Marion County, Indiana, Set to Increase Many 2022 Property Tax Assessments 10% or More

Taxpayers in Indianapolis and Marion County, Indiana, may be in for an unpleasant surprise when property tax bills are mailed out in the coming days. Based on assessment data available on the Marion County Assessor’s website, many residential and commercial real estate owners will see their 2022 assessed value increase by 10% or more from the prior year’s assessed value. If you own real property in Marion County, now is a good time for you to ask these important questions:

Why Did the Assessed Value of My Property Increase From the Prior Year?

Numerous factors can affect the assessed value of your property, so it can be helpful to understand how most assessed values are determined across Marion County. Assessed values are comprised of a land value and an improvement value, which are set forth in detail on county property record cards. Marion County property record cards are available for download on the assessor’s website.

Due to the large volume of properties that need to be assessed each year, the Marion County assessor (as well as other assessors across Indiana) use a “mass appraisal” process to value a group of properties as of a given date, using standard methods, employing common data and allowing for statistical testing. Most of the mass appraisal guidelines for Indiana assessors are rooted in the application of the cost method, and the improvement values are determined using specified cost tables and then deducting depreciation in an attempt to arrive at Indiana’s standard of value for property taxation: true tax value.

Changes to the cost tables (e.g., changes in construction costs) can affect your property’s assessed value, as can annual adjustments or “trending” applied by the assessor’s office. Annual trending adjustments require assessors to research transactions (i.e., sales) of similar properties in a particular area over the prior year and to use that information, in part, to update values in the same area. As a result, in their initial assessment of your property, county assessors rarely consider a property’s specific characteristics or market area. This can mean that the assessor’s determination of your property’s assessed value may not be accurate.

What If I Disagree With the Assessed Value Assigned to My Property?

You can appeal the valuation. The appeals process begins with written notification to the appropriate local official. You must file an appeal on the form prescribed by the Department of Local Government Finance, Form 130 (Taxpayer’s Notice to Initiate an Appeal) with the appropriate local official. It is important to preserve your rights to challenge that value by appealing to the proper tax body at the proper time. For property located in Marion County, an appeal contesting the 2022 assessed value must be filed by June 15, 2023.

The appeal may detail the pertinent facts of why the assessed value is being disputed, although there is no requirement to provide evidence of value at the time of filing. Following an informal conference with the local assessing official, the assessor will make a recommendation either denying or approving the appeal. The appeal will then 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), the last administrative level where taxpayers can (and, typically, must) submit evidence supporting reductions of the assessed value of their property. After being heard by the IBTR, a taxpayer may seek review by the Indiana Tax Court.

Property taxpayers should not have to pay more than their fair share. Thankfully, there are statutory and other legal mechanisms in place, which provide taxpayers the right and opportunity to ensure that their property is correctly valued and is not taxed more than is appropriate. If you believe that the county assessor has improperly valued your property as of January 1, 2022, which is the assessment date used to determine 2023 property taxes you pay, you should strongly consider appealing your assessment. And because of the short timeframe involved, it is important to line up tax professionals early on who can help you or your company through the tax appeal process.