Hot Topic:  The Taxpayer and the Property Tax

Read Your Property Tax Bill

In 2001, Indiana local governments collected about $5.1 billion in property taxes.  If you own a home or a business, most likely some of that money will come from you.  You, or your bank, will receive a bill from the County Treasurer.  The bill will show a lot of numbers.  Most importantly, it shows how much you owe.  The Treasurer will be wanting your payments in two installments, paid in May and November. 

All the local units of government in which you live will share this money.  The county government will get some, the township will get a little, and the school corporation will usually get a lot.  If you live in a city or town, a library district, or another special district (for solid waste management, transportation or fire protection, or other purposes), these units will get some of your money too.  Even the state government gets a small part.

Your property tax bill can tell you a lot about why you pay what you pay, and what happens to the money.  On most bills you will see:

·        Parcel and duplicate numbers identifying your property;

·        The name of the taxing district in which you live;

·        The gross property tax rate for that taxing district, in dollars per $100 assessed value;

·        The homestead credit percentage rate for the county;

·        The property tax replacement credit rate for the taxing district;

·        The gross assessed value for your land and buildings;

·        You deductions and exemptions from assessed value, and the net assessed value remaining;

·        The gross tax owed, the tax credits that reduce this payment, and the net tax payment; and

·        A breakdown of the local governments that receive your payment.

And, in 2003, everything will change.  Well, not everything--the tax bills will still look the same, it's just that the numbers on the tax bills will all be different.  That's because of tax restructuring and reassessment.

You can learn a lot from your property tax bill.  Or you could, anyway, if you understood all the codes and jargon printed on it.  Some of the bill is obvious; much of it isn’t.  Here’s a guide to help, with some notes on changes coming in 2003.

Want to know more?  Click here.