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
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
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
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
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
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
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.