Circuit Breaker

If you are wondering why so much talk about Harrison Square and Fort Wayne Community Schools cost, it came in the mail for some homeowners. The property tax bill with increase. The assessor office has until March 12, 2007 to bill these notices of a reassessment. The last reassessment saw the willingness of dishonest assessment and the state government stepped in and imposed a circuit breaker rule.

The circuit breaker rule prevent local politicians from gouging property owners with increase in property tax during a reassessment year. The circuit breaker caps local tax rates. This prevent local official from stockpiling additional revenue beyond the always padded budget. The circuit breaker rule began necessary after the local politician created a great deal of wealth from the reassessment to collect revenue that was badly needed.

To get around the circuit breaker rule, many homes are over assessed by local officals (not appraisers) to collect additional funds. Many homeowners do not challenge the over assessment because their tax payments are included in the mortgage. Because the property tax payments are included in the mortgage many of these homeowners are unaware that there is a reassessment that increase their property tax payment which impacts the payoff cost of their home. Furthermore, without receiving the 11 R/A form these homeowners are unaware they have a right to challenge this increase in their home value.


Other homeowners will not receive form 11 R/A the notice of assessment of land and structures. If they do not have the form 11, they will not be allowed to file an appeal this year. In not allowing these homeowners to file appeal contrary to state law in accordance to IC 6-1.1-15-1(d):

d) A taxpayer may appeal a current real property assessment in a year even if the taxpayer has not received a notice of assessment in the year. If an appeal is filed on or before May 10 of a year in which the taxpayer has not received notice of assessment, a change in the assessment resulting from the appeal is effective for the most recent assessment date. If the appeal is filed after May 10, the change becomes effective for the next assessment date.

, the assessor's office is able to gouged these customers without being questioned.

The local officials will tout the increase in the homestead deduction from $35,000 to $45,000. However, a closer look will reveal that the increase in the property values will offset the increase in the homestead deduction along with the tax rate.

In other words, if the homestead credit stayed at $35,000 and the property value was not increased, and the tax rate was at the highest rate, a homeowner property tax would not increase that much.

For example my home increase by $12,000 and not a single home was sold in the neighborhood. As a matter of fact many of the homes are sitting empty because of homeowners and the renter are unable to find buyers or tenants. Of that $12,000 I will have to pay an increase of tax of at least $6,000. Now that is without a tax rate increase. The property tax payment will increase more if the tax rate increases from the last assessment. So how much did the assessment help me? It didn't. It's called the shell game.

So now you know why so much talk about Harrison Square and Fort Wayne Community Schools. The reassessment was the problem and the projects were the solutions to why this year bills are so high. It sounds like Bill Palace owner will fare better than most of us. Bill Palace was reported to have been sold for $2.4 million dollars. If there is going to be a remonstrance, it should start at the auditor's office.


Hey you elected these people!