The headline read first time newly annexed Aboite residents hit with a 57% tax bill hike. Disbelief was the initial response to the increase for the Aboite’s residents and a sigh of relief for low property tax increase of 12% and 14% for Fort Wayne and other Allen County residents. But in the back of mind, the low percentage appeared to be hiding something. The something was the increase in the homestead credit that was to reduce the tax increase to around 7.7%. The headline was only telling only half the story, Fort Wayne and other Allen County were being hit with doubling of their tax increases.
What happened?
The Indiana Department of Local Government Finance realized that local community were increasing property value through the new tool of trending. Trending allowed local government to assess property at a market rate annually to insure a more orderly and timely process before the major required reassessessment. Trending yearly would alert the state to any trends in fraudently home assessment.
After reviewing early trending number from various counties, the IDLGF projected highs of at least 24% increase in homeowners property taxes. Indiana General Assembly alarmed by the high increase by local government decided to offer property tax relief to homeowners. The General Assembly decided to keep the $45,000 temporary homestead deduction for homeowner. In doing so, the deduction would limit homeowner tax bill increase in the range of 7.7% instead of the projected 24%. However, the saving would not go to the local government it would go directly to the homeowners in a tax rebate check.
Therefore, what happened?
Local government was outraged that homeowner would benefit rather than a windfall for local government. Furthermore, the General Assembly had placed a cap on how much local government could tax high-end homeowner to 2% of the gross amount of these homeowners property assessed value. Local government would no longer be able to blame the state for any increases to homeowner’s bill based on state spending.
That’s what happened.
Local government for the first time since 2002 could not predict how much they would collect from the high-end homeowner and had to tax these homes at the market rate and to tax them at the maximum 2% cap. In doing so, the tax relief provided by the General Assembly to reduce homeowners’ tax bill was erased by the greed of local government under trending for Aboite residents, as well as Fort Wayne and other Allen County residents.
It's time for the taxpayers to kick out the auditor, Blosser the auditor assistant, the treasurer,Lee and the treasure assistant, the County assessors.
That's what needs to happen.
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