Taylor-Brown Real Estate Talks

Thank you for revisiting you can still subscribe to my RSS feed. As Always Thank You for visiting!

In Indiana, the property tax that is paid on a home, land, building, business machine, or product for sale is determined by the assessed value that the assessor assigns to the asset.  Once the assessed value is determined the amount of property taxes paid on that value is determined by the tax rate for the city in which the property is located.

The tax rate is a very important part of the equation because the tax rate is determined by the budget the town officials believe is needed to run the city.  Items that are needed to run a city vary, but most city rely on property taxes to provide the following items to the citizens of that city:

• police
• fire safety
• library
• school
• health care department
• trash pick up

Some cities have all of these items on the property taxes making the cost to run the city very high.

Now, that the basis of what is included in the property taxes have been discussed.  Let’s look at the changes due to re-assessment of property taxes in Indiana.  In December 1998,  the Indiana Supreme Court ruled that the assessment value that was being used was unconstitutional, and the state needed to convert to market value.   Market value is thought to be more uniformed and fair.  It also satisfy the Supreme Court.   However, the change would cause an unfair change in property taxes adjustment to the homeowner.  The homeowner would see an increase of up to 33% and the business owner taxes would see a decrease of up to 18%.

In an effort, to reduce the burden that the reassessment was having on the homeowner, the Indiana General Assembly develop a bill to protect the homeowner.  The bill was to increase the sales tax to offset the property tax burden.  However, the bill did not solve the entire problem, and now the state is considering an uniformed flat rate of one percent of assessed value for homeowner, two percent of assessed value for landlord or investor, and three percent of assessed value for business owners.

Real Estate Investor Related Articles

Protecting Your Investments - This article discusses the business entities that are available that are available for investors to protect their personal assets when buying and holding properties.

Property Tax Related Articles

Indiana Property Tax Appeal (Part 2) -Filing a property tax appeal can be difficult.  This article gives links to the forms needed to file the appeal and a video tutorial on filling the forms out.

Related articles on property taxes

• Talk turns to tax hikes (theolympian.com)
• States and Towns Lean on Taxpayers (online.wsj.com)

Originally posted 2008-12-23 15:35:34. Republished by Blog Post Promoter

• Home Improvement Tips - Latest News Image by Getty Images via DaylifeThe latest tips in home improvements: Selecting An Indoor Water Fountain | Free Home Improvement TipsNothing adds a way of tranquility and balance to a home additional than a water fountain. They're straightforward to put in and can quickly become the focus. Save Money On......
• Are the Reforms Governor Daniels Proposed Going to Affect You? The Indiana general assembly will be in session soon.  Governor Daniels is planning to outline several proposed reforms.  Will these reforms affect you? Let's examine. Below are the outline of the proposed reforms: Governor Daniels is proposing replacing the county commissioner with one county executive. Governor Daniels is proposing combining......
• Outraged Over Property Taxes Why isn't the Indiana property tax assessment making front page news?  I am sure it is making front page news with all the citizens of Porter County who on March 27 is going to have to pay higher property taxes. I am appalled that the local paper has given little......
• Property Tax Appeal Review (Video 1 of Section 1) The objective of the series of videos that follows in the next couple of days is an evaluation of the the findings of property tax appellate court. This evaluation is not a guarantee that you will be successful with your appeal for an assessment in your property taxes, but it......
• IDOT Has Given Chicago Suburbs 3 Powerful Reasons to Prosper Image by Getty Images via Daylife When it comes to traveling from Northwest Indiana to O'Hare, many of us cringe because of the traffic congestion.  Well, traveling in Chicagoland may get a great improvement.   On December 9, a proposed alternate route to O'Hare was announced by the Illinois Department......

• Health Care Reform: Experiences with Canadian and American Health Care This sort of a post – discussing health care reform, socialized medicine, and the health care bill – requires a...
• 55 Pounds in 10 weeks… 2.3 Pounds this Week In all honesty I had expected to lose just a touch more weight this week.  I was pretty good on the...
• The Health Care Domino Effect No matter your personal feelings on Obama's health care "reform" initiative, do not be fooled by what is happening on...
• Money, Muffin Tops and the Future of Health Care Costs Yes I know that title is a little strange for a Mr. ToughMoneyLove Monday morning article but bear with me....
• GOP Forces New House Vote on Health Care Bill [/caption] Republicans succeed in forcing a change in a measure altering Obama's newly enacted health care overhaul, meaning the bill...