Taxpayers should be aware of some changes for the January 1, 2022, assessment which may cause significant increases in the assessed values of their properties.
The value changes will not impact the 2022 property tax bills.
The changes are beyond the control of the Assessor’s Office.
• Statewide certified agricultural land base rate increased from $1,290 to $1,500 per acre. This rate is set by the Indiana Department of Local Government Finance (DLGF) and is the same in all 92 counties.
• Cost tables used for assessments were updated. These tables are also set by DLGF and they
determine the approximate building costs of structures throughout the state. The tables were last updated in 2018. Due to increased material costs, the majority of cost schedules increased, and the four primary schedules (dwellings, general industrial, general commercial mercantile, general commercial residential) increased an average of 10% to 15%.
• Real estate market: This is perhaps the biggest factor and the one everyone is familiar with at this point. Each year the Assessor’s Office must review property sales and adjust property values accordingly. According to a recent article on marketwatch.com, median home prices in the US increased by 16.9% in 2021 and Shelby County was no different. This office must keep assessments in line with the market by law, which means as the market goes up, so do assessments and vice versa.
To summarize, many changes have occurred over the last year that will impact assessed values across the board. However, taxpayers should not panic. As assessments increase, tax rates decrease because the property tax levy, the amount of revenue collected via property tax, is frozen. There is no way to estimate what taxes will do as the Assessor’s Office has no control over tax rates.
More information regarding appealing assessments and specific property values are provided on Assessment Notices (Form 11s) mailed on April 27, 2022. The appeal deadline is June 15, 2022. This can be done by filing an Appeal Form 130 (Taxpayer’s Notice to Initiate an Appeal) that can be located at the resources listed below:
Assessor Shelby County Website: https://engage.xsoftinc.com/shelby
Shelby County Website: www.co.shelby.in.us
Department of Local Government Finance website: www.in.gov/dlgf