By Tim Vandenack, Truth Staff
ELKHART -- At first glance, valuation and tax figures for Elkhart County's various taxing districts for 2007 seemingly bear out concerns of property taxes run amok.
The county's overall residential valuation increased by 20.6 percent, from $5.85 billion for 2006 to $7.05 billion, and the increase in 13 of 31 taxing districts here totaled more than 25 percent and as much as 33.4 percent.
Look at preliminary property tax figures from the county assessor's and county auditor's offices and the changes are even more pronounced.
Though the average residential property tax bill in Elkhart County for 2007 jumped 29.5 percent over 2006, bills for those owning homes valued at $100,000 last year jumped at least 43 percent in seven districts this year and by more than 30 percent in 12 more.
"It just really hits hard for somebody who had the forethought to get (a home) on the lake," Tedd Johnson, who lives on Simonton Lake here, said at a rally this week meant to push lawmakers into action on the property tax issue. He saw the valuation of his home, built by his father in the 1940s, double to $218,000 with a corresponding jolt in his property tax bill to nearly $2,600, up about $1,750, or more than 300 percent.
Still, factor in the $300 million in state funds that'll be doled out to eligible homeowners -- $235 on average, though the exact number will probably vary widely between households -- and the bite, though still stinging to people like Johnson, becomes more manageable, to a certain extent anyway. The state money aims to minimize the valuation spikes, caused by a new assessment system statewide meant to result in the true market value of homes.
On the high end, the owner of a home in Nappanee valued at $100,000 in 2006 still will see his or her 2007 tax bill rise, on average, by 27.2 percent, from $1,297 to $1,649, even with the $235, according to an analysis of figures from the assessor's office.
On the other side, though, a Goshen homeowner will see a jump of just 6.7 percent, from $1,327 to $1,416, while an Elkhart resident living in Concord Township actually will see a slight dip, from $1,278 to $1,272.
The confusing, complicated turn of events has some clamoring for the elimination of property taxes altogether. There have also been mutterings that a new property assessment here is in order because some of the valuation spikes just can't be correct.
"I'm not on the lake. I'm not on the river," said Bobbie Weaver, an Elkhart woman who can't believe that her home is worth $239,000, much more than any of her neighbors' homes. She's already late on the first portion of her tax payment, due last week, and plans to appeal the estimated value to the assessor's office.
Nonetheless, County Assessor Cathy Searcy defends the new home valuations compiled by her office, based on sales in 2004 and 2005, noting the relatively small number of appeals and the fact that the residential category wasn't the only one to trend upward.
The valuation of the county's industrial property jumped 17 percent, on whole, while commercial increased by 19.6 percent.
And County Commissioner Mike Yoder, who's open to the idea of a 1 or 1.5 percent sales tax hike to ease the property tax burden, blames the current situation on the new valuation system and, more significantly, the removal of business inventory from the property tax rolls.
Some $864 million in inventory came off the rolls, drying up the source of about $8 million to $12 million in property taxes and shifting the burden that much more to others, including homeowners.
Elkhart Mayor Dave Miller, who sounded off this week in favor of eliminating property taxes, also notes the impact of removing inventory from the rolls, but says it was "probably a good business and political decision."
Weaver, though, who operates a hair and tanning salon from her home, isn't so sure.
"It was ridiculous," she said. "You're talking (about) huge companies that could really help take the burden off the (homeowners') property taxes."
Government spending the fix?
Through the debate over property taxes, which ratcheted up here after tax bills were mailed out last month, many have called for a closer look at local and state government spending.
By reining in government spending, not as much tax revenue will be needed, allowing for a measure of relief.
Numbers from the auditor's office show that, indeed, spending by Elkhart County's various taxing units is rising. Property tax collections for 2006 for the various township, city, town and other governmental subdivisions, including the county, totaled $177.86 million. The figure for 2007, meanwhile, rose to $200.31 million, a jump of 12.61 percent.
Similarly, the composite levies increased in 28 of the county's 31 taxing districts, by more than 10 percent in 23 cases.
Yoder, though, notes that the loss of inventory from the tax rolls figures in those levy increases since property taxes now must be drawn from a smaller pool.
And while mindful of the need to watch the pocketbook, he says spending, at least at the county level, has kept on a relatively stable, albeit upward, trajectory.