Vigo property tax bills coming in mid- to late July

By Howard Greninger
The Tribune-Star

TERRE HAUTE May 14, 2008 10:55 pm

— Spring brings flowers and the inevitable property tax bill in Indiana, yet Vigo County property owners won’t see that bill until mid- to late July.
Even then, the spring property tax bill will not likely be due until mid- to late August, said Vigo County Auditor Jim Bramble.
Last year, a new assessment system of “trending” to match property assessments to market value delayed tax bills until mid-June. Now, other information is needed by county officials to calculate property tax rates before a final tax bill can be mailed.
“We have been working on TIF [tax increment finance] neutralization studies and the county has not yet certified its assessed values to the state,” Bramble said.
A change in state law may affect how TIFs are funded next year. In addition, once the county has certified and sent its tax rates to the Indiana Department of Local Government and Finance, that state agency must approve those rates plus county budgets for 2008.
Once approved, there is a 10-day waiting period when taxing units in the county can appeal those tax rates. Bramble said if no appeals are made, he expects work on generating tax bills can be done by mid- to late July.
“The statute provides for a minimum due date to taxpayers of 15 days after the tax bill is sent, but I would like to have at least 30 days to allow taxpayers time to pay that” as tax bills would go out much later than the traditional May 10 due date, Bramble said.
Property tax bills for the fall will be due on the traditional date of Nov. 10.
Bramble said the Indiana General Assembly will have to adapt to a new timeline for property tax bills.
“This tax system has collapsed. By the time you get a budget approved, you are more than halfway through the year that the budget has been established,” Bramble said. “The Legislature is going to have to get realistic about this timeline. The timeline established was built for a tax system that no longer exists.”
Bramble said government agencies will still have to budget using an 18-month budgetary cycle, “but in that cycle, units will have to plan for a later first distribution,” he said. “And that is expensive, as many units have bond payments that are set up on getting tax settlements by June.”
That is the case for the Vigo County School Corp., which earlier this week, gave approval to seek a temporary $10 million loan to meet cash flow needs. The school corporation projects its general fund will have a deficit by the end of June, with that deficit remaining for several months.
Howard Greninger can be reached at (812) 231-4204 or howard.greninger@tribstar.com