more property tax information, please (Marion, Hope: real estate, buying a home, neighborhoods)

[donbo50]

My husband and I have been planning a move back to Indiana for the past year. Recently we've heard rumors that the property taxes have been raised double. As a retired couple, we need to be aware if there are any additional costs involved in buying a home. All of the homes we've viewed online and that have had the last year's taxes posted, seem to be reasonable. Am I nuts or aren't they posting the truth. When does this tax come into being and is it the entire state or just some of the counties. I know Marion Co. doubled but don't know much about the rest. Thanks in advance for any answers.
Donna

[rrah]

Donna, No, it's not true that the entire state doubled it's property taxes. I don't even think it's true that everyone in Marion County taxes doubled. What has happened in some areas is related to a concept called "trending." About 6-7 years ago there was a lawsuit in Lake County that protested the way properties were assessed. The old way allowed some properties to stay at the same assessed value for years while the next door neighbor's value went up. It forced the entire state to move to a closer market value for tax purposes. Thus assessor's now look at market "trends" in neighborhoods to determine values.

What happened in Marion County this year was the "perfect storm." As I understand it, some "hot" neighborhoods saw enormous increases in assessed value. It resulted in increased property taxes. At the same time many commercial properties were undervalued and under taxed. Without the value of the commercial properties in the budget, the residential properties "made up for it." That's sort of a simplistic explanation, but I hope it helps. A few years ago, when my county did their reassessment, many homeowners also faced enormous property tax increases. That was because their homes had not been reassessed in years. The shock of paying taxes on the true value was hard for many.

Keep watching though....lots of movement to change the property tax situation....

Anyone else care to jump in here?????

[domergurl]

You're right rrah. Sweetana will also be able to chime in here as a Marion county resident.

[Mike Taylor]

I agree rrah...I am a Marion County resident and my taxes (if I actually knew what they were) went up but certainly did not double. Donna, I am not sure if you are aware of this or not but, Marion County ordered a complete re-assessment of commercial and residential property. In the meantime, homeowners are supposed to pay last years tax amount until the new bill comes out. If you are buying a home in Marion County in the next 10 months or so, you need to be careful or you could end up paying part of the seller's property taxes. I wrote an article about it here:Marion County Buyers - Beware of Tax Situation - Indy Realtor's Blog - REW Blogs Real Estate Blogs
Hope that helps.

[donbo50]

Thank you so very much. It does open our eyes a little and we will move in a cautious way. I appreciate your reply...
Donna