(H/t Blue Indiana) The Muncie Star Press has an article entitled Reassessment order prompts mass confusion over tax payments. At the heart of the confusion, for the moment, is whether residents of Delaware County need to pay their 2006 level of property tax or the 2007 level of property tax in the wake of Governor Daniels statement that Delaware County needs to be reassessed and the Department of Local Government Finance’s initiation of reassessment proceedings in Delaware County.
Again, I’m no expert, but I think the source of the confusion is that the Governor is taking a “decide first, follow the decision making procedures second” approach to this. I think he’s already decided that Delaware County is going to be reassessed and DLGF will rubber stamp the Governor’s decision. However, that’s not the way the system is officially supposed to work. The Governor doesn’t have any formal role in this. DLGF is supposed to make a determination that it thinks something might be wrong, initiate a hearing to determine the facts, and then make a decision. While this procedure is ongoing, I think the presumption is probably supposed to be that the assessments are correct and that taxpayers will have to pay property taxes at the 2007 levels. However, since the Governor has made his decision, and DLGF probably knows that it will order reassessment regardless of anything that might be brought forth during the formal process, the temptation is to tell taxpayers right now that they can go ahead and pay taxes at the 2006 levels. But, I think that would almost constitute a formal admission that DLGF is just going through the motions by holding a hearing — which is maybe just a step too far. At this moment in time, I think the Delaware County treasurer is probably right that taxpayers are required to pay taxes at the 2007 level. In a week, when the DLGF holds its hearing and can then formally issue an order for reassessment of Delaware County, Delaware County taxpayers will probably be told to pay taxes at the 2006 level.
So, for the next week, I would expect the confusion to continue. But,. like I said, I’m no expert. Perhaps there is some other reason why DLGF and the County Treasurer can’t just come out and answer what seems like a simple question — 2006 or 2007 levels?
[tags]property taxes[/tags]
…and when is the deadline for paying property taxes in Delaware County? It’s normally May 10th in Indianapolis but this year it became July 27th and then August 10th. There’s a 10% penalty for late payment. With the ambiguity of 2006/2007 rates, which will the 10% be based on?
This just in — no reassessment in Delaware County. The Governor backed off from an order. The people sent the message yesterday that they know a reassessment or retrending is not the answer. They are calling for a special session to address the tax rates.