Researchers at Ball State University say that property tax assessment is filled with errors across the state but not so much in Grant County.
State pundits and leaders recently speculated on property taxes affecting Indiana communities in a recent Assessment Quality study by Ball State University's Michael Hicks and Dagney Faulk. The study analyzed several property home values and assessments statewide, and individual counties in central Indiana, but not in Grant County.
The study claims that statewide low-value residential properties tend to be over-assessed, and high-value properties tend to be under assessed. Homes with market values between $100,000 and $200,000 are okay, Hicks explained.
The study analysis didn't include lower-priced homes under $100,000, Hicks said. He believes the higher-priced homes here, like other communities, may be more difficult to assess but there might not have been enough high-end homes in Grant County for comparison when doing the study.
"The 4-percent difference between assessment and sale price is industry standard," Hicks said. "Ten percent is okay, and you guys are within 4 percent."
He said homes are selling within 4.5 percent of what the assessment said they're worth, in Grant County.
"I think Grant County doesn't appear to have a difficult problem," Hicks said. He added that the recession from 2007 to 2009 didn't help, but can't be blamed for the problem. Higher priced homes in Grant County could present a problem for assessors if there aren't many for to compare with for market value.
Homes priced between $100,000 and $200,000 tend to be accurate in their assessments, according to the study.
Hicks believes unfair assessments are more of a problem in Indiana because the state has gone through assessment changes over the years.
The lag between when a home is assessed and when it is tax is detetrmined could change the assessed value within 2 percent, Hicks said.
Grant County Assessor Gary Landrum pointed out that the study didn't address low-end properties values selling in the $30,000 to $60,000, a common price range in the city of Marion. Like one of the study's conclusions, he doesn't know why some homes appear to be over or under assessed.
"We take very seriously the sale of property that occurs in Grant County," Landrum said. "That's what assessments in Indiana do and they are based on sales of property."
Landrum added that the "good thing" is taxpayers can appeal their assessed value.
"We have people come in, talk to them and look at any proof or information that show the values should be lower. I think that's a good safeguard, they ensure that our values are at market value."
Landrum explained the time between assessment and the tax bill is typically14 months in Grant County.
"It's all based on sales," Landrum said.
Larry DeBoer, a Purdue University agricultural and economics professor,agrees with the Ball State professors about the lag in the tax rate and assessment system, but he considers it a nationwide problem, not just Indiana. He said the inconsistencies in assessments have become common in in Indiana since 2003 when the system changed and information for a tax bill started coming from the previous year's home sales.
"Prior to that, we had a system known as a true tax value, there were no sales ratio studies and the state assessed homes based on replacement cost," he said.