The Associated Press has a story on a new property tax rule that is probably going to be delayed. The rule change would be to go from a “market value in use” system to a “market value in exchange” system. The latter is the predominant valuation in 48 other states.
“Market value in use” means that a property is assessed according to the value it has with its current, specific use whereas “market value in exchange” means assessing the property’s value based on its potential use. According to the article, the latter method of valuation would result in a substantial reduction in value for older industrial properties. If that happened, the tax burden would shift to the rest of the tax base — including residential property owners. Cheryl Musgrave, commissioner of the Department of Local Government Financing has announced her opinion that now might not be time for the change.
It will also increase a fair number of agricultural assessments.
Lake County hasn’t had it right since 2002. Great, let’s just throw in yet another change!
Seriously. I have no love for Gary, East Chicago, or Hammond, but this rule change is going to further hammer these cities.
I don’t think that this is a reason to eliminate the rule change, but how about delaying it until, say 2012? Give everyone a year or two to get used to the tax caps?