Annual Trending   Rolling Reassessmentsm   Ratio Studies   Cost Table Updates: CCIsm   New Construction Valuation   Appeals & PTABOA Support   Income Capitalization Studies   Sales Disclosure Form Management   Special Purpose Property Valuations   Land Valuation   Public Relations   Assessor Training Annual Trending Beginning March 1, 2006, and each year thereafter, all real property in Indiana is to be annually trended or updated based on a valuation date of January 1 of the previous calendar year.  This process provides assessors an opportunity to correct flaws in assessments and adjust assessed values closer to sales prices or other objective information. This process relies greatly on valid sales information from the county's sales disclosure form database.  Assessors are also required to stratify residential data and sales to produce better assessments. Stratification may be based on any objective factor, such as location, grade, age or property type. As for commercial and industrial property, Nexus Group relies heavily on its Composite Cost Indexsm (CCI).  In addition to relying on sales and cost data, the annual trending process includes values derived from the income approach to value.  Just as sales are compiled into a countywide database, detailed income and expense data for investment properties are also maintained.   Rolling Reassessmentsm   Nexus Group’s trademarked process focuses on continuous assessment updating, monitoring and quality measurement. Given that all real property assessments must be annually trended, the reassessment process can no longer be viewed as a one-time shot at producing correct valuations. Not only does the Rolling Reassessmentsm concept greatly increase the quality of assessments, it reduces the anxiety of the reassessment process. Simply trending current assessed values will not produce better assessments. Rather, local and property-specific factors require continuous revisions to ensure that assessments meet state’s strict assessment standards. Rolling Reassessment will turn the upcoming General Reassessment into nothing more than another annual update.   Ratio Studies Another critical aspect to the state's property tax assessment system is the requirement of county assessors and the state Department of Local Government Finance (DLGF) to conduct equalization or ratio studies. The basis for these studies is the International Association of Assessing Officers (IAAO) Standard on Ratio Studies (July 1999).   In short, all property classes must be assessed between 90% and 110% of True Tax Value (TTV). If average assessment levels fall outside this range, an equalization factor must be applied to all properties in the subject class. For example, if the measured average assessment level of commercial property in a given township were 80%, all commercial properties in the township would receive and adjustment factor of 1.25 (1.00/0.80), in order to bring the average assessment level to 100% of TTV.   Ratio studies are also designed to measure the consistency of assessments or uniformity. Uniformity examines the variance or deviation from the average assessment level.  Better assessments are more uniform. Two statistical measures, the coefficient of dispersion (COD) and price related differential (PRD), addresses the degree of uniformity in assessments. At worst, poor assessment uniformity could lead to the need for reassessment by the township assessor, county assessor, or DLGF.   A ratio study is designed to give assessment officials feedback on the quality of assessments of areas, property classes and types of properties.  Consistent assessment problems can be identified and resolved prior to appeals, action by the DLGF, or action by the Indiana Tax Court.   Cost Table Updates (CCIsm) In most counties, there are an insufficient number of valid commercial and industrial improved sales in order to properly trend these values.  During 2006, many counties failed to update commercial / industrial assessments, leading to reassessment orders by the DLGF. The best starting point for trending commercial and industrial improvements each year is to update the C&I cost tables.   This method better reflects the value-in-use of commercial and industrial improvements.  Nexus Group has developed a cost-based trending index call the Construction Cost Index (CCIsm) .  Nexus’ patented CCIsm relies heavily on cost indices generated by the U.S. Bureau of Labor Statistics, insurance companies, state-specific construction cost indices published by state agencies, internet resources, income & expense data, appraisals obtained via hearings in Indiana, and actual construction costs provided by Indiana taxpayers.  We will update your CAMA system so as to reference these new cost tables. Nexus has further stratified all commercial and industrial properties into qualitative cost categories, resulting in a wide range of indices.  For example, between 1999 and 2005, some construction costs have increased as little as 12%, while others have increased by more than 70% for certain commercial use types.  Nexus Group has implemented the CCIsm in every CAMA system used in the state and also changes the depreciation year as well.  The CCIsm is especially useful with the valuation of new construction. New Construction Valuation   Nexus Group is now offering an invaluable service to local Indiana assessors: new construction valuation. By law, assessors are required to assess any real property improvements in place on March 1. Given the many other required duties of assessors, some choose to hire this service.   Getting the job done right the first time is our goal. Our well-trained, Level II staff members evaluate every aspect of the newly built structure(s) and reevaluate all other improvements on the parcel. We will exceed your goals for timeliness, quality, and cost-effectiveness.   Appeals & PTABOA   More than every before, the appeals process in Indiana is a critical step in providing uniform and equal assessments.  Just as counties require consistency on the valuation side of assessing, so too do the determinations made by the township assessor and county property tax board of appeals (PTABOA).  Nexus Group provides appeal services at all levels, including the State Tax Court and Supreme Court.  In recent years, Nexus Group has represented the interests of local assessors in the largest real estate appeals in Indiana, including appeals filed by steel companies, refineries, riverboats, and regional shopping malls.  This service can include a thorough on-site audit as well as research into industry characteristics, trends and the firm itself. Likewise, we review appraisals that are increasingly accompanying appeals. We have saved counties over $45 million in property tax revenue. Income Capitalization Studies   With the state now dictating the accuracy of the “bottom line” value, the income approach is often the best valuation method for investment properties. Though a complicated process, Nexus Group collects detailed income and expense data, determines market rents and expense ratios and calculates gross rent multipliers and capitalization rates for all investment property.  Nexus Group has conducted several studies and assembled detailed databases on numerous investment properties including rental homes, apartments, retail strip centers, office building, mini-warehouses, and mobile home parks.  These income databases, combined with our statewide sales database forms an invaluable tool to estimate market value.   Sales Disclosure Form Management   Every real property transaction in Indiana requires the completion of a sales disclosure form. The data contained in these forms is now some of the most important data available to Indiana assessors and all forms are public information. Ensuring the accuracy of the information on such forms is a critical aspect of accurate assessments. Including invalid, non-arm's length transactions in the sales disclosure database will lead to more appeals and more successful appeals.   Let Nexus Group sort through the multitude of sales disclosures to determine what is usable, invalid and those that could be valid with more information. We provide sorting, data entry, and maintain your database for uses in land valuation, neighborhood factors, etc. Reports from your database are provided at no charge, since it is after all your data.   Special Purpose Property Valuations   Many counties and townships encounter unique commercial or industrial properties that must be assessed. Fortunately, our staff has a wide range of experience and has likely encountered similar properties elsewhere. Some properties require new and unique approaches, testing the resourcefulness of assessors. Nexus Group has saved counties over $45 million of tax dollars over the last several years fighting appeals on unique properties including steel mills, refineries, quarries, public utilities, riverboat casinos, and horse racing tracks.   Land Valuation   Indiana law requires land to be assessed at market value. Rather than quote the definition of market value, what's the best way to implement market value given the information available to assessors? What sales are valid? What are good procedures to draw boundaries? When are site values preferred to pricing based on other types of land classifications?   Public Relations   Does your jurisdiction need a presentation regarding property tax information, such as assessment methods, appeals, tax rates, etc.? Nexus Group is the well-known leader in making well constructed and easy to understand presentations before local interest groups such as taxpayers, county councils, chambers of commerce as well as the media. We tailor our presentations to each unique audience. Generally, our discussions can last between an hour and an entire day.  Nexus Group also specializes in preparing press releases and meeting with local media representatives.  Ultimately, the goal is to provide all taxpayers the most accurate information available. Assessor Training   Nexus Group offers on-site and regional training in all areas of concern to Indiana assessors. We offer timely and important information that assessors need and can put to immediate use. Rather than a boring lecture with no new material, our discussions strive for interaction, problem solving and allowing you to put concepts to work in the field and the office. As both principals of Nexus Group have taught undergraduate and graduate courses at the college level, you are assured of high quality training.