Property values in Northwest Indiana have been on the upswing in recent years, yet very few people are making use of the property tax appeals process.
As people begin receiving their property tax bills for 2023 payable in 2024, Lake County Assessor LaTonya Spearman wants to ensure property owners know they have options when it comes to their property tax assessments when they do not agree.
Lake County total property values have climbed more than 26% over the past three years, she said.
“Despite the 20 to 30% increases in residential properties some communities saw last year, the number of appeals filed was less than 1% of the total number of parcels. While I hope this is an indication that we’re doing a good job and taxpayers are more informed about the process, I want to make sure people are aware of their rights and the upcoming deadline,” Spearman said.
For assessment year 2023, payable in 2024 (the current tax bill cycle), the total assessment of Lake County properties climbed 8.21% from about $45.146 billion the previous year to roughly $48.852 billion.
The increase from assessment year 2022 payable in 2023 was 12.16%, with total values climbing from about $40.122 billion to $45.001 billion. In assessment year 2021 payable in 2022, values increased by 5.80% from about $37.841 billion to $40.035 billion.
Peter Novak, CEO of the Northwest Indiana Realtors Association, said homes in the region continue to sell at or slightly above asking price in most cases, keeping home values in the region strong. He said a tight housing supply and the overall desirability of the region will keep home values high.
Until the supply is improved, Novak said there is unlikely to be any downward trend in pricing.
“Property tax bills serve as the initial notices of assessment in Lake County and mark the official opening of the current year’s appeal season. Given the significant increases we’ve seen in the real estate market across the County of the past two to three years, we anticipate this will be an active season.
Spearman said the statutory appeal deadline of June 15 has been extended to June 17.
Indiana is a market value-in-use state, Spearman said, which means that your property’s value should reflect what a willing buyer would pay to purchase it.
Indiana properties are valued using mass appraisal techniques.
“With mass appraisal, properties are valued in conjunction with other properties in the area. The accuracy of assessments refers to how close the assessments determined by local assessing officials are to market value-in-use,” Spearman said.
Each year, annual adjustments or trend factors are applied to property values across Lake County. Trending requires assessors to research sales of properties in a particular area every year. Using that information, assessors then estimate the values of other properties in the same area to determine an assessed value, Spearman said.
“The market data suggests property values across the State have increased significantly over the past two to three years. Our most recent assessments account for that appreciation,” Spearman said.
This is where the appeal process can come in for property owners who do not agree with their assessed value.
“Since assessments in Indiana are conducted en masse, an individual property’s unique features are given greater consideration during the appeal process,” Spearman said.
The process allows both parties, the assessing official and the taxpayer, an opportunity to present evidence of the property’s market value-in-use. The evidence may include but is not limited to appraisals, a sale of the subject property, sales of comparable properties relevant to the year under appeal, income information and construction costs for newer properties.
She urged property owners to note that when an appeal is initiated, the review of the property’s assessment may result in a decrease or no change in value.
St. John Township Assessor Deborah Walters said the transition to the market value assessment system did cause assessed values to trend up to where they would be on the market. While assessors work to get the information correct, mistakes can happen, and houses can be valued differently.
If a clerical mistake, such as entering three bathrooms instead of two, has occurred, it can be rectified without an appeal.
Not all homes will appreciate at the same value. Homes that have not been updated like other houses in the neighborhood or those that maybe have some unaddressed maintenance issues may not have increased in value the same as other homes that have sold in the neighborhood. The appeals process can help identify any discrepancies.
“If people have questions they need to come in and talk to the township or county assessor. Talk to us, see what’s going on. We’re always willing to try and correct something if we got it wrong,” Walters said.
Anyone who would like to initiate an appeal must complete, sign and return Form-130 by the June 17 deadline. A subjective appeal can be filed on page one of the form. An objective appeal, based on an error in the physical characteristics of the property, can be filed on page two.
Forms are available at the Lake County Assessor’s Office website https://assessor.lakecountyin.org.
