December 2006 Issue
Page 7

STATE NEWS

The President of the State Association recently wrote an article that was printed in the Editorial Section of the Truth newspaper on Thursday, November 30, 2006.  The article is printed below and explains the state association’s position on “trending” (annual adjusting assessed values). For more information on trending or property tax rates for every taxing district in Indiana visit the Department of Local Government Finance at http://www.in.gov/dlft/

“Trending Can Help Taxpayers Pay Their Fairs Share” by Sue Pfohl – IAR State President

Like many Hoosiers, you probably find our state’s method of property tax assessment confusing.  As one of nearly 20,000 REALTORS in Indiana, we experience the headaches it causes for our clients on a daily basis.  But under the new system of trending being implemented, some of the mystery should disappear.  This is because with trending, the assessed value of all residential property will be updated (or adjusted) every year.

Unless you have had major improvements to your home, you have been paying property taxes on an assessment based on January 1, 1999, for the past four years.  But later this year, taxpayers should receive a notice from township assessors providing the new assessed value for next year’s taxes.  An actual visit to your home by the assessor should not be necessary, as data from receipt transactions will instead be used to “trend” assessments according to the local residential market. 

The Indiana Association of REALTORS believes that trending is long overdue, as 48 other states already have a similar process for updating assessments.  And although there may be some property tax “sticker shock” as trending takes us from 1999 to more current values in one year, we believe it is the best interest of all Hoosier property owners, including current and future homeowners.  If done properly, trending can rectify the systemic inaccuracy in assessments identified by the Indiana Fiscal Policy Institute in its comprehensive tax equalization study (see http://www.indianafiscal.org).

Trending each year will help eliminate the wild shifts in the tax burden between types of property that followed the 2002 reassessment.  There could be some pain for homeowners in 2007, but a higher assessment does not mean that one’s property taxes are guaranteed to increase.  If your neighbors were “under-assessed” to a greater degree than you, your share of tax burden might actually be reduced.

The property tax is not going to disappear overnight, as there are no reasonable options for immediate elimination.  However, the Indiana Association of REALTORS will continue to fight for reducing our overall reliance on this tax to fund local government and schools.  We must also make certain that the property tax is grounded in transparent, accurate assessments so that taxpayers can have confidence that they are paying their fair share.  If trending is done correctly, it should help us make progress toward this latter goal.

Written by Sue Pfohl, IAR President
Printed in The Truth on November 30, 2006

IAR LEGAL UPDATE

IAR GENERAL COUNSEL

Jodi Tuttle, IAR General Legal Counsel, was released from her duties on Thursday, December 7, 2006 and will no longer work for Indiana Association of Realtors.  Jodi served the association for 15 years and we thank her for her many years of dedication to the members of this organization.  We also wish her the best of luck with her future endeavors.

LISA Legal Hotline New Hours

The LISA Legal Hotline is now open all day from 9:00 AM to 5:00 PM Monday through Friday for Principal or Managing Brokers or their written designate.  Call 1-800-444-5472.

Congratulations to the 2006 Indiana Association of REALTORS® – 2 REALTORS® of the Year

• Mark Bock from the Northeastern Indiana Association of REALTORS® has been in real estate for 27 years.  He also has 20 years of appraisal experience and 16 years as a sales manager and trainer.  Mark served as director, and then worked his way up the levels to serve as President of the Northeastern Indiana Association of REALTORS® and President of the Indiana Association of REALTORS®.
• Joe Traynor from the Metropolitan Indianapolis Board of REALTORS® entered the real estate profession in his early twenties and spent many years in residential sales prior to focusing on the appraisal business in 1985.  He has served as moderator for the Real Estate Academy of Leadership and held the position of President for MIBOR and the Indiana Association of REALTORS®.  Joe also held the position of NAR Regional Vice President in 2004. 

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