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General Property Tax Information

Property taxes in Indiana are administered at the local level with oversight by the Indiana Department of Local Government Finance. More than 99 percent of the revenue generated by property taxes remains in the community in which they are collected.

  • Learn where tax dollars are spent in Indiana

2006-2007 County Property Tax Summaries - At the direction of Governor Daniels, the DLGF developed summaries to provide taxpayers information about property taxes in their counties. These summaries are the first compilation of this information by county in Indiana.

2007 - 2008 Legislative Services Agency County Property Tax Changes
Legislative Services Agency developed the following analysis to determine how the major property tax reforms passed during the 2008 legislative session affected tax bills in each Indiana county. To see the full listing of available studies, click HERE

Property Tax Overview

Property taxes represent a property owner’s portion of the local government’s spending in a given year. Property taxes in Indiana are paid in arrears, meaning the taxes paid in the current year represent the taxes owed for the previous year. Taxes in Indiana are due annually in two installments - May 10 and Nov. 10.

A property’s assessed value is the basis for property taxes. Annually local assessing officials assess the value of real property on March 1 based on market value in use of the property. County officials add all of the assessed values of property in a county together and subtract the applicable deductions to determine the county’s net assessed value. The Indiana Department of Local Government Finance sets the total amount of money government units in a county can spend in a year based on projected revenues for the county. This total allowed expenditure is divided by the net assessed value to determine the tax rate. Most simply, this can be explained as:

TAX RATE = Estimate of funds to be raised/net assessed value

The tax rate is multiplied by the assessed value after all deductions are subtracted from each property. For a complete listing of deductions and eligibility requirements, click HERE. The county auditor then applies the state homestead credit and property tax replacement credit to arrive at the amount the property owner will pay in taxes to the county.

Property owners can estimate the property taxes for new construction by adding the cost of the land and improvements together and multiplying by the tax rate. Current tax rates are located HERE. County Auditors can provide the most accurate information on individual property taxes. A searchable listing of county auditor contact information can be found by clicking HERE.

Understanding your 2008 tax bill

In March 2006, the Indiana General Assembly passed a law requiring all tax statements be concise, clear and easily understood by the average taxpayer. The law required that the new form be used for 2008 bills (taxes due after December 31, 2007.)

The new statute requires that all tax bills be the same for every county. The net effect of the revised TS-1 and its inclusion with the taxpayer’s property tax bill is that the taxpayers will have significantly more information regarding their property tax bill; the information will also be of a higher quality than was the case prior to this legislation.

Prior to the passing of this legislation, the process for sending/receiving the TS-1 was not consistent, with some taxpayers receiving their property tax bill and TS-1 separately. Further, taxpayers often received neither as they were sent to the lien holder for the property in question.

One of the most important changes is that the TS-1 will now accompany the property tax bill itself, whereas in the past, it was mailed separately.

In terms of actual information changes, the new form will be much more proactive in providing details about where and how property tax dollars are spent; it will provide a comparison of previous tax year vs. current tax year assessed values and property and special assessments liabilities; as well as give the property owner guidelines regarding homestead and other property tax deductions and the assessment appeals process.

To view a sample of the new form, click HERE.

What does the “percent difference” column mean?

The “percent difference” column reflects the percentage of the change in the taxpayer’s total bill attributable to each taxing unit. These percentages, when added together, will total 100%.

For example, let’s say that your tax bill decreased by $50. (See Example A.) Of this $50, $30 was the reduction for your school corporation, $10 in reduction for your county, and $10 in reduction for your township. Column 13, then, would reflect percent differences of 60%, 20%, and 20%, respectively ($30/$50, $10/$50, and $10/$50.)

What this means is that, of the $50 decrease in your tax bill, $30 (or 60%) of the decrease is attributable to your school corporation.
Example A
Taxing Authority Last Year Tax This Year Tax Tax Difference Percent Difference
County
$100.00 $90.00 -$10.00 20.00%
Township
$100.00 $90.00 -$10.00 20.00%
School
$100.00 $70.00 -$30.00 60.00%
Total Tax
$300.00 $250.00 -$50.00 100.00%

If the overall tax bill decreased in the total column, but a particular taxing unit’s amount increased, the resulting value based on the division would be negative. Let’s return to our example above, but instead of the township amount going down by $10, it went up by $10. (See Example B.) The math would then be as follows: $30/$30, $10/$30, and -$10/$30. The percentages would then be 100%, 33.33%, and -33.33%, totaling 100%.

Example B
Taxing Authority Last Year Tax This Year Tax Tax Difference Percent Difference
County
$100.00 $90.00 -$10.00 33.33%
Township
$100.00 $110.00 $10.00 -33.33%
School
$100.00 $70.00 -$30.00 100.00%
Total Tax
$300.00 $270.00 -$30.00 100.00%

This calculation is designed to show how each component of the taxpayer’s bill interacts with one another. While this calculation provides some insight to taxpayers, it is useful to bear in mind that percentages (just like any other summary calculation) may or may not be the best way to portray the information, and can vary greatly based upon the nature of the data. In light of this, most taxpayers may find it useful to refer to the actual levy amounts for the current year, the prior year, and the amount of change between them and to judge for themselves the impact a particular taxing unit has on the overall bill.