How Are Property Taxes Done in Indiana?

In Indiana, property taxes are assessed and collected by county governments.

In Indiana, local county governments collect property taxes from businesses and homeowners. Property tax rates are adjusted each year, with a state agency calculating the rates according to assessed value of all property in the county and projected budgets. The taxes go to spending on schools, roads, emergency services, public salaries, administrative costs and community improvements.

Assessments

The property tax levied on a home or on land in Indiana is based on the assessed market value of the property. Each year on March 1, an assessment is completed by the local assessor's office. The county then calculates the total assessed value of all nonexempt property within its jurisdiction.

Tax Rates

Spending by the counties in Indiana is controlled by a state agency -- the Department of Local Government Finance. This agency sets a limit on spending based on an estimated projected amount of revenues. The allowance for spending is divided by the assessed value to arrive at the rate of taxes to be paid by property owners in each county. Tax rates may rise or fall each year.

Payments and Delinquencies

In Indiana, taxes are payable in two installments each year: on May 10 and November 10. The taxes paid in one year are credited toward the tax levy of the previous year. Thus, payments made in 2010 actually go toward the tax bill generated in 2009. Delinquent taxes are assessed a penalty. If taxes are not paid for a year, then the county may seize the property and sell it at a public tax-sale auction. A winning bidder pays the late taxes and files a lien, while the original property owner has a limited period of time in which to clear the lien by paying the tax obligation.

Deductions

Property owners in Indiana can take advantage of several deductions in the assessed value of their property. Deductions are available for homesteaded property, property in an enterprise zone, for energy-saving improvements on property, for certain investment property and the like. Taxpayers must apply for these deductions by the end of the year but only need to apply once for the same deduction for the same property. The application applies to the tax due for the following year. If the property changes hands and this results in a new title holder, then the deduction must be applied for again. Information on deductions is available from the county auditor.

Appeals

Property owners in Indiana may contest the assessment of their property. The process begins at the county assessor's office and with an informal conference. Property owners may bring further appeal to the Indiana Board of Tax Review. Property owners may also contest errors, omissions or incorrect calculations on the assessment. These appeals can only be done on the current year's tax levy, not on that of prior years.

References

• IN.gov: General Property Tax Information
• IN.gov: Department of Local Government Finance
• Indiana Local Government Information Website: How to Read Your Property Tax Bill