Indianapoils Property Tax Reform

What seems like forever ago, I wrote this post about the totally screwed up tax situation in Indiana and especially Marion County.  After much haggling and debate, our beloved Indiana lawmakers finally passed some meaningful tax reform.  This past Friday the State House and Senate voted into law Act 1001 which, theoretically, will change Indiana’s tax system forever. 

What does this mean for my property taxes?

-    This year the average tax bill will drop by an average of 30% thanks to additional homestead credits.
-    In 2009, your tax bill will be no more than 1.5% of the assessed value of your home.
-    2010 and on your tax bill will be no more than 1% of the assessed value.
-    Rental properties and farms are capped at 2% and businesses 3%.

These tax breaks do come at a price however; the state sales tax will be raised from 6% to 7% starting April 1st and local income taxes could, and probably will rise as well.  IMHO, I think this increase in other areas is worth it for property tax reform.  As we have seen in the news recently, real estate is a major sector of the overall economy and we cannot afford to stifle growth in this area by saddling homeowners with an unfair share of the tax burden.  Hopefully this will just another piece of the puzzle to get the Indianapolis real estate market back on track. 

 

• Rate this Post!

  Select Your Rating:

  • 5 Stars (Excellent!)
  • 4 Stars
  • 3 Stars
  • 2 Stars
  • 1 Stars (Poor)

• Share this Post

  Share With A Friend:

  Your Name Your Email

  Friend's Name Friend's Email

  Optional Message

  Send

• Print
• Social Bookmarking

  Add to Bookmarks: