Commercial property owners across Indiana are receiving their 2026 Form 11 (Notice of Assessment)—and many are seeing significant increases in assessed values, often 25% or more. These changes can have a lasting impact on your property tax liability, making it critical to understand what’s driving the increases and what options may be available.
Why Are Assessments Increasing?
A major factor behind these higher assessments is a statewide shift in valuation methodology. The Indiana Department of Local Government Finance (DLGF) has begun updating long-standing cost models that were widely considered outdated. These revised models incorporate more recent construction data and modern assumptions, resulting in broad, formula-driven increases in replacement cost new less depreciation (RCN-D).
While this modernization effort brings valuation methods more in line with current data, it also introduces challenges for property owners. Cost-based models can apply increases broadly and may not fully account for property-specific factors such as actual condition, functional or economic obsolescence, or local market dynamics. As a result, many commercial properties may now be over-assessed relative to true market value.
The Importance of the Appeal Deadline
Property owners do have the right to challenge their assessment—but timing is critical.
Key deadline: June 15, 2026, or within 45 days of the date listed on your Form 11, depending on when it was issued.
Missing this deadline means waiting another year to appeal, even if errors or overvaluation exist. Additionally, this year’s assessed value often becomes the baseline for future increases, magnifying the financial impact of inaction.
What Property Owners Should Do Now
Before assuming an increase is unavoidable, take time to review your assessment carefully. A thorough review should include:
- Verifying key property details such as size, condition, use, and classification
- Identifying any improvements—or deterioration—that may not be accurately reflected
- Comparing your assessment to recent market data and comparable properties
- Evaluating whether the assessed value fairly reflects your property’s true market value
If discrepancies or potential overvaluation are identified, an appeal may be warranted.
How Professional Guidance Can Help
Navigating property tax appeals can be complex, particularly in a year with widespread reassessment activity and increased appeal volume. Working with experienced advisors can help you:
- Determine whether your assessed value is supportable
- Identify opportunities for assessment reductions
- Navigate the appeal process efficiently and effectively
Early review is especially important this year to preserve your rights and maximize potential savings.
Don’t Wait Until the Deadline
If you own commercial real estate in Indiana and have received a higher-than-expected assessment, now is the time to act. A proactive review can help ensure your property is assessed fairly—and protect you from unnecessary tax exposure in future years. If you have questions about your assessment or would like assistance evaluating your options before the deadline, consider reaching out to your Kruggel Lawton tax advisor or Brandon Gritton, CPA, Director of State and Local Tax, as soon as possible.
