1993-07-15 Resolution 79 - Laserfiche WebLink

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PROCEDURES FOR PROPERTY ASSESSA~NT. TAR LEVY AND COLLECTION (Cont'd) "Gross Assessed Value" is equal to 33 1/3% of the "True Tax Value". "Net Assessed Value" represents the "Gross Assessed Value" less certain deductions for mortgages, veterans, the aged, the blind, economic revitalization, and tax-exempt property. The "Net Assessed Value" is the value used for fazing purposes in the determination of tax rates. If a change in assessed value occurs, a written notification is sent by either the township assessor or the County Boazd of Review to the affected property owner. Upon notification, if the owner wishes to appeal this action, the owner may file a petition requesting a review of the action. This petition must be filed with the County Auditor within 30 days after the written notification was received. While the appeal is pending, any taxes on real property which become due on the property in question must be paid in an amount based on the immediately preceding year's assessment. The next general reassessment of property in the State is scheduled to be effective Mazch 1, 1995 for taxes payable in 1996. Reassessments aze scheduled to occur every four years thereafter. The State Boazd of Tax Commissioners is required by law to make cone-time adjustment to neutralize the effect of a reassessment on property within tax increment allocation azeas so that owners of obligations secured by tax increment revenues will not be adversely affected. Indiana Code 6-1.1-12.1 provides a mechanism by which a governmental unit may authorize a property tax deduction for real property and for new manufacturing equipment within an economic revitalization area. The City may grant the tax abatement of real property for a period of (i) three, six or ten yeazs, if the petition is filed after January 1, 1986, or (ii) ten yeazs if filed after December 31, 1978 but before January 1, 1986. The City may grant the tax abatement of personal property for a period of five or ten yeazs. The deduction is equal to the increase in assessed value resulting from the rehabilitation or new development, or the assessed value of the eligible equipment, multiplied by certain prescribed percentages. Indiana Code 6-1.1-21-5 provides that each yeaz taxpayers will receive a credit for property tax replacement, known as the "property tax replacement credit" (PTRC), in the amount of approximately twenty percent (209'0) of their tax liability for taxes as defined under IC 6-1.1-22-9 which aze due and payable in May and November of that yeaz. The credit is applied to each installment of taxes. However, the tax liability of a taxpayer does not include the amount of any property tax owed by the taxpayer attributable to certain specified components of the tax levy. Among the tax levy components not receiving the PTRC aze the property taxes that will be used to pay for the principal and interest due on debt entered into after December 31, 1983. Although the State Boazd of Tax Commissioners has determined that the State's PTRC will not be allowed on gross Tax Increment, IC 36-7-14-39.5 allows a credit (the "Additional Credit") equal to the PTRC to be taken from the gross Tax Increment to compensate taxpayers in an allocation azea. Before July 15 of each yeaz, the Commission must determine and notify the County Auditor of the amount, if any, by which Tax Increment is expected to exceed the amount of property taxes necessary to meet the obligations which may be legally paid with Tax Increment, such as debt service on bonds or lease rental payments. Excess property taxes may be paid to other taxing units so long as it would not jeopazdize the interest of the owners of obligations payable from Tax Increment. Pursuant to the Pledge Resolution, the Commission cannot pass-through any excess Tax Increment to other taxing units until it annually satisfies the Lease Rental Requirement which assures that the Lease Rental due in the 12-months following the next July 1 will be paid. BOND RATING Moody's Investors Service, Inc. (Moody's) has assigned a bond rating of "A" to the Taxable 1993 Bonds. Such rating reflects only the view of Moody's and any explanation of the significance of such rating may only be obtained from Moody's. The rating is not a recommendation to buy, sell or hold the Taxable 1993 Bonds, and such rating may be subject to revision or withdrawal at any time by Moody's. Any downwazd revision or withdrawal of the rating may have an adverse effect upon the market price of the Taxable 1993 Bonds. The Authority did not apply to any other rating service for a rating on the Taxable 1993 Bonds. -10-