CenterPoint wants the state to lower the assessed value of local property
EVANSVILLE – CenterPoint Energy is appealing the assessed value of its Evansville river property to the state, an action that could impact customers.
In two separate appeals before the Indiana Board of Tax Review, CenterPoint is contesting the Vanderburgh County Assessor’s 2022 and 2023 assessments for its property at 101 Court Street. The assessment area includes the utility’s main office building and the parking lot behind it.
In 2022, the property was assessed at $3,460,100 and the improvements at $27,811,200. In 2023, the property was assessed at $3,460,100 and the improvements at $26,271,000. According to the assessor’s website, the 2024 assessment remained unchanged.
Cynthia Vaught, deputy director of the tax office, said the county expects CenterPoint to appeal for 2024 as well, which they did before Monday’s deadline with the county.
“The assessment appeal process exists so property owners can ensure that assessments accurately reflect market value and are consistent with the assessments and market value of comparable properties recently assessed in the area,” said Noah Stubbs, spokesperson for CenterPoint Energy. “Our appeal of this assessment is necessary as we continue to monitor the interests of our customers and the impact of this assessment on customer rates.”
An appeal of the 2022 tax assessment was denied at the local level by the Vanderburgh County Property Tax Assessment Appeals Board. The appeal for 2023 was filed directly with the state.
What type of cost reduction or reimbursement would CenterPoint want?
The Courier & Press asked Stubbs what CenterPoint’s assessment for the property should be for 2022 and 2023. Stubbs said the utility has not yet finalized its “opinion.” Nor is a recommended value listed in filings with the state.
But Vaught said CenterPoint’s original claim was for a “reduction in the assessed value of $11,000,000, which represents a refund of over $300,000 per year.”
Earlier this month, Vanderburgh County commissioners approved a contract between the assessor’s office and real estate appraisal firm Integra Realty Resources. Vaught said Integra’s job will be to conduct a “completely independent, third-party appraisal of the commercial property.”
“We believe it is critical to fight such cases because this type of refund and reallocation of assessed value has the potential to disproportionately shift the tax burden onto homeowners and other taxpayers,” Vaught said.
According to Vanderburgh County Auditor Brian Gerth, any refunds will be paid out of the county’s general fund.
“These transactions are tracked and at settlement time, the money is deducted from the taxing authority to which it was originally distributed,” Gerth said. “That money is then returned to the county’s general fund.”
In this case, however, it would work differently because CenterPoint Energy’s property on Court Street is part of the Downtown Tax Increment Finance district.
In these cases, the Audit Office must analyze the total reimbursement and compare it to the base estimate and the incremental estimate to determine the extent to which the TIF is impacted.
According to the Indiana Department of Local Government Finance, the base value is the value at the time the TIF is established. This goes to taxing entities such as schools. The incremental value is the increase in value after the TIF is established. These funds go back to the TIF district.
What impact would a refund have on other taxpayers?
Gerth said without a completed appeal, it’s hard to say how a refund would affect other taxpayers.
“Depending on the base value (assessed value) and the incremental value (assessed value), the impact of the appeal would be felt by all taxing units in the City Pigeon tax district,” Gerth said. “If the appeal is successful and the assessed value is reduced in subsequent years, that difference will be distributed among taxpayers within that taxing unit.”
Those same taxpayers are also CenterPoint’s customers – customers, Stubbs said, who are already burdened by the amount of property taxes the company must pay.
“It is important to note that we are seeking an accurate valuation, especially when compared to other riverfront properties,” he said. “The valuation of this property may impact customer rates, as property tax is part of the utility’s overall costs.”
He said Indiana’s rate-setting process allows those costs to be passed on to customers as part of the rates.
“If the property is assessed to be worth more than its actual market value, the resulting higher property taxes would result in higher costs,” Stubbs said. “These costs are then reflected in the rates charged to customers through traditional rate-setting methods.”
The Courier & Press reached out to Stubbs and asked: If the state doesn’t lower the assessment on CenterPoint’s property, does that mean customer rates could go up?
Stubbs didn’t answer.
Sisterhood and Fresh Girlz Club Partners – Farmville
Bemidji Public Library collects 15,000 books ahead of its annual book sale
Park workers in Minneapolis announce intention to strike
About The Author
