Since 2002, Indiana has been adjusting property values to move to a "market-based assessment system." This means your property will be assessed for what it would sell for on the market. That sounds fair to me. If everyone pays their fair share, then it is an equal burden to all. However, when exceptions are made, the system fails. And believe me our system has failed. One exception that contributes to this failure is farmland.
The Indiana Department of Local Government Finance has established a maximum base value for farmland at $880 per acre. This is for all of Indiana. The local assessor can reduce this value if deemed appropriate. Do any of you readers know where in Indiana a person can buy farmland for $880 or less per acre? When farmland is for sale, it is split into three or four parcels. That's because few people can afford to buy the entire farm. These parcels will generally bring $5,000 to $10,000 per acre. The $880 per acre is well below the true market value. It was reported in this paper on July 11, 2007, that a new airport was planned near Anderson, requiring five square miles of land. Representatives are asking farmers to sign options to sell their land for as much as $20,000 per acre. Does this sound like a "market-based assessment system" to you?
Another major factor to our high taxes is businesses. Their taxes have been restructured in the past years to provide attractive benefits. The Indiana Department of Local Government Finance offers qualified businesses a deduction of up to $2 million (per county) for real and personal property. It's called "investment deduction," and its purpose is to attract new business to Indiana. Does it work? I don't know but we are paying for it anyway.
Since many taxpayers have complained to their elected officials we are now going to see action. They are all outraged about this. They are going to form committees. They are going to investigate. They will get to the bottom of the problem. Our State Senators, our State Representatives and our Governor all know about our unfair tax system. They just hope you don't find out about it.
Simply stated: A budget is established. Taxes are collected to cover the budget. If the landowners and businesses are not paying their fair share, the burden is passed on to the homeowners.
