t think the county will have to mandate for the same amount it did last year.
“I think we can get by with one or the other,” he said.
Mandates again?
According to the certified budget order, the county was able to tax for $3.2 million associated with the two mandates issued by the county council to cover expenses for the Clark County Courts and Clark County Sheriff’s Department.
The bond debt rate related to the mandates was incorrect on the 1782 report. The amount included in the notice totaled only $1.18 million at a certified rate of 3 cents per $100 of assessed value. The amount approved on the certified budget allowed the county to levy for $3.2 million at a rate of 8 cents per $100 of assessed value.
The impact to a homeowner was an increase on their total county taxes — based on a home valued at $100,000 — of about $82. The total county tax rate for a resident is more than 35 cents per $100 of assessed value. For a $100,000 home, the county tax alone totals about $357. Without the mandate, it would total about $275.
Moore gave an estimate — if the mandate were needed — that it would be closer to $1.6 million.
Lenfert said the county needs about $18 million to cover all the county’s expenses. By adding together EDIT, LOIT, Riverboat funds and the county’s general fund, he said the county expects to receive about $17.6 million.
He added the $1.7 million surplus at the end of 2011 will do little to help cover expenses. In addition to going toward the aforementioned outstanding expenses, more than $200,000 has already been spent in encumbrances from 2011, $80,000 has gone to the prosecutor’s office and more than $300,000 is being reserved to pay back those who hit the property tax caps.
Who is hitting the caps
According to Micah Vincent, general counsel for the Department of Local Government Finance, last year about 27 percent of the parcels in the county hit the circuit breaker tax cap.
“I’m sure there’ll be more people that hit the cap [this year],” Lenfert said.
Of the surplus funding, he said the council is estimating a return $350,000 in tax caps.
“We’ve got to see what the circuit breakers are going to do to us,” Moore said.
But he added the DLGF has given the council conflicting reports in the past on how many residents are reaching the 1 percent tax cap.
According to the information provided by Vincent, in 2010, 1,465 residential parcels and 11,252 total parcels, or 19.6 percent, received a credit. Last year the number rose to 3,905 residential parcels and 15,583 total parcels, or 27.1 percent, that hit the tax credit."
http://newsandtribune.com/business/x1450996796/Clark-County-gets-14-5M
"Indiana’s Department of Local Government Finance returned Clark County’s certified budget order recently, matching the $14.5 million figure submitted by the Clark County Council.
There were a few minor changes, which included an alteration in the bond debt rate, made to the preliminary budget — called a 1782 notice — sent to the county earlier in the month.
Despite the county receiving the full amount it approved in October — down from the $20.7 million requested from various department heads — the expectation is that its spending will be at a minimum.
Outstanding expenses
In 2011, the DLGF returned a certified budget amount of $11.8 million to the county. Unable to cover expenses on the amount returned, the county was mandated to pay for court and the sheriff’s department operations, which added $3.2 million to the operational funds. Between the certified budget order and the mandates, the county operated off of $15 million in 2011, $500,000 more than what was approved this year.
Clark County Councilman Chuck Moore said he would not be surprised if the county had to issue another mandate this year to cover expenses.
“I doubt that it’s possible to operate off that $14.5 million,” he said. “I don’t feel bad about doing a mandate.”
Clark County Councilman Brian Lenfert said expenses that don’t fit within the $14.5 million budget include costs for county employee health insurance, jail operations, the Clark County prosecutor’s office, juvenile detention and the county’s building authority.
“There’s about $3 million additional expenses the county needs to fund,” he said.
Portions of the jail operating costs are likely to be covered by Local Option Income Tax funds and Department of Corrections funds, but will still leave about a $600,000 shortfall, Lenfert said. In addition, the county’s Economic Development Income Tax may be used to cover a portion of the Building Authority’s anticipated $860,000 in expenses, as well as other county expenses.
If there is a shortfall, Moore said he doesn’t think the county will have to mandate for the same amount it did last year.
“I think we can get by with one or the other,” he said.
Mandates again?
According to the certified budget order, the county was able to tax for $3.2 million associated with the two mandates issued by the county council to cover expenses for the Clark County Courts and Clark County Sheriff’s Department.
The bond debt rate related to the mandates was incorrect on the 1782 report. The amount included in the notice totaled only $1.18 million at a certified rate of 3 cents per $100 of assessed value. The amount approved on the certified budget allowed the county to levy for $3.2 million at a rate of 8 cents per $100 of assessed value.
The impact to a homeowner was an increase on their total county taxes — based on a home valued at $100,000 — of about $82. The total county tax rate for a resident is more than 35 cents per $100 of assessed value. For a $100,000 home, the county tax alone totals about $357. Without the mandate, it would total about $275.
Moore gave an estimate — if the mandate were needed — that it would be closer to $1.6 million.
Lenfert said the county needs about $18 million to cover all the county’s expenses. By adding together EDIT, LOIT, Riverboat funds and the county’s general fund, he said the county expects to receive about $17.6 million.
He added the $1.7 million surplus at the end of 2011 will do little to help cover expenses. In addition to going toward the aforementioned outstanding expenses, more than $200,000 has already been spent in encumbrances from 2011, $80,000 has gone to the prosecutor’s office and more than $300,000 is being reserved to pay back those who hit the property tax caps.
Who is hitting the caps
According to Micah Vincent, general counsel for the Department of Local Government Finance, last year about 27 percent of the parcels in the county hit the circuit breaker tax cap.
“I’m sure there’ll be more people that hit the cap [this year],” Lenfert said.
Of the surplus funding, he said the council is estimating a return $350,000 in tax caps.
“We’ve got to see what the circuit breakers are going to do to us,” Moore said.
But he added the DLGF has given the council conflicting reports in the past on how many residents are reaching the 1 percent tax cap.
According to the information provided by Vincent, in 2010, 1,465 residential parcels and 11,252 total parcels, or 19.6 percent, received a credit. Last year the number rose to 3,905 residential parcels and 15,583 total parcels, or 27.1 percent, that hit the tax credit."
http://newsandtribune.com/business/x1450996796/Clark-County-gets-14-5M
Tax Caps Save Allen County Property Owners $35 Million
From the Fort Wayne News Sentinel:
"State-imposed caps will save Allen County property owners about $35.26 million this year – a number that will force further belt-tightening by officials but won't eliminate the possibility of tax increases, especially for owners of farmland.
Under legislation passed in 2006 and later added to the Indiana Constitution, residential property taxes are capped at 1 percent of the home's assessed value, at 2 percent on rental properties, and 3 percent on agricultural and commercial. As a result, Allen County Auditor Tera Klutz said, the city of Fort Wayne will collect about $13.58 million less than it otherwise would have. Allen County government will “lose” about $5.99 million, and the Fort Wayne Community Schools $5.22 million.
Taxes paid by many homeowners have already reached the cap, meaning their taxes cannot increase unless their property's assessed value also increases. But in areas where taxes have not reached the maximum, or where property values have dipped because of the recession, tax will be lower. This year's net tax rates have dipped by 7 percent in Eel River and Perry townships and Huntertown, for example, with rate increases of about 2 percent in many areas of Fort Wayne and in some areas served by the Southwest Allen County Schools, where voters approved spending increases that exceeded the cap. Taxes on rental and business properties are also expected to be flat this year.
Farmland is another story, according to Chief Deputy Auditor Nick Jordan.
Agricultural land has historically been assessed at about one-third of market value, but this year the base value was increased by to $1,500 per acre – meaning owners could see their tax bills increase by 16 percent.
Monroeville residents could also see larger-than-normal increases, Klutz said, in part because of the decreased value of the CME Corp.'s property. Taxes there could go up by 6 percent.
All told, the various governments operating in Allen County expect to operate on about $346.79 million in property taxes this year, with schools receiving 35 percent, cities and towns 33 percent, the county 19 percent, and the Allen County Public Library 8 percent, with other units receiving less.
Coupled with the recession's effect on sales and income taxes, the loss of more than $35 million in circuit-breaker funds -- that's $270,775 more than last year – could force governments to curb spending or tap cash reserves."
http://www.news-sentinel.com/apps/pbcs.dll/article?AID=/20120327/NEWS/120329640
"State-imposed caps will save Allen County property owners about $35.26 million this year – a number that will force further belt-tightening by officials but won't eliminate the possibility of tax increases, especially for owners of farmland.
Under legislation passed in 2006 and later added to the Indiana Constitution, residential property taxes are capped at 1 percent of the home's assessed value, at 2 percent on rental properties, and 3 percent on agricultural and commercial. As a result, Allen County Auditor Tera Klutz said, the city of Fort Wayne will collect about $13.58 million less than it otherwise would have. Allen County government will “lose” about $5.99 million, and the Fort Wayne Community Schools $5.22 million.
Taxes paid by many homeowners have already reached the cap, meaning their taxes cannot increase unless their property's assessed value also increases. But in areas where taxes have not reached the maximum, or where property values have dipped because of the recession, tax will be lower. This year's net tax rates have dipped by 7 percent in Eel River and Perry townships and Huntertown, for example, with rate increases of about 2 percent in many areas of Fort Wayne and in some areas served by the Southwest Allen County Schools, where voters approved spending increases that exceeded the cap. Taxes on rental and business properties are also expected to be flat this year.
Farmland is another story, according to Chief Deputy Auditor Nick Jordan.
Agricultural land has historically been assessed at about one-third of market value, but this year the base value was increased by to $1,500 per acre – meaning owners could see their tax bills increase by 16 percent.
Monroeville residents could also see larger-than-normal increases, Klutz said, in part because of the decreased value of the CME Corp.'s property. Taxes there could go up by 6 percent.
All told, the various governments operating in Allen County expect to operate on about $346.79 million in property taxes this year, with schools receiving 35 percent, cities and towns 33 percent, the county 19 percent, and the Allen County Public Library 8 percent, with other units receiving less.
Coupled with the recession's effect on sales and income taxes, the loss of more than $35 million in circuit-breaker funds -- that's $270,775 more than last year – could force governments to curb spending or tap cash reserves."
http://www.news-sentinel.com/apps/pbcs.dll/article?AID=/20120327/NEWS/120329640
Tuesday, March 27, 2012
While Taxpayer Owed UST Fees for Sixteen Years, Revenue Finds Recovery of Most Barred by Three Year Statute of Limitations
Taxpayer operates a marina. The marina sells gasoline to its
patrons. The gasoline is contained in an underground storage tank.
…
…
Because Taxpayer's tank was divided into three compartments, the IDEM concluded
that Taxpayer should have paid three fees each year. The Department issued proposed
assessments June 23, 2010, assessing two additional fee amounts for each of the
years 1994 through 2009.
…
Taxpayer maintains that IDEM and the Department belatedly and
improperly assessed the additional fees.
Taxpayer states that it had been told by IDEM personnel that it was only
required to remit one fee each year.
IC §13-23-12-1 imposes a fee on underground storage tanks.
Although the IDEM regulates underground storage tanks for the State, IC §
13-23-12-4 mandates that the Department of Revenue collect and deposit the underground
storage tank fees.
…
Because the fee is collected by the Department of Revenue
(Department) and is a listed tax under IC § 6-8.1-1-1, the assessment of the
fees is governed by IC § 6-8.1-5-2(a) which states: Except as otherwise provided in this section,
the department may not issue a proposed assessment under section 1 of this
chapter more than three (3) years after the latest of the date the return is
filed, or either of the following: (1)
The due date of the return. (2) In the
case of a return filed for the state gross retail or use tax, the gasoline tax,
the special fuel tax, the motor carrier fuel tax, the oil inspection fee, or
the petroleum severance tax, the end of the calendar year which contains the
taxable period for which the return is filed.
The three-year statute of limitations applies in the absence of
proof of fraud by clear and convincing evidence or a taxpayer's failure to file
a return. See IC § 6-8.1-5-2(f).
Although IC § 13-23-12-1(c) plainly states that Taxpayer should
have been paying the fee on three tanks, there is no "clear and convincing
evidence" that Taxpayer intended to perpetrate a fraud when it reported
that it owed one underground tank and that it paid one single fee each year.
Therefore, the fees assessed for 1994, 1995, 1996, 1997, 1998, 1999, 2000,
2001, 2002, 2003, 2004, 2005, and 2006, are barred by the three-year statute of
limitations because the fees due for 2006 were due at the end of the calendar
year and because Taxpayer filed returns for each of these years. Nonetheless,
because the proposed assessments were issued June 23, 2010, the Department was
justified in issuing proposed assessments for 2009, 2008, and 2007. (It should
be noted that if the situation were reversed – Taxpayer had for sixteen years
been paying fees for three tanks when it in fact owned one – Taxpayer would be
similarly barred from requesting a refund of the excess fees by the three-year
statute of limitations under IC § 6-8.1-9-1(a)).
However, Taxpayer is admonished that if all the environmental fees
are not paid in full, Taxpayer or any future owner will not be eligible for
full payments from the Excess Liability Trust Fund (ELTF) in the event that there
is a gasoline spill or other environmental problem resulting from Taxpayer's
underground storage tanks.
River Ridge Development Authority Approves Property Tax Abatement for Proposed Amazon Distribution Center
From the Indianapolis Business Journal:
Amazon.com Inc. announced on Tuesday morning that it will open a new distribution center in southern Indiana and create up to 1,050 jobs by 2015 as part of a $150 million expansion.
...
Indiana Economic Development Corp. said it will provide Amazon up to $2 million in performance-based tax credits and up to $300,000 in training grants based on the company's job-creation plans.
River Ridge Development Authority also has approved additional property-tax abatements and will support infrastructure improvements.
In January, state officials reached an agreement with Amazon.com to have the online retailer begin collecting Indiana’s 7-percent sales tax from customers in the state in 2014.
The deal could lead to Indiana bringing in at least $20 million more in annual sales tax revenue.
http://www.ibj.com/amazon-plans-another-indiana-warehouse--1-000-jobs/PARAMS/article/33476
Amazon.com Inc. announced on Tuesday morning that it will open a new distribution center in southern Indiana and create up to 1,050 jobs by 2015 as part of a $150 million expansion.
...
Indiana Economic Development Corp. said it will provide Amazon up to $2 million in performance-based tax credits and up to $300,000 in training grants based on the company's job-creation plans.
River Ridge Development Authority also has approved additional property-tax abatements and will support infrastructure improvements.
In January, state officials reached an agreement with Amazon.com to have the online retailer begin collecting Indiana’s 7-percent sales tax from customers in the state in 2014.
The deal could lead to Indiana bringing in at least $20 million more in annual sales tax revenue.
http://www.ibj.com/amazon-plans-another-indiana-warehouse--1-000-jobs/PARAMS/article/33476
Linton Redevelopment LLC Awarded $6.5 Million in Rental Housing Tax Credits
From the Terre Haute Tribune Star:
Linton Mayor John Wilkes announced this week that Indiana Housing and Community Development Authority recently awarded Cine LP, a general partner of Linton Redevelopment LLC, more than $6.5 million in rental housing tax credits to help develop the Cine Senior Apartments. The tax credit award process was exceptionally competitive this year with only 14 projects receiving tax credit awards out of more than 60 applications. Cine LP’s proposal actually received the second-highest score of all the 2012 plans submitted.
“This is a very exciting time for Linton,” Jeff Doris, president, Linton Redevelopment stated in a news release issued Wednesday. “Developing the Cine Senior Apartments helps further our overall mission of revitalizing downtown to provide updated housing options and retail locations for Greene County residents. This is just the beginning of what’s to come for Linton.”
The proposed 41-unit Cine Senior Apartments will be at 155 N. Main St. in downtown Linton. This is the same block the historic Cine Theater called home from 1938 to 1982. The development will include studio, one- and two-bedroom apartments as well as an on-site leasing office and a variety of community spaces. Cine LP plans to restore the property’s Main Street façade so new development maintains the charm of the original building’s storefront exterior.
“The Cine Senior Apartments provides a new housing choice for Greene County seniors with low and moderate incomes,” said Stan Palma, tax consultant and architect, Cine LP.
Cine LP plans to break ground on the Cine Senior Apartments this summer.
http://tribstar.com/business/x684073213/Tax-credits-to-help-develop-senior-apartments
Linton Mayor John Wilkes announced this week that Indiana Housing and Community Development Authority recently awarded Cine LP, a general partner of Linton Redevelopment LLC, more than $6.5 million in rental housing tax credits to help develop the Cine Senior Apartments. The tax credit award process was exceptionally competitive this year with only 14 projects receiving tax credit awards out of more than 60 applications. Cine LP’s proposal actually received the second-highest score of all the 2012 plans submitted.
“This is a very exciting time for Linton,” Jeff Doris, president, Linton Redevelopment stated in a news release issued Wednesday. “Developing the Cine Senior Apartments helps further our overall mission of revitalizing downtown to provide updated housing options and retail locations for Greene County residents. This is just the beginning of what’s to come for Linton.”
The proposed 41-unit Cine Senior Apartments will be at 155 N. Main St. in downtown Linton. This is the same block the historic Cine Theater called home from 1938 to 1982. The development will include studio, one- and two-bedroom apartments as well as an on-site leasing office and a variety of community spaces. Cine LP plans to restore the property’s Main Street façade so new development maintains the charm of the original building’s storefront exterior.
“The Cine Senior Apartments provides a new housing choice for Greene County seniors with low and moderate incomes,” said Stan Palma, tax consultant and architect, Cine LP.
Cine LP plans to break ground on the Cine Senior Apartments this summer.
http://tribstar.com/business/x684073213/Tax-credits-to-help-develop-senior-apartments
Barton Tower Project Moves Forward in Indianapolis with Approval to Sell Tax Credits
From the Indianapolis Business Journal:
The redevelopment of a key stretch of Massachusetts Avenue is expected to commence in the fall now that developers have won approval to sell tax credits to finance the project.
A partnership of Flaherty & Collins Properties and Insight Development Corp. earlier this month was awarded rental housing tax credits by the state that will be sold to finance construction of a 61-unit, $11.5 million apartment project at 555 Massachusetts Ave. The project is to include 5,000 square feet of retail space facing Massachusetts.
The site is now green space and parking that wraps around the Barton Tower apartments, a 21-story concrete structure built in 1967 that is operated by the Indianapolis Housing Agency.
http://www.ibj.com/rew-lead-story---template/PARAMS/article/33474
The redevelopment of a key stretch of Massachusetts Avenue is expected to commence in the fall now that developers have won approval to sell tax credits to finance the project.
A partnership of Flaherty & Collins Properties and Insight Development Corp. earlier this month was awarded rental housing tax credits by the state that will be sold to finance construction of a 61-unit, $11.5 million apartment project at 555 Massachusetts Ave. The project is to include 5,000 square feet of retail space facing Massachusetts.
The site is now green space and parking that wraps around the Barton Tower apartments, a 21-story concrete structure built in 1967 that is operated by the Indianapolis Housing Agency.
http://www.ibj.com/rew-lead-story---template/PARAMS/article/33474
StateImpact Indiana Reports the "Good News and Bad News" about Bill Outlawing Busing Fees
From StateImpact Indiana:
The Indiana General Assembly outlawed Franklin Township’s busing fees this session, but also passed a law providing relief for districts who lost more than 20 percent of their property tax revenues. 45 districts that cumulatively lost $136.9 million to the caps are now eligible to restructure their debt under the new law.
But that’s where we get to the bad news:
http://stateimpact.npr.org/indiana/2012/03/27/the-good-news-bad-news-about-the-end-of-franklin-townships-busing-fees/
The Indiana General Assembly outlawed Franklin Township’s busing fees this session, but also passed a law providing relief for districts who lost more than 20 percent of their property tax revenues. 45 districts that cumulatively lost $136.9 million to the caps are now eligible to restructure their debt under the new law.
But that’s where we get to the bad news:
- Consider Bourke’s refinancing analogy: Refinancing a 15-year loan to a 30-year loan will reduce your loan payments, but not by exactly half. You are, after all, still paying interest over 30 years, not 15. In districts that take advantage of the loan restructuring, taxpayers would ultimately bear that burden.
- In enrollment terms, the damage from the busing fees may already be done for Franklin Township schools. “The school district did not provide for our poorest students,” parent Christine Bischoff, who pulled her children out of Franklin Township schools, told WXIN-TV. “In my opinion the people that sit on the school board have mishandled what happened.”
http://stateimpact.npr.org/indiana/2012/03/27/the-good-news-bad-news-about-the-end-of-franklin-townships-busing-fees/
Monday, March 26, 2012
Department Issues Guidance on Agricultural Land Classification
"The Department provides this memorandum to offer guidance on land types that should be categorized as farmland under 50 IAC 26."
http://www.in.gov/dlgf/files/Revised_110815_-_Wood_Memo_-_Land_Type_Codes_-_Farmland_Memo.pdf
http://www.in.gov/dlgf/files/Revised_110815_-_Wood_Memo_-_Land_Type_Codes_-_Farmland_Memo.pdf
Legislation Delays Assessment Increases Due to Soil Productivity Adjustments
From the Richmond Palladium- Item:
Farm Notes
"The Indiana General Assembly approved two changes sought by the Indiana Farm Bureau in its 2012 session.
Elimination of the state inheritance tax and delaying the use of new soil productivity adjustments for property taxes provide immediate, tangible benefits for all Hoosier farm families, IFB President Don Villwock said. The property tax changes are estimated to save Indiana farmers about $57.4 million next year.
The application of new soil productivity factors that were announced by the Department of Local Government Finance in early February will be delayed. The productivity factors, used to adjust the base assessed value of farmland, have been consistent for more than a quarter century, Villwock said. The new factors would have significantly increased the assessed value of farmland in the state and the property taxes paid on that land, he said.
Senate Enrolled Act 293 will phase out Indiana's inheritance tax over a nine-year period beginning in 2013. The act also increases from $100,000 to $250,000 the amount that may be inherited by the deceased's children and their children's surviving spouses before the inheritance tax is assessed. The increased exemptions will be in effect for the estates of anyone who died on or after Jan. 1, 2012."
http://www.pal-item.com/apps/pbcs.dll/article?AID=2012203250315
Farm Notes
"The Indiana General Assembly approved two changes sought by the Indiana Farm Bureau in its 2012 session.
Elimination of the state inheritance tax and delaying the use of new soil productivity adjustments for property taxes provide immediate, tangible benefits for all Hoosier farm families, IFB President Don Villwock said. The property tax changes are estimated to save Indiana farmers about $57.4 million next year.
The application of new soil productivity factors that were announced by the Department of Local Government Finance in early February will be delayed. The productivity factors, used to adjust the base assessed value of farmland, have been consistent for more than a quarter century, Villwock said. The new factors would have significantly increased the assessed value of farmland in the state and the property taxes paid on that land, he said.
Senate Enrolled Act 293 will phase out Indiana's inheritance tax over a nine-year period beginning in 2013. The act also increases from $100,000 to $250,000 the amount that may be inherited by the deceased's children and their children's surviving spouses before the inheritance tax is assessed. The increased exemptions will be in effect for the estates of anyone who died on or after Jan. 1, 2012."
http://www.pal-item.com/apps/pbcs.dll/article?AID=2012203250315
Indianapolis Star Editorial Challenges Wisdom of Inheritance Tax Phase-out
Editorial by Dan Carpenter from the Indianapolis Star:
"There are many reasons that a family business might not be passed down to the kids upon its owner's death; but the Indiana inheritance tax is probably not one of them.
The phase-out of the tax will cost a cash-strapped, budget-slashing state more than $1 billion over the next decade, by government estimates; while the main selling point for the change in law defies logic and mathematics.
"Never again, we hope, will a farm or a small business in our state have to change hands just because someone can't afford the inheritance tax," Gov. Mitch Daniels said in signing Senate Bill 293, a jewel of the Republican agenda which many Democrats were loath to oppose.
The "death tax," after all. How could the revenue raiders be allowed to continue robbing graves and driving businesses into dissolution and Hoosiers to Florida?
Actually, there's an easy answer: It's not happening.
At least, not on any significant scale. It's political lore, unsupported by data and, regrettably, pretty much unchallenged by the media.
It reminds one of the GOP claims that property taxes were evicting senior citizens from their homes, and employers were avoiding Indiana just because it lacked a "right to work" law. The death tax is one more good scary story.
Let's look at numbers.
Say the proprietor of a corner bookstore passes on, leaving an inheritance worth $250,000. His widow pays no tax at all. What if it goes to his two kids? Each gets a $100,000 exemption -- that's $100,000 -- off the top, and the remaining $50,000 is taxed at $250 plus 2 percent of its value over $25,000.
That's enough to cast off a business? Wow. Give me such a deal on my income taxes. It's far more likely the place would be crushed by Amazon, which continues to go free from collecting sales tax on its Indiana mail-order trade.
"Even with the existing system, it really wasn't that onerous a tax," says Erik Gonzalez, staff fiscal specialist for the ranking Democrat on the House Ways and Means Committee, Rep. William Crawford, who fought the bill. "We don't see it impacting small business. The real beneficiaries will be the super-wealthy."
It figures. Given the $100,000 exemption for sons and daughters and the 100 percent exemption for surviving spouses, many Hoosiers never even have to report inheritances, the Indiana Department of Revenue notes. It takes a rich family by any measure to see the kind of bill that would shock a middle-income family. Yet it's supposed to be for the little guy's sake that it's all going away. The consequence is one more dammed-up revenue stream for a state that slashes budgets for the poor. Without a replacement.
"We made over $1 billion in cuts for social services and education because of budget constraints," Gonzalez says, "And yet we have this gratuitous elimination, over time, of some $160 million a year. We have unmet needs."
For some constituencies, the 2012 legislature left few needs, or at least few wants, unmet. The Indiana Chamber of Commerce, in praising SB 293 on its website, describes the inheritance tax exemption as "currently very low," without mentioning the sum. And here we thought our leaders cared about folks who consider 100 grand real money."
http://www.indystar.com/apps/pbcs.dll/article?AID=2012203250304
"There are many reasons that a family business might not be passed down to the kids upon its owner's death; but the Indiana inheritance tax is probably not one of them.
The phase-out of the tax will cost a cash-strapped, budget-slashing state more than $1 billion over the next decade, by government estimates; while the main selling point for the change in law defies logic and mathematics.
"Never again, we hope, will a farm or a small business in our state have to change hands just because someone can't afford the inheritance tax," Gov. Mitch Daniels said in signing Senate Bill 293, a jewel of the Republican agenda which many Democrats were loath to oppose.
The "death tax," after all. How could the revenue raiders be allowed to continue robbing graves and driving businesses into dissolution and Hoosiers to Florida?
Actually, there's an easy answer: It's not happening.
At least, not on any significant scale. It's political lore, unsupported by data and, regrettably, pretty much unchallenged by the media.
It reminds one of the GOP claims that property taxes were evicting senior citizens from their homes, and employers were avoiding Indiana just because it lacked a "right to work" law. The death tax is one more good scary story.
Let's look at numbers.
Say the proprietor of a corner bookstore passes on, leaving an inheritance worth $250,000. His widow pays no tax at all. What if it goes to his two kids? Each gets a $100,000 exemption -- that's $100,000 -- off the top, and the remaining $50,000 is taxed at $250 plus 2 percent of its value over $25,000.
That's enough to cast off a business? Wow. Give me such a deal on my income taxes. It's far more likely the place would be crushed by Amazon, which continues to go free from collecting sales tax on its Indiana mail-order trade.
"Even with the existing system, it really wasn't that onerous a tax," says Erik Gonzalez, staff fiscal specialist for the ranking Democrat on the House Ways and Means Committee, Rep. William Crawford, who fought the bill. "We don't see it impacting small business. The real beneficiaries will be the super-wealthy."
It figures. Given the $100,000 exemption for sons and daughters and the 100 percent exemption for surviving spouses, many Hoosiers never even have to report inheritances, the Indiana Department of Revenue notes. It takes a rich family by any measure to see the kind of bill that would shock a middle-income family. Yet it's supposed to be for the little guy's sake that it's all going away. The consequence is one more dammed-up revenue stream for a state that slashes budgets for the poor. Without a replacement.
"We made over $1 billion in cuts for social services and education because of budget constraints," Gonzalez says, "And yet we have this gratuitous elimination, over time, of some $160 million a year. We have unmet needs."
For some constituencies, the 2012 legislature left few needs, or at least few wants, unmet. The Indiana Chamber of Commerce, in praising SB 293 on its website, describes the inheritance tax exemption as "currently very low," without mentioning the sum. And here we thought our leaders cared about folks who consider 100 grand real money."
http://www.indystar.com/apps/pbcs.dll/article?AID=2012203250304
New Albany School Corp Anticipates Lower Tax Bills
From the News and Tribune:
"The chief business officer for New Albany-Floyd County Consolidated School Corp. has a message for the county’s taxpayers: If their taxes go up, it’s not the fault of the district.
Fred McWhorter said according to his data from the Indiana Department of Local Government finance, the tax rate from the schools is expected to drop by about 10.4 percent — or about 12 cents for every $100 of assessed valuation on property taxes — at the district’s board of trustees meeting Tuesday night.
“Overall, I think it’s going to be good for the community,” McWhorter said. “We really are cognizant of how we impact the community as a whole as well.”
Trish Byrd, Floyd County assessor, said the final numbers on tax rates from the state have not come in to her office yet, but she expects them by the end of this month or early in April.
McWhorter said the reason for the expected decrease in tax rates from the district come from three sources — the payment of debt, a decrease in the district’s capital projects fund as well as its bus replacement fund.
According to a presentation Monday night, the district got $3,790,725 less in their capital projects fund — which goes to building and maintenance projects — than they initially advertised. McWhorter said that came from a change from a lawsuit from a school district against the DLGF for incorrectly calculating the CPF fund for districts in the past.
They also got $1,909,832 less in their bus replacement fund. McWhorter said that change was due to a cap placed on bus replacement funds by the state legislature.
But he said the district could have sought a $500,000 loan from the state to make up some of the difference in their CPF. He said they decided against that to help the taxpayers instead.
With all of that factored in, he said this has been the lowest tax rate from NA-FC schools since 2009."
http://newsandtribune.com/floydcounty/x1940317099/NA-FC-tax-burden-could-be-lower-for-taxpayers
"The chief business officer for New Albany-Floyd County Consolidated School Corp. has a message for the county’s taxpayers: If their taxes go up, it’s not the fault of the district.
Fred McWhorter said according to his data from the Indiana Department of Local Government finance, the tax rate from the schools is expected to drop by about 10.4 percent — or about 12 cents for every $100 of assessed valuation on property taxes — at the district’s board of trustees meeting Tuesday night.
“Overall, I think it’s going to be good for the community,” McWhorter said. “We really are cognizant of how we impact the community as a whole as well.”
Trish Byrd, Floyd County assessor, said the final numbers on tax rates from the state have not come in to her office yet, but she expects them by the end of this month or early in April.
McWhorter said the reason for the expected decrease in tax rates from the district come from three sources — the payment of debt, a decrease in the district’s capital projects fund as well as its bus replacement fund.
According to a presentation Monday night, the district got $3,790,725 less in their capital projects fund — which goes to building and maintenance projects — than they initially advertised. McWhorter said that came from a change from a lawsuit from a school district against the DLGF for incorrectly calculating the CPF fund for districts in the past.
They also got $1,909,832 less in their bus replacement fund. McWhorter said that change was due to a cap placed on bus replacement funds by the state legislature.
But he said the district could have sought a $500,000 loan from the state to make up some of the difference in their CPF. He said they decided against that to help the taxpayers instead.
With all of that factored in, he said this has been the lowest tax rate from NA-FC schools since 2009."
http://newsandtribune.com/floydcounty/x1940317099/NA-FC-tax-burden-could-be-lower-for-taxpayers
Sunday, March 25, 2012
Supreme Court Reverses Trial Court Decision Setting Aside Tax Deed
“The Auditor was presented with
a situation in which the Property was unimproved, bare land, and the owner
could not be found. The notices mailed to the address provided by Sawmill were
returned with no information as to a new forwarding address. And a search of
the chain of title, the records of the Indiana Secretary of State, and the
phonebook could not locate a new or alternative address. In fact, the search
returned no results, other than the Property, for the entity Saw Creek. Valley
Title thus provided the Auditor with the known addresses for the previous owner
of record. Concluding that Saw Creek may have existed in name only for the purpose
of holding the Property for Cloverleaf, the Auditor then sent notice to Cloverleaf as well as
continuing the attempt to send notice to Sawmill.
Sawmill contends that the
additional steps taken by the Auditor were inadequate and that the only
reasonable step was to post notice on the Property. In this regard, Sawmill
argues that because of the misnomer on the documents relating to the Property,
there was only one method of providing notice that was reasonable when the
mailed notice was returned. Or, in other words, that because the named owner of
record did not exist and was thus untraceable, that the Auditor must post
notice on the Property. We cannot agree for two reasons.
First, under the unique
circumstances of this case, posting notice on the property was not a reasonable
or practicable step for the Auditor to take, and in such circumstances due
process does not require the government to do more. See Flowers, 547
U.S. at 234, 126 S. Ct. at 1718, 164 L. Ed. 2d at 430–31 ("[I]f there were
no reasonable additional steps the government could have taken upon return of
the unclaimed notice letter, it cannot be faulted for doing nothing.").
The Auditor knew, from reviewing the tax records, that the Property was
unimproved, bare land, thus making posting a suspect form of notice. See Greene,
456 U.S. at 452–53, 102 S. Ct. at 1879, 72 L. Ed. 2d at 257 (noting that the
efficacy of posting notice is dependent upon the nature of the property
posted).
…
Second, the notices for
approximately 1,800 properties were returned to the Auditor in 2005 alone. The
burden of posting notice on that many properties is significant. In fact, the Auditor testified that it is not done
because it is cost prohibitive: "Going to each of those properties,
mapping them out, and getting the signage for each of those properties wouldn’t
be really possible time wise or financially." Tr. at 94. Were we to accept
Sawmill's contention that notice must be posted on the property when the owner
of record cannot be located through any reasonable means, the Auditor would be
placed in an untenable position. This we cannot do.
For the foregoing reasons the
judgment of the trial court is reversed. Sawmill's motion to set aside the tax
deed is denied."
East Chicago Looks to Privatize EMT Service to Reduce Budget Deficit
From the Northwest Indiana Times:
"Residents soon may see a privatized ambulance service responding to their medical emergencies as the city looks to deflate a bloated budget.
Mayor Anthony Copeland on Friday issued an executive order reducing staff and recommending outsourcing the Emergency Medical Services Department.
Copeland said in coming weeks the Board of Works will be reviewing proposals from outside EMS professionals, first to determine what is in the city's best interest. Outsourcing EMS could reduce a $3.7 million annual deficit by as much as $1.2 million, the mayor said.
"We are asking the (City Council) first to abolish the department. Only the council has that ability," Copeland said. "If the council doesn't do that, then we can zero-out the budget, doing it that way."
Copeland said council members are to meet Monday to discuss and possibly vote on the plan.
Copeland said one of the biggest issues bogging down the budget is that the city's payroll is too large to sustain. He said the city and the East Chicago Sanitary District employ 650 full-time workers, near the number of municipal employees in Hammond, though its neighboring city has more than twice its population.
Copeland said 14 full-time and two part-time employees were terminated Friday, during what he's calling the first phase of a continuing effort to make the city more solvent.
The mayor said additional layoffs are on the horizon.
Copeland said tax collections in the city are down to about 70 percent and when combined with losses from the property tax cap legislation, the city is dealing with a $15 million annual loss of revenue compared to just a few years ago."
Read more: http://www.nwitimes.com/news/local/lake/east-chicago/e-c-looking-to-outsource-ems-department/article_63c7989e-8137-5bf5-824a-3e6c0901c3fc.html#ixzz1q8aTb34c
"Residents soon may see a privatized ambulance service responding to their medical emergencies as the city looks to deflate a bloated budget.
Mayor Anthony Copeland on Friday issued an executive order reducing staff and recommending outsourcing the Emergency Medical Services Department.
Copeland said in coming weeks the Board of Works will be reviewing proposals from outside EMS professionals, first to determine what is in the city's best interest. Outsourcing EMS could reduce a $3.7 million annual deficit by as much as $1.2 million, the mayor said.
"We are asking the (City Council) first to abolish the department. Only the council has that ability," Copeland said. "If the council doesn't do that, then we can zero-out the budget, doing it that way."
Copeland said council members are to meet Monday to discuss and possibly vote on the plan.
Copeland said one of the biggest issues bogging down the budget is that the city's payroll is too large to sustain. He said the city and the East Chicago Sanitary District employ 650 full-time workers, near the number of municipal employees in Hammond, though its neighboring city has more than twice its population.
Copeland said 14 full-time and two part-time employees were terminated Friday, during what he's calling the first phase of a continuing effort to make the city more solvent.
The mayor said additional layoffs are on the horizon.
Copeland said tax collections in the city are down to about 70 percent and when combined with losses from the property tax cap legislation, the city is dealing with a $15 million annual loss of revenue compared to just a few years ago."
Read more: http://www.nwitimes.com/news/local/lake/east-chicago/e-c-looking-to-outsource-ems-department/article_63c7989e-8137-5bf5-824a-3e6c0901c3fc.html#ixzz1q8aTb34c
Saturday, March 24, 2012
Shelbyville Approves Tax Abatement for Drilling World
A California-based drill
making business is expanding to Shelbyville.
The Shelbyville Common Council approved in a 7-0 vote at Monday's meeting a tax abatement on $420,500 worth of equipment for Drilling World, which is in the process of moving into the former Stanley Black & Decker building at 860 Elston Drive.
The company was founded in 1985 and has operations in North and South America and Europe.
Shelbyville's location will be the third location that builds tools for shale oil extraction, and will be a Midwest hub for those tools, said Stephen Huddleston, the attorney who represented the company at Monday's council meeting. ...
The Shelbyville Common Council approved in a 7-0 vote at Monday's meeting a tax abatement on $420,500 worth of equipment for Drilling World, which is in the process of moving into the former Stanley Black & Decker building at 860 Elston Drive.
The company was founded in 1985 and has operations in North and South America and Europe.
Shelbyville's location will be the third location that builds tools for shale oil extraction, and will be a Midwest hub for those tools, said Stephen Huddleston, the attorney who represented the company at Monday's council meeting. ...
The council also voted
unanimously to change the rules for the rainy day fund. The council passed a
resolution to eliminate a date by which the rainy day funds must be
transferred.
"From what I understand, the only change is that the ordinance hinders us from making changes after March 1, and there's no state law," council member Jason Brown said.…
"From what I understand, the only change is that the ordinance hinders us from making changes after March 1, and there's no state law," council member Jason Brown said.…
The resolution is a step in shoring up the budget, which will likely require moving funds from the utility fund and possibly Parks and Recreation Department and putting it into the rainy day fund. Then those funds can be moved into the general fund.
The Shelbyville Fire Department asked to move some money around in its department to pay for new tires. The department asked to move about $1,300 from the equipment fund to the tires and tubes fund. The council voted 7-0 to accept the request.
The fire department didn't ask for any new money from the council, but, like other city departments, is faced with a tight budget.
"We're probably going to be needing more money here coming up," Fire Chief Tony Logan said.
http://www.shelbynews.com/articles/2012/03/21/news/doc4f68d11008f73821936467.txt
Legislature Delays Implementation of New Soil Productivity Factors
By Memo dated February 2, 2012:
"The Department of Local Government Finance ("the Department") recently requested and recieved updated Soil Productivity Factors from the Natural Resources Conservation Service of the United States Department of Agriculture ("USDA"). The updated Soil Productivity Factors are to be applied and used as a part of the March 1, 2012, general reassessment.
... The best soil productivity in the state is now approximately 1.66 (changed from 1.28), while the poorest remains .50."
http://www.in.gov/dlgf/files/120202_Soil_Productivity_Factor_Update.pdf
On March 19, 2012, the Governor signed into law SEA 19, which provides as follows:
SECTION 9. IC 6-1.1-4-13 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE FEBRUARY 29, 2012 (RETROACTIVE)]: Sec. 13. (a) In assessing or reassessing land, the land shall be assessed as agricultural land only when it is devoted to agricultural use.
(b) The department of local government finance shall give written notice to each county assessor of:
(1) the availability of the United States Department of Agriculture's soil survey data; and
(2) the appropriate soil productivity factor for each type or classification of soil shown on the United States Department of Agriculture's soil survey map.
All assessing officials and the property tax assessment board of appeals shall use the data in determining the true tax value of agricultural land. However, notwithstanding the availability of new soil productivity factors and the department of local government finance's notice of the appropriate soil productivity factor for each type or classification of soil shown on the United States Department of Agriculture's soil survey map for the March 1, 2012, assessment date, the soil productivity factors used for the March 1, 2011, assessment date shall be used for the March 1, 2012, assessment date. New soil productivity factors shall be used for assessment dates occurring after March 1, 2012.
(c) The department of local government finance shall by rule provide for the method for determining the true tax value of each parcel of agricultural land.
(d) This section does not apply to land purchased for industrial, commercial, or residential uses.
http://www.in.gov/legislative/bills/2012/SE/SE0019.1.html
"The Department of Local Government Finance ("the Department") recently requested and recieved updated Soil Productivity Factors from the Natural Resources Conservation Service of the United States Department of Agriculture ("USDA"). The updated Soil Productivity Factors are to be applied and used as a part of the March 1, 2012, general reassessment.
... The best soil productivity in the state is now approximately 1.66 (changed from 1.28), while the poorest remains .50."
http://www.in.gov/dlgf/files/120202_Soil_Productivity_Factor_Update.pdf
On March 19, 2012, the Governor signed into law SEA 19, which provides as follows:
SECTION 9. IC 6-1.1-4-13 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE FEBRUARY 29, 2012 (RETROACTIVE)]: Sec. 13. (a) In assessing or reassessing land, the land shall be assessed as agricultural land only when it is devoted to agricultural use.
(b) The department of local government finance shall give written notice to each county assessor of:
(1) the availability of the United States Department of Agriculture's soil survey data; and
(2) the appropriate soil productivity factor for each type or classification of soil shown on the United States Department of Agriculture's soil survey map.
All assessing officials and the property tax assessment board of appeals shall use the data in determining the true tax value of agricultural land. However, notwithstanding the availability of new soil productivity factors and the department of local government finance's notice of the appropriate soil productivity factor for each type or classification of soil shown on the United States Department of Agriculture's soil survey map for the March 1, 2012, assessment date, the soil productivity factors used for the March 1, 2011, assessment date shall be used for the March 1, 2012, assessment date. New soil productivity factors shall be used for assessment dates occurring after March 1, 2012.
(c) The department of local government finance shall by rule provide for the method for determining the true tax value of each parcel of agricultural land.
(d) This section does not apply to land purchased for industrial, commercial, or residential uses.
http://www.in.gov/legislative/bills/2012/SE/SE0019.1.html
Friday, March 23, 2012
Board Values Property in Excess of its Appraised Value based on Testimony of Taxpayer
Ms. Castleman offered a variety
of evidence in an attempt to show that the subject property was assessed too
high. Much of that evidence, however, lacks probative value. For example, while
Ms. Castleman’s son pointed to various factors that he felt detracted from the
subject property’s value, he did not attempt to quantify their effect or
otherwise explain how those factors led to a particular value or range of
values. Similarly, he did nothing to explain how his purportedly comparable
sales from 2010 related to the subject property’s market value-in-use as of the
January 1, 2007 valuation date at issue in this appeal.
…
http://www.in.gov/ibtr/files/Castleman_76-006-08-1-5-00001.pdf
…
Nonetheless, Ms. Castleman did
offer Lance E. Krebs’s appraisal report, in which Mr. Krebs estimated the
subject property’s market value-in-use at $390,000 and the subject lot’s value,
as vacant, at $350,000. Mr. Krebs certified that he performed his appraisal in
conformity with USPAP, and he used a generally accepted appraisal approach—the
sales-comparison approach—to arrive at his valuation opinion.
Although Mr. Krebs estimated
the property’s value as of March 1, 2008—more than a year after the relevant January
1, 2007 valuation date—he relied on sales from 2006 and 2007. Mr. Krebs’s
valuation opinion therefore bears at least some relationship to the subject
property’s value as of the relevant January 1, 2007 valuation date.
…
Thus, Mr. Krebs’s appraisal
convinces the Board that the subject property’s assessment was wrong. If Ms.
Castleman had asked the Board to lower the subject property’s assessment to
match Mr. Krebs’s appraisal, the Board likely would do so. But Ms. Castleman
asked for a land assessment of $473,928 on her Form 131 petition. And her sole
witness reaffirmed that request at the Board’s hearing. Under those
circumstances, the Board will not reduce the subject property’s assessment
below the amount that Ms. Castleman requested.
http://www.in.gov/ibtr/files/Castleman_76-006-08-1-5-00001.pdf
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