Chesterton Tribune

 

 

Porter Regional Hospital appeals property tax assessment

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By JEFF SCHULTZ

Porter Regional Hospital filed an appeal of its current assessed value to the Property Tax Assessment Board of Appeals (PTABOA) on Friday contending that its 430,000 sq. ft. building is worth about $205 million less than what the County says it is worth.

While they agree the $1.7 million assessment of the land is accurate, the privately-owned hospital at U.S. 6 and Ind. 49 in Liberty Twp. hospital officials say its facilities should be assessed at $37.5 million, instead of $242.8 million, according to the appeal form filed at the County Assessor’s office.

Hospital officials indicate in their petition that the property is “valued higher than comparable properties,” claiming that the assessment completed by the County Assessor’s office in October “lacks equity with similar properties” and “is not based on the definitions, rules, guidelines, and procedures established by the 2011 (sic 2012) Assessment Manual and Assessment Guidelines.”

County Assessor Jon Snyder -- who mentioned hospital officials have appealed their assessment each year he has been in office Š said Tuesday that as with any appeal, there will be a preliminary conference with the taxpayer to try to resolve as many issues as possible before the appeal is forwarded to the PTABOA for review.

The PTABOA board is to hold a hearing within 180 days of the filing of an appeal or the taxpayer may appeal to the Indiana Board of Tax Review.

The $37.5 million that hospital officials assert their facilities to be worth is closer to the March 2012 assessment at $34.1 million, when the hospital construction was only 90 percent complete, a difference of $3.4 million.

Snider had hired Jack Poteet of Hospital Appraisal Services in late 2012 to conduct an appraisal of the property believing its value to be higher than $34 million.

Poteet appraised the hospital with three different approaches -- cost approach, income approach and sales-comparison approach -- and in his final 350-page analysis he valued the hospital’s real property at $244.5 million.

Snyder on Tuesday said that resolving assessment appeals can be a long process, sometimes taking years, like the recent proceedings of the USW Local Steelworkers 6787 in Portage which is appealing having its tax exempt status cancelled in 2009.

County Auditor Bob Wichlinski said that in the case of this appeal, the hospital will pay property taxes in 2014 equal to what they agreed to pay in 2013.

With the appeal and the 10-year abatement granted by the County Council, Wichlinski said it will be a “balancing act” for him to project net assessed values with a property not producing tax revenue for the respective units of governments who use the value to set their annual budgets.

“If it’s not going to translate into revenue, you can’t have units of government counting on that money,” he said.

Earlier in May, the hospital filed its personal property tax return, which is self-reporting, with a value of $18.4 million. Personal property, which is separate from real property values, entails equipment on property that is used for income production or held as investment, other than the building itself.

Snyder told the Chesterton Tribune at deadline today that the PTABOA board will be reviewing the hospital’s 2012 appeal during its meeting on Tuesday, Nov. 26.

 

 

Posted 11/20/2013

Porter Regional Hospital appeals property tax assessment

By JEFF SCHULTZ

Porter Regional Hospital filed an appeal of its current assessed value to the Property Tax Assessment Board of Appeals (PTABOA) on Friday contending that its 430,000 sq. ft. building is worth about $205 million less than what the County says it is worth.

While they agree the $1.7 million assessment of the land is accurate, the privately-owned hospital at U.S. 6 and Ind. 49 in Liberty Twp. hospital officials say its facilities should be assessed at $37.5 million, instead of $242.8 million, according to the appeal form filed at the County Assessor’s office.

Hospital officials indicate in their petition that the property is “valued higher than comparable properties,” claiming that the assessment completed by the County Assessor’s office in October “lacks equity with similar properties” and “is not based on the definitions, rules, guidelines, and procedures established by the 2011 (sic 2012) Assessment Manual and Assessment Guidelines.”

County Assessor Jon Snyder -- who mentioned hospital officials have appealed their assessment each year he has been in office Š said Tuesday that as with any appeal, there will be a preliminary conference with the taxpayer to try to resolve as many issues as possible before the appeal is forwarded to the PTABOA for review.

The PTABOA board is to hold a hearing within 180 days of the filing of an appeal or the taxpayer may appeal to the Indiana Board of Tax Review.

The $37.5 million that hospital officials assert their facilities to be worth is closer to the March 2012 assessment at $34.1 million, when the hospital construction was only 90 percent complete, a difference of $3.4 million.

Snider had hired Jack Poteet of Hospital Appraisal Services in late 2012 to conduct an appraisal of the property believing its value to be higher than $34 million.

Poteet appraised the hospital with three different approaches -- cost approach, income approach and sales-comparison approach -- and in his final 350-page analysis he valued the hospital’s real property at $244.5 million.

Snyder on Tuesday said that resolving assessment appeals can be a long process, sometimes taking years, like the recent proceedings of the USW Local Steelworkers 6787 in Portage which is appealing having its tax exempt status cancelled in 2009.

County Auditor Bob Wichlinski said that in the case of this appeal, the hospital will pay property taxes in 2014 equal to what they agreed to pay in 2013.

With the appeal and the 10-year abatement granted by the County Council, Wichlinski said it will be a “balancing act” for him to project net assessed values with a property not producing tax revenue for the respective units of governments who use the value to set their annual budgets.

“If it’s not going to translate into revenue, you can’t have units of government counting on that money,” he said.

Earlier in May, the hospital filed its personal property tax return, which is self-reporting, with a value of $18.4 million. Personal property, which is separate from real property values, entails equipment on property that is used for income production or held as investment, other than the building itself.

Snyder told the Chesterton Tribune at deadline today that the PTABOA board will be reviewing the hospital’s 2012 appeal during its meeting on Tuesday, Nov. 26.

 

 

Posted 11/20/2013