Property Tax Assessment Appeals
If you own a property in Randolph County, you will get a Notice of Assessment (Form 11) in May of each year with exceptions placed on commercial, industrial, and AG or vacant property. This is due to the Market Analysis of sales. You have the right to appeal the assessment if you disagree with it. However, from January 1, 2024, the last day for appeal will be June 15. Note that there is proposed legislation to impose a fee or charge for the filing of any appeal, and it will be mandatory to attach a Power of Attorney within the last two years. Also, taxpayers must provide evidence to support their appeal.
An appeal begins with completing page 1 and filing Form 130 – Taxpayer’s Notice to Initiate an Appeal with the local Assessing Official. The appeal shall detail and or have evidence attached to explain the claim that the assessed value (not the taxes) is being disputed. A taxpayer shall only appeal the TOTAL Valuation of a property, not just a portion of it. None of the following are grounds for appeal.
- I (We) am (are) on a fixed income. This is because it has nothing to do with the value of the property as well and 95% of all property owners have an income that is fixed.
- The increase made me lose my deduction. Again, no bearing on the value of the property nor is there any recourse to say that the property cannot increase because it may cause a removal of a deduction.
- I have done nothing to cause an increase. This is because the Market has done it for you. You do not have to do anything to reduce the value either.
- Nothing is selling or I can't get that for this property. It must be noted that though it may seem to you that there have been no sales in an area to justify any increase or decrease, since 2014, the Average Sale Price (ASP) and Total Sale Price (TSP) have increased 225% with 41% increase within the last year. Due to interest rate increases, the volume of sales has been considerably slower however, the value or Sale Price is still maintaining a 90-95% of the asking price. The current asking price, in Randolph County, is around $160,000 with the higher end at $500,000 and as low as $29,000, based on location and condition of structure.
As assessments are based on the Sales Market Trend, Income, or if new the overall Cost of the structure, your tax increase or decrease is based on the local jurisdiction establishing a budget and taking a portion of your value to subsidize the product albeit Public Safety, Schools, Local payroll, etc. The percentage taken or placed upon your value is the same for everyone in the taxing district.
A taxpayer may only request a review of the current year’s assessed valuation. Following an informal conference with the local assessing official, the assessor will make a recommendation either denying or approving the appeal. If denied, the appeal will be forwarded to the county Property Tax Assessment Board of Appeals (PTABOA) for review. If the PTABOA denies the appeal, instructions will be provided on appealing the decision to the Indiana Board of Tax Review (IBTR). After being heard by the IBTR, taxpayers may also seek review by the Indiana Tax Court.
Appraisals are accepted however, are not required. If an appraisal is submitted, it must be the complete document and not just the valuation page and shall NOT be considered the final value as all appraisals are based on the scope of the appraisal set forth by the client and as such; will be reviewed following the National Uniform Standards of Professional Appraisal Practices and Mass Appraisal guidelines. It must also be noted and understood that just because the bank gives the owner a copy of the appraisal if the owner is not listed as the client, the value may not be considered valid.
For an Assessor to provide the lowest of the three assessment models (Sales, Income, and Cost) If you have a Rental Property, only the submission of a CURRENTLY SIGNED LEASE will be accepted to reflect Income Value.
A taxpayer can still file an appeal concerning “objective” issues (i.e., factual matters, such as the property record card containing an incorrect description of the property, like a garage that does not exist); however, it is on page 2 of Form 130.
An objective appeal issue may include:
- The assessment was against the wrong person.
- The approval, denial, or omission of a deduction, credit, exemption, abatement, or tax cap.
- A clerical, mathematical, or typographical mistake.
- The description of the property.
- The legality or constitutionality of a property tax or assessment. (must show how evidence)
- Objective claims may be made for up to three years of assessments with the submission of Form 130 for each year. However, taxpayers requesting refunds must also file a Claim for Refund form (Form 17T) and it must be associated with an appeal from that year.
It must also be understood that when an appeal is filed, ALL aspects of the parcel will be reviewed and considered in the appeal. An appeal is NOT a guarantee that the assessed value will be reduced. This is why the presentation of evidence is crucial to your opinion of value.