Gary taxpayers feeling sticker shock

Increase from school referendum included in May property tax billing

Taxpayers in the Gary Community School Corp. received their first look at what the referendum approved in November means for their property tax bills after the spring installment was sent.

Calumet Township Assessor Jackie Collins and Edward Gholson, chief deputy, said the office has been receiving calls and visits from taxpayers about the property tax bills. Most concerns focus on the referendum.

“Probably 99.5% of the inquiries are associated with the referendum and the charges associated with that,” Gholson said.

Collins said the funding generated by the referendum will help the schools and enable teachers who have not received a raise in about a decade to finally get a pay increase. It also means a higher tax bill for all property owners within the school district.

“This is something the voters in Gary actually voted for. I don’t think the voters knew the impact that this would have,” Collins said, adding for a lot of people, especially seniors on a fixed income, it is difficult to get them to understand the increase.

The referendum has added .00562 cents per $100 in assessed valuation, Gholson said.

Property values also have been on the rise in some areas of the city.

It’s seller’s market right now and Gary is no exception, Collins said.

The assessed value of properties in some areas of the city including the Miller, Lakeview and Lakeridge sections have been on the rise. The pair say increases in assessed value are being fueled by investors purchasing properties at bargain prices, fixing them and reselling them for a profit. Some properties also have been undervalued, which is evidenced by the selling price of neighboring properties.

Collins said Griffith is experiencing assessed value increases for some of the same reasons, but it is not impacted by the referendum.

Increases in assessed value are protected by the property tax caps and do not impact the overall property tax bill. Increases in the bills are being attributed to the referendum. The city’s tax rate has not increased, they said. The cost of the referendum for homeowners ranges from about $150 to $2,500 depending on the assessed value.

Residents have the option to appeal their assessed value but cannot appeal the tax stemming from the referendum, Collins said.

The tax generated by the referendum will remain on tax bills for eight years.

Some members of the Gary Common Council said they too have been getting questions from taxpayers.

Council President William Godwin, D-1st, has scheduled a Zoom session for 6:30 p.m. on Monday in cooperation with the assessor’s office for residents who have questions. Log in information is available on the Gary Common Council Facebook page or by calling the city council office.

“I know that people have gotten their tax bills, and in many cases their assessed valuation has increased dramatically in a lot of areas,” Godwin said.

The session will cover how assessed valuation works, how the appeals process works and give residents a chance to ask questions.

Collins said her office is taxpayer-friendly and anyone with questions about their bill can call, schedule an appointment or walk in for assistance.