Property Taxes in Washington County, Indiana

Transcription

1 Property Taxes in Washington County, Indiana Larry DeBoer Tamara Ogle John Hawley July 2018 Purdue University Cooperative Extension Service is an equal access/equal opportunity institution. Follow us on

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3 Calculating Unit Tax Rates = Purdue University Cooperative Extension Service is an equal access/equal opportunity institution.

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5 Calculating Unit Tax Rates = Purdue University Cooperative Extension Service is an equal access/equal opportunity institution.

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8 Discussion Time: Tables 2 and 9 How does your total appropriations per capita compare to your neighbors, to counties with similar populations, and to the statewide percentiles? What appropriation categories contribute to total appropriations? How do your total levy and net assessed value compare? Is your county average property tax rate high, low or typical? Purdue University Cooperative Extension Service is an equal access/equal opportunity institution. Follow us on

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11 Discussion Time: Tables 1, 2 and 9 From Table 1, which units spend the most? Which units spend the least? Pick a unit that interests you. From Table 2, compare the unit s property tax rates to statewide percentiles. Are the county, city/town and school tax rates high, low or typical? What explains why the unit s tax rate is high, low or typical? Compare appropriations, the tax levy and assessed value to the statewide percentiles for the unit s type. Discuss your findings with your group. Purdue University Cooperative Extension Service is an equal access/equal opportunity institution. Follow us on

12 Units and Tax Districts Purdue University Cooperative Extension Service is an equal access/equal opportunity institution.

13 Units and Tax Districts Purdue University Cooperative Extension Service is an equal access/equal opportunity institution.

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16 Discussion Time: Table 3 & Table 9 Which districts are high and low in your county? What is your own district rate? How do these district tax rates compare to the state percentiles at the end of Table 9? What unit rates contribute to this? Purdue University Cooperative Extension Service is an equal access/equal opportunity institution. Follow us on

17 Tax Caps in the Indiana Constitution Article 10, Section 1, Parts f, g, h Tax caps limit tax bills to percentages of gross assessed value 1% Homestead 2% Other Residential/Farmland 3% Business Real/Personal Taxes passed by referendum are exempt from caps Lake and St. Joseph Counties get ten years to adjust Purdue University Cooperative Extension Service is an equal access/equal opportunity institution.

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21 Tax cap credits and the remaining levy are divided among the units in a tax district based on shares of the unit s tax rate in the district total. Purdue University Cooperative Extension Service is an equal access/equal opportunity institution.

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24 Property Tax Relief Income Tax Rate Income Tax Revenue 0.250% 1,170,016 Homesteads Non-Hmst Res Relief Allocation LIT Relief 54% 627,947 46% 542,069 Levy by Property Type Tax Bill Credit Percent Homesteads 4,743, % Non-Hmst Res 3,663, % Purdue University Cooperative Extension Service is an equal access/equal opportunity institution.

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27 Issue: Declining Assessed Value of Farmland Purdue University Cooperative Extension Service is an equal access/equal opportunity institution.

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29 Calculation of the Base Rate for an Acre of Farmland Preliminary Assessment Year 2018; Tax Year 2019 NET INCOMES MARKET VALUE IN USE Year Cash Rent Operating Cap. Rate Cash Rent Operating Average % 3,656 2,292 2, % 4,215 7,045 5, % 4,298 3,585 3, % 4, , % 3,619 1,569 2, % 3, ,994 Average Market Value in Use $2,640 Existing Base Rate $1,850 Percent Change from Current Rate 43% Purdue University Cooperative Extension Service is an equal access/equal opportunity institution.

30 Calculation of the Base Rate for an Acre of Farmland Final Assessment Year 2018; Tax Year 2019 NET INCOMES MARKET VALUE IN USE Year Cash Rent Operating Cap. Rate Cash Rent Operating Average % 2,313 1,450 1, % 2,550 4,263 3, % 2,563 2,138 2, % 2, % 2, , % 2, ,256 Average Market Value in Use $1,610 Previous Year $1,850 Percent Change -13.0% Purdue University Cooperative Extension Service is an equal access/equal opportunity institution.

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33 Calculating Unit Tax Rates = Purdue University Cooperative Extension Service is an equal access/equal opportunity institution.

34 8. WASHINGTON COUNTY HOMESTEAD TAX BILLS, 10% RISE IN TAX RATES Madison Township Madison Township Salem City Salem City Gross Assessed Value 83,000 83, , ,000 Homestead Standard Deduction 45,000 45,000 45,000 45,000 Remainder 38,000 38, , ,000 35% Supplemental Hmstd. Deduction 13,300 13,300 42,350 42,350 Mortgage Deduction 3,000 3,000 3,000 3,000 Taxable Assessed Value 21,700 21,700 75,650 75,650 District Tax Rate Gross Tax Bill ,806 3,086 Total LOIT Credit Rate 13.75% 13.75% 13.75% 13.75% LOIT Credits Tax Bill after LOIT Credits ,420 2,662 Tax Cap Rate 1% 1% 1% 1% Tax Cap ,660 1,660 Tax Cap Credit ,002 Change Net Tax Bill ,660 1,660 Change 32 - Purdue University Cooperative Extension Service is an equal access/equal opportunity institution.

35 Property Taxes in Washington County, Indiana Larry DeBoer Tamara Ogle John Hawley July 2018 Purdue University Cooperative Extension Service is an equal access/equal opportunity institution. Follow us on