Can somebody help me understand the nuances of IN property taxes

[CountryBoy19]

Got my tax bill, it more than doubled from last year. I think I know why but I want to PM some details to somebody that can help me understand if this is right or not.

Can anybody help me?

A bit of information: the issue has to do with the purchase of a new house, we owned 2 houses when it changed from 2016 to 2017. Of course I can't claim a homestead exemption on both homes for 2016 (or can I? more details can be shared in a PM), but does that mean I should lose that (and the tax-cap that goes with it) for the entire year on the old house?

 

[Big Rigger]

Yes, I would be interested to learn more about this topic as well. Ours just about doubled this year too, mainly due to the property valuation going up dramatically and tax rates for the local schools going up a decent click.

 

[Vigilant]

The only nuance I know about is if you don't pay your .gov rent, they take your ****!

 

[spec4]

I'm in a subdivision of very near identical homes outside. This year it looks like our neighbors all went up and we went down over 10%. Can't figure why. No sales in our small subdivision in the past year. Do Indiana assessors consider comparable sale in their assessment process? Can't complain about the reduction, just don't know what caused it.

 

[KittySlayer]

Of course I can't claim a homestead exemption on both homes for 2016 (or can I? more details can be shared in a PM), but does that mean I should lose that (and the tax-cap that goes with it) for the entire year on the old house?

Only one Homestead exemption per taxpayer (couple is a single taxpayer).

Property taxes are assessed on a specific day, not for a 12 month period. So on assessment day you need the appropriate Homestead exemption and Mortgage exemption on file for the applicable property.

 

[funeralweb]

I'm in a subdivision of very near identical homes outside. This year it looks like our neighbors all went up and we went down over 10%. Can't figure why. No sales in our small subdivision in the past year. Do Indiana assessors consider comparable sale in their assessment process? Can't complain about the reduction, just don't know what caused it.

"Assessed value" used in figuring property tax liability and "market value" of any home that might sell are two different animals. In the depressed housing market where I live, I'd gladly sell my property for what the ASSessor values it.

 

[JettaKnight]

So about that homestead exemption...

I claim it, it knock off value, but appears to moot due to capping.

Example (figures made up):
Assessed value: $250K
Exemption deduction: $50K
Taxable value: $200K
Tax (2%): $4000
Capped tax (1%): $2500

Is this how it's suppose to be?

 

[jkaetz]

So about that homestead exemption...

I claim it, it knock off value, but appears to moot do to capping.

Example (figures made up):
Assessed value: $250K
Exemption deduction: $50K
Taxable value: $200K
Tax (2%): $4000
Capped tax (1%): $2500

Is this how it's suppose to be?

This is the way I understand it.

 

[BobDaniels]

you can expect assessed value to skyrocket since property taxes are now capped by the Indiana Constitution. Ours has gone up over 50k in three tax years we've owned our current home.

Tax reductions are a joke; they just find another way to relieve you of their money.

 

[Vigilant]

you can expect assessed value to skyrocket since property taxes are now capped by the Indiana Constitution. Ours has gone up over 50k in three tax years we've owned our current home.

Tax reductions are a joke; they just find another way to relieve you of their money.

Budget shortfall you say, reassess, problem solved, problem staying solved!

 

[indykid]

Have to add my 2 cents to the rent we pay for the privilege of living the American Dream (home ownership).

Like has been said, our elected and unelected officials have figured out that the well hoopla'd property tax cap just allows them to continually raise our rent by increasing the taxable value of our home. My house went up over $14,000 last year, and according to my Mayor I should be happy it is worth more. I respectfully reminded him that I see that value only if I sell the house, which I don't want to do. I like Andy Cook as he is doing some great things for Westfield, but I would really like to see the owners of our wonderful Grand Park pick up some of the tab.

As for your tax going up so much, if a new home to you, I don't know, but if the house was built within the last year or so, the first year is on the land value only. It is after the house is built and lived in would you get the rental fee from the count based on it's competed assessed value in the second year.

 

[ghitch75]

they say it is worth more to get more taxes but it will never sell for what they say it is worth........pay your bi-yearly rent or get your ass kicked

out......i owe not one dime on


my place and i pay 2k a year to live here.....

 

[indykid]

ghitch75 brings up something I like to point out to people, that property tax is payed twice a year unless you pay it through escrow in your mortgage.

I have always complained that escrow accounts for property tax should be illegal. Make people send in a check every six months and they will see what they really are paying. Most people with mortgages have no idea what they pay in property tax, so forcing them to figure out how to save up that money for a check to their county renter would really open up a lot of eyes.

 

[JettaKnight]

Everyone in Indiana can deduct property tax from their state income tax, therefore, everyone should already see it come spring.

Let's just solve several problems and make mortgages illegal. On a 30 year (and probably 15) mortgage you'll be paying far, far more to bankers and lining the pockets of investors than you will give to keeping the public works serving the public.

 

[PGRChaplain]

The Tax Bill is from the Government, nothing they do makes any sense........

 

[jkaetz]

Everyone in Indiana can deduct property tax from their state income tax, therefore, everyone should already see it come spring.

Let's just solve several problems and make mortgages illegal. On a 30 year (and probably 15) mortgage you'll be paying far, far more to bankers and lining the pockets of investors than you will give to keeping the public works serving the public.

You don't have to do anything so drastic as make it illegal. Just make part of the mortgage application process doing the math on how much you'll pay in interest if you only make the suggested payments. If your number doesn't match the actual number then no mortgage for you. If your number does match and you still want to do it then have at it.

 

[CountryBoy19]

ghitch75 brings up something I like to point out to people, that property tax is payed twice a year unless you pay it through escrow in your mortgage.

I have always complained that escrow accounts for property tax should be illegal. Make people send in a check every six months and they will see what they really are paying. Most people with mortgages have no idea what they pay in property tax, so forcing them to figure out how to save up that money for a check to their county renter would really open up a lot of eyes.

Escrow is generally only mandatory if you have less than 20% down. With most financial institutions you can request escrow be "curtailed" in partial or in full once you hit 20% equity.

You don't have to do anything so drastic as make it illegal. Just make part of the mortgage application process doing the math on how much you'll pay in interest if you only make the suggested payments. If your number doesn't match the actual number then no mortgage for you. If your number does match and you still want to do it then have at it.

They already do this; they show you, over the life of the loan, how much you'll pay in interest.


That being said, I didn't want this to be a rant thread. I know all about the property taxes, I simply want somebody that can explain a few of the finer points about how things work. I guess I will have to schedule a meeting with my assessor and discuss with her what it all means.

 

[halfmileharry]

"Assessed value" used in figuring property tax liability and "market value" of any home that might sell are two different animals. In the depressed housing market where I live, I'd gladly sell my property for what the ASSessor values it.

Ditto. Try having a discussion about the value of your property with the ASSessor in this economy.
I went through this in '08 after the flood. Beating my head against the wall with these folks.

 

[BlackGun]

ghitch75 brings up something I like to point out to people, that property tax is payed twice a year unless you pay it through escrow in your mortgage.

I have always complained that escrow accounts for property tax should be illegal. Make people send in a check every six months and they will see what they really are paying. Most people with mortgages have no idea what they pay in property tax, so forcing them to figure out how to save up that money for a check to their county renter would really open up a lot of eyes.

Well Said...Thanks for posting! It is also an option when getting a mortgage to either roll into or separate from mortgage.

 

[chuckp]

What about the referendum scheme to bypass the property tax cap? Also the replacement referendum scheme to replace the expiring referendum scheme?

chuck