Indianapolis – At a hearing of the Indiana Interim Study Committee on Fiscal Policy, representatives of the Indiana Farm Bureau warned that recent updates to the state’s cost tables have caused a sharp rise in assessed values for agricultural buildings. The bureau’s senior director of policy strategy and advocacy, Katrina Hall, said an analysis commissioned by the organization initially showed a 44% increase statewide, which was later revised to a 29% increase after appeals and discussions with local assessors. That jump represents roughly $2 billion in additional assessed value for taxes payable in 2027.
Inconsistent Application Across Counties
Hall emphasized that more than half of the parcels in the updated study saw assessed‑value increases of at least 15%. She argued that the disparity stems from some county assessors adjusting the state’s cost tables to reflect local conditions, while others apply the tables without comparable adjustments. The result, she said, is that similar barns, grain bins and livestock facilities can receive substantially different assessments depending on the county.
Calls for a Uniform Valuation System
The Farm Bureau is urging Indiana to adopt a nationally recognized valuation system such as Marshall & Swift and to review the depreciation schedules used to calculate the value of agricultural buildings as they age. Hall noted that many taxpayers obtain appraisals using that system when challenging assessments, creating a mismatch between the methods used by property owners and those used by the state.
Proposed Tax‑Cap Change
In addition to valuation reform, the bureau proposed moving agricultural improvements from the state’s 3 % property‑tax‑cap category into the 2 % category. Hall estimated that the change could generate about $44 million in savings for agricultural properties, providing direct tax relief separate from any adjustments to assessed values.
State Officials Respond
Tim Rushenberg, general counsel for the Indiana Department of Local Government Finance, reminded the committee that assessed value is only one component of a property‑tax calculation. He pointed out that local tax rates, deductions, credits and constitutional tax caps all influence the final bill, and that a higher assessed value does not automatically translate into a higher tax bill.
Rusenberg defended the state’s annual assessment adjustments, known as “trending,” which keep property valuations aligned with market evidence between physical reassessments. He cautioned that reducing the frequency of these adjustments could allow inequities to accumulate, potentially leading to larger corrections later. He also warned that proposals to limit assessments based on purchase prices or annual growth rates could raise constitutional questions if comparable properties are treated differently.
Local Assessment Practices
Barry Wood, director of the department’s assessment division, explained that Indiana previously updated its cost schedules every four years and is now moving toward annual reviews or an adjustment factor to limit large fluctuations. The department is seeking additional data on construction costs and appraisals to determine whether specific agricultural building schedules need correction.
Public comments on the readoption of Indiana’s real‑property assessment rule are open until October 23.
Broader Context
The discussion follows Indiana’s 2025 property‑tax overhaul, which altered homeowner deductions and credits, business personal‑property taxation and local‑government revenue rules. Subsequent analysis by the Indiana Fiscal Policy Institute found that the reforms could affect homeowners differently, with lower‑value homes potentially seeing increases while higher‑value homes receive larger reductions.
State Rep. Cherrish Pryor (D‑Indianapolis) highlighted the difficulty many residents face in navigating the assessment and appeal process, especially older homeowners. She called for a system that is easier to understand and reduces the burden of challenging potential errors.
County assessors in several counties, including Hamilton County’s Kevin Poore, are piloting automated valuation tools to identify inconsistencies before assessments are issued. The Department of Local Government Finance recommends starting with an advisory or quality‑control pilot while preserving local assessors’ authority and taxpayers’ right to notice and appeal.
Original reporting: WOWO News/Talk (Fort Wayne) — read the source article.
