Although the legal opinion contained language suggesting approval of the use of market-derived data, the Court fell short of mandating a system based strictly on market value. Almost two years have passed since this ruling, but minimal progress has been made in implementing a more equitable and uniform assessment system. Policy makers have focused almost exclusively on the projected tax shifts, especially those to homeowners, under market-derived valuation methods, and have all but ignored the underlying inequities that plague Indiana's assessment system. This article reviews the essential features of Indiana's property tax and assessment systems, describes recent reform efforts, and identifies critical reform issues, apart from the tax shifts, that need to be addressed. Property Tax and Assessment Systems Property Tax Revenues.
Personal property accounts for about one-half of the total business property tax burden.
Although Indiana's constitution prohibits unequal property taxation, this relatively high business share demonstrates a de facto classification system that allocates a majority of the property tax burden to non-voting entities. The primary assessing jurisdiction in Indiana is the township. County assessors are elected in each of the state's 92 counties. As a general rule, the county assessor has a greater role when townships have more part-time assessors, because the county assessor reviews both personal property and real estate assessments. Additionally, the Tax Board hears property tax appeals, approves local government budgets, provides assessor training, and maintains a comprehensive local government database.