I will say that often retirees who collect social security actually do get raises indexed more to inflation than many of us. Not saying property tax increases are right under the current situation, just that retiree "fixed income" where working folks are considered to apparently have flexible income can be a fallacy.
We just received our new property tax assessment and let's just say, No ****ing way. The 2021 assessment was about what the asking price for the house when we bought it in September. We paid about 7% over asking price. The new assistant is a full 35% higher than the 2021 assessment.
There is a service locally that will fight this for us. It's under $200. But has anyone ever done this themselves and been successful? How hard is it? What needs to be done? I have no clue about this but if it's just a few forms and explanation, I'd attempt it myself.
My guess is they will rise. Everything is. That said, the process is that the governmental entity creates a budget and it is divided by the assessments of all properties. Those budgets have not been created.
So if they are wrong go appeal it. I doubt you can find recent sales that support your position.
When they talked of putting the limits on property tax hikes they did so by implementing a higher sales tax, if memory serves.
Assessments going up do not necessarily mean tax “bills” will go up however that will not be known until 2023...’22 pay ‘23. To simplify - Next year after budget is approved for taxing entity ( will use county but not discuss city, special assessments, etc. ) total dollars needed for county is determined. Then your portion of the county $$ needed has your township, school system, etc. needed $$ added on. This total is the amount of taxes needed to be collected to pay the bills. Basically the total $$ needed for the taxing entity budget are divided by the total $$ of assessments in the entity. The resulting number is your gross tax rate which for residential property is capped at 1%. If rate comes in below 1%, that is your rate. If over 1% your rate is 1% max. Your tax rate multiplied by your assessment equals your tax bill ( again this is simplified, not addressing homestead, mortgage exemptions, etc. or that rate is actually per $100 assessment vs. gross assessment ). If total assessment $$ go up more than budget $$ needed, your rate and thus total tax bill will go down. If they are equal your rate and bill will remain the same. If needEd $$ go up more than assessment $$ then rates and thus tax bill goes up, again capped at 1% for residential.
Thanks for the reply. Pretty much as I figured it.
Dont remember timing on sales tax hike. Caps were put in a few years after inventory tax was eliminated. Previously businesses, farms, etc. paid property taxes on any inventory/products/machinery, etc. That is why you saw a lot of product “moved” ( hidden) just prior to 3/1 every year. Was total bs and unfair tax. Finally eliminated so those assessments $$ disappeared. Less total assessments so rates went up on remaining assessments Thus residential tax bills went up. They cried and screamedSo politicians came up with caps to reduce residential rates and shifted those tax $$ needed back onto ag, landlords, and businesses…unfair once again. Rental and ag were set at 2%. Commercial at 3%. As there are more voters that own residential property than there are farmers , landlords, and business/commercial, the politicians did it this way to buy votes…in my humble opinion.
You have been dead on with my understanding until some of this. Memory is fuzzy now but my recollection was the state Supreme Court issued a ruling the the property tax scheme was unconstitutional because of disparate treatment and set up a showdown with the legislature that had to reform the property tax system. The inventory tax, sales tax, and others were all in the same reform.
With the caveat that I am philosophically opposed to property tax, if there is one, what basis should they use to tax property on other than market value? Our old system was ruled unequal treatment, particularly from county to county, based on our state constitution. Our overall tax burden ranks number 14, lower than 36 states.
taxfoundation.org
Yep, and it is not just the homes, good farm ground has been nearing $20,000 an acre for good ground up your way…
I understand they have to get the numbers from somewhere. In a market like we have just had it hurts the people that hold. Just my opinion of course.
This is an issue in center township in indy. I have read that 1/3 of the township is nonprofit/government that pay no taxes…
Just something else to kick the little guy while he's down.
I am in the process of an appeal right now, min went up 59% after I complained about a 10% increase last year, curious on the company you used would love some advice. I did meet with the assessor (and the company "Nexus" rep that does the actual assessments) they would not change anything yet also admitted they never actually physically assessed my property.
