Indiana Apartment Association Seeks Tax Reform

Posted by Indiana RealEstateRama

July 13, 2007

INDIANAPOLIS - The Indiana Apartment Association is seeking tax reform by kicking off a statewide voter registration campaign next month. Apartment owners and rental property landlords say they do not get the tax benefits that single-family homeowners get.

The Monon Place Apartments is an older complex in Broad Ripple with rents ranging from $600 to $1,200 a month. Unfortunately, says property manager Alexandra Jackiw, that is probably about to change.

“A 207 percent increase in real estate taxes is a significant shock and will dramatically impact how we operate the property,” said Alexandra Jackiw, Buckingham Management President. “We can’t discount the fact that we will probably have to raise rents.”

Jackiw says it is a good thing street resurfacing and reroofing are happening now because she says the maintenance budget is about to take a big cut.

The Indiana Apartment Association says complexes are unfairly taxed. Executive director Lynne Sullivan says apartments and rental homes account for 75 percent of property taxes collected, but they get no relief.

“They don’t get any rental deduction as far as like a homestead credit,” Sullivan said. “We don’t have a lot of inventory so we don’t get the relief from the reduction of the inventory tax.”

The apartment association hopes to get the attention of politicians through a voter registration drive it is planning.

Broad Ripple rental property owner David Jessee says the taxes on his six duplexes went up an average of 75 percent, but that will not be passed on to renters.

“You know we really can’t. I haven’t been able to raise my rents for the last five years. The market has been pretty flat in that area,” Jessee said.

He said about all he can do is appeal his bills and make an appeal to politicians for tax relief.

By Leslie Olsen, WISH-TV

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