Senate property tax hearing today.
I really have nothing to gain personally; my assessor resigned after my PTABOA hearing so I have a new assessor. Today it was all about trying to improve the system. Most assessors are fair but some are convinced. I don’t envy their job of trying to determine a value on properties that are of all types and sizes. They cannot be an expert on all properties so they need our help in understanding our business. Residential is pretty simple but when it comes to business it is tough. Golf courses used to be assessed in Indiana on a per hole cost basis. The assessors had to depreciate and take obsolescence on the per hole values right away because they were too high to start with (23,000-163,000/hole). And even more aggravating was the fact that the values were very ambiguous using yardage, par and other non-tangible entities to arrive at a value for reproduction costs. When Indiana went to a fair market value law for property tax then the reproduction costs schedule really went out the window. Unfortunately some assessors continued to assess by the old way even though it was not according to Indiana Statue. The sad truth is ……. if golf courses were now assessed correctly using the old method; most courses today would be paying more in property tax than their net revenue. Before the law changed, assessors had to arrive at a value that the golf courses could live with while making them think that they were getting a deal; it was all a matter of negotiation. It had been that way since 1973 when I began to look at all business aspects of running a golf course. The new capitalization of income method it is cut and dry, the figures are taken off of the federal tax return, no fudging or cheating. Very simple, very easy, very quick and very accurate; reflecting what an investor would pay for the property if purchased for the same use.
Today I was able to speak in committee to a bill on property tax issues, I was urging legislators to build some accountability into a bill that hopefully will become law that will discourage rogue assessors. I hope my ideas are considered and implemented because I think it will help. I was encouraged when a committee person asked for my ideas in writing. Tomorrow morning he shall receive my thoughts in writing.
While at the Statehouse I spoke to 3 other Representatives and 4 Senators on other bills that I have been following that I have an interest in. Very tiring day but I think all and all it was very productive and in all cases the legislators were very receptive to my ideas. The topics included; property tax (2 bills), liability on athletic complexes used for kids, stream drainage issues and broadband deployment. I also sat in one other House committee hearing on Indiana Building Code issues, just for the education.
It is a real privilege to be able to participate in the legislative process and certainly legislators appreciate that citizens take an active part. It is necessary for a free government to have citizens participate in the legislative process. It is kind of a check and balance.