The Republic
THE unveiling of local tax rates last week brings Bartholomew County a step closer to resolution of many questions in an extremely frustrating and complicated year for taxpayers and local officials.
Beginning with the 1993 suit in Lake County challenging the state's property tax assessment system, it was apparent that a major overhaul would be needed.
Despite the passing of 14 years, many counties are in turmoil regarding the redesigned assessment process and the resulting impact on property taxes.
At stake is the funding of basic services, the network of public officials and policies in place to assess value in each county, the determination of county budgets and the impact on the individual taxpayer or business.
One fact known from the outset was an inequity in the amount of taxes paid under the previous assessment system. The immediate concern was a steep increase for owners of older, under-assessed homes.
Other problems resulted from the system of "trending" homes so that their value reflected current estimates, especially in relation to neighboring properties.
The nature of the issue is reflected in the disparity between two local experts' estimates of the local impact: Assessor Tom Owens sees an average increase of about 8 percent, while Auditor Nancy McKinney predicts tax bills could increase 25 to 30 percent.
The state, at one time, estimated an average 24 percent increase statewide.
The state has provided safety valves for counties to consider, including increasing the sales or local income tax to defray steep property tax increases. Deadlines for filing homestead exemptions also have been extended by a rare edict of the governor, which normally would need approval by the General Assembly.
Taxpayers also have the option of appealing their tax bill once they are received.
Where Indiana's property tax dilemma goes from here is the next question. The assessment mechanism has been revamped, but the consistency of assessment among 92 counties remains all over the board.
The fact remains that governmental functions, whether it be the courts, schools, juvenile detention or libraries, will be funded out of some type of taxes.
A massive job awaits the General Assembly in its next session, since it's obvious the job is far from completed.