ILNews

Tax Court: tax rate recalculation incorrect

Back to TopCommentsE-mailPrintBookmark and Share

The Indiana Tax Court ruled that a government agency incorrectly calculated a Marion County school district’s capital project fund levy property tax rate for 2011, and it has ordered the Department of Local Government Finance to recalculate the tax rates going back to 2007.

In Metropolitan School District of Pike Township v. Indiana Department of Local Government Finance, No. 49T10-1103-TA-21, the Pike Township school district appealed the DLGF’s final determination recalculating the school district’s capital projects fund levy property tax rate for 2011. The DLGF notified the school district that it was reducing the estimated tax rate pursuant to the formula provided in Indiana Code 6-1.1-18-12. The school district challenged the rate reduction, but the DLGF issued a final determination certifying its previous order as final.

But Tax Judge Martha J. Wentworth reversed, finding the DLGF did not properly follow the law when it performed the steps outlined in I.C. 6-1.1-18-12. Based on DeKalb County. E. Cmty. Sch. Dist. v. Dep’t of Local Gov’t Fin., 930 N.E.2d 1257, 1260-61 (Ind. Tax Ct. 2010), the DLGF should use a zero value in steps two and four of the formula when there is no increase in a school district’s assessed value from one year to the next, and it should also use a zero value in those steps when a school district’s assessed value actually decreases.

The DLGF applied DeKalb in its 2011 CPF levy property tax rate adjustment by using zeros in steps two and four of the statutory formula, but the school district contended that the DLGF should have gone back and recalculated the rates for 2007-2010 because CPF levy property tax rate calculations are affected by previous years’ rate calculations. Judge Wentworth agreed, rejecting the DLGF’s argument that it would be improper to recalculate the previous rates and that the Tax Court lacks subject matter jurisdiction to order the DLGF to provide the retroactive recalculations.

"The School District does not ask the DLGF to recalculate the CPF levy property tax rate for years 2007 through 2010 using zero values instead of negative values in steps two and four to recover ‘lost’ funds from each of those years,” she wrote. “Rather, the School District simply seeks to correct those erroneous calculations for the sole purpose of ensuring the accuracy of its 2011 CPF levy property tax rate calculation, which is the subject of the final determination at issue, so that it may levy and collect the funds to which it is statutorily entitled.”

She remanded to the DLGF with instructions to recalculate the tax rates for 2007-2010 using zero values instead of negative values in steps two and four of the statutory formula.

 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Bill Satterlee is, indeed, a true jazz aficionado. Part of my legal career was spent as an associate attorney with Hoeppner, Wagner & Evans in Valparaiso. Bill was instrumental (no pun intended) in introducing me to jazz music, thereby fostering my love for this genre. We would, occasionally, travel to Chicago on weekends and sit in on some outstanding jazz sessions at Andy's on Hubbard Street. Had it not been for Bill's love of jazz music, I never would have had the good fortune of hearing it played live at Andy's. And, most likely, I might never have begun listening to it as much as I do. Thanks, Bill.

  2. The child support award is many times what the custodial parent earns, and exceeds the actual costs of providing for the children's needs. My fiance and I have agreed that if we divorce, that the children will be provided for using a shared checking account like this one(http://www.mediate.com/articles/if_they_can_do_parenting_plans.cfm) to avoid the hidden alimony in Indiana's child support guidelines.

  3. Fiat justitia ruat caelum is a Latin legal phrase, meaning "Let justice be done though the heavens fall." The maxim signifies the belief that justice must be realized regardless of consequences.

  4. Indiana up holds this behavior. the state police know they got it made.

  5. Additional Points: -Civility in the profession: Treating others with respect will not only move others to respect you, it will show a shared respect for the legal system we are all sworn to protect. When attorneys engage in unnecessary personal attacks, they lose the respect and favor of judges, jurors, the person being attacked, and others witnessing or reading the communication. It's not always easy to put anger aside, but if you don't, you will lose respect, credibility, cases, clients & jobs or job opportunities. -Read Rule 22 of the Admission & Discipline Rules. Capture that spirit and apply those principles in your daily work. -Strive to represent clients in a manner that communicates the importance you place on the legal matter you're privileged to handle for them. -There are good lawyers of all ages, but no one is perfect. Older lawyers can learn valuable skills from younger lawyers who tend to be more adept with new technologies that can improve work quality and speed. Older lawyers have already tackled more legal issues and worked through more of the problems encountered when representing clients on various types of legal matters. If there's mutual respect and a willingness to learn from each other, it will help make both attorneys better lawyers. -Erosion of the public trust in lawyers wears down public confidence in the rule of law. Always keep your duty to the profession in mind. -You can learn so much by asking questions & actively listening to instructions and advice from more experienced attorneys, regardless of how many years or decades you've each practiced law. Don't miss out on that chance.

ADVERTISEMENT