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How taxes will hit area homes (click)
By VICKI URBANIK The state on Friday certified the rates needed for this year’s delayed property tax bills -- and the results may come as a pleasant surprise for property owners who haven’t been hurt significantly by the latest changes in reassessment. The budget order approved on Friday by the Indiana Departemnt of Local Government Finance shows a decrease in the tax rates for all but nine of the 29 taxing districts in Porter County, including all tax districts in the Duneland community. Coupled with other tax changes this year, some property owners will end up with modest tax hikes while some will even get lower bills than in 2006. But a key factor is whether a property’s assessment has climbed, and by how much, as a result of trending, the most recent change in the statewide reassessment that attempted to bring tax values more in line with the market based on actual sales in a given community. Generally speaking, homes in highly desirable communities have been hit hard by trending. Homeowners who have seen their assessements soar can expect to pay higher tax bills, with the impact greater if they’re in one of the taxing districts with a higher tax rate. For example, a Chesterton resident whose home was assessed at $210,500 last year and whose assessment went up by about $35,000 this year will pay about $100 more in property taxes this year. That same homeowner in Valparaiso -- where the tax rate increased -- would get hit with a tax bill nearly $900 higher this year. On the other hand, a Chesterton resident with a much more modest home -- one whose assessment went up by only a few thousand dollars to $116,000 -- will actually pay about $225 less in property taxes this year. That same homeowner in Valparaiso would also get a lower tax bill, a cut of about $35. Meanwhile, in upscale communities like Dune Acres and the Sand Creek Country Club, assessments soared this year, which will result in heftier tax bills, even with the lower tax rates for their respective taxing units. In general, the tax rate figures released by the DLGF for Porter County are in line with those approved elsewhere in the state: Many of the rates for taxing districts are about the same or lower than last year, while the two state-funded tax credits in general are down, due in part to a cap on state funding for local property tax relief. But unlike many other counties, Porter County homeowners will enjoy a substantial increase in the part of the homestead credit that’s county funded. In accordance with state law, a portion of the County Economic Development Income Tax must go toward the county homestead credit. Last year, that credit rate was set at just 5.6 percent, but the state has set this year’s rate at 15.5 percent. That translates to a tax cut of $155 on a gross tax of $1,000. At least part of the increase in the county homestead credit can be attributed to the adjustment made by the state in the CEDIT distribution. This year, about $900,000 more has been generated by the tax that must be applied toward the homestead credit. A variety of other factors are affecting Indiana’s property taxes this year. Last year, state legislators approved a two-prong property tax measure that called for a one-time increase in the state homestead credit, boosting it from 20 percent statewide to 28 percent. But that higher tax break was just for 2006. This year, that state-funded credit will appear much lower on the tax bills. For example, the rate in Chesterton was 13.9 percent last year. This year, it’s 9.7 percent. The idea was that while the state homestead credit would be cut back to its previous level this year, the separate homestead deduction will increase from $35,000 to $45,000. If homeowners also have a mortgage and filed for the mortgage deduction, a total of $48,000 will be automatically deducted from their property’s net taxable value. To counter this year’s decrease in the state homestead credit, and in response to property tax horror stories stemming from trending, state lawmakers this year approved another measure that will result in homeowners receiving a tax rebate check later this year. Next year, that tax cut will be reflected as a higher state homestead credit. It’s unknown what will happen to this credit in 2009, since the $550 million approved by lawmakers this year toward the tax relief covered only this year and next year. Following the state’s approval on Friday, the Porter County Auditor will publish a detailed chart of all the tax rates for all taxing units. The following are the total tax rates that have now been certified by the DLGF for assorted area taxing districts, with the 2006 rates in parentheses. All numbers are rounded. Chesterton, Westchester Township: 2.59 (2.69). Chesterton, Liberty Township: 2.56 (2.65) Chesterton, Jackson Township: 2.54 (2.64) Porter: 2.74 (2.93) Burns Harbor: 2.23 (2.28) Dune Acres: 2.26 (2.46) Liberty Township: 2.02 (2.14) Jackson Township: 1.97 (2.09) Pine Township, Duneland Schools: 2.01 (2.14) Westchester Township: 2.04 (2.15) Valparaiso, Center Township: 3.27 (3.02) Portage, Westchester Township: 3.02 (3.04) Portage, Portage Township: 3.23 (2.84)
How taxes will hit area homes:
By VICKI URBANIK With the 2007 tax rates now certified, Porter County property owners can figure out their upcoming property tax bills by applying the rates to their new assessments. Here are some actual assessments and tax bills, comparing the 2006 numbers with this year’s. All numbers are rounded. In most cases, the homeowners shown qualify for the mortgage deduction in addition to the standard homestead deduction. The “tax bill” amount refers to the net property tax and does not include other fees tacked onto bills, such as the fee for the Recycling & Waste Reduction District or drainage assessments. Chesterton, east of Ind. 49 Assessment in 2006: $210,500 Assessment this year: $246,500 Tax bill, 2006: $2,853 Tax bill, 2007: $2,963 Chesterton, Morgan Park Assessment in 2006: $112,000 Assessment this year: $116,000 Tax bill, 2006: $1,240 Tax bill, 2007: $1,015 Chesterton, South Park Acres Assessment in 2006: $139,000 Assessment this year: $143,000 Tax bill, 2006: $1,680 Tax bill, 2007: $1,420 Chesterton, central Assessment in 2006: $166,000 Assessment this year: $171,000 Tax bill, 2006: $2,100 Tax bill, 2007: $1,840 Chesterton, Sand Creek CC Assessment in 2006: $408,000 Assessment this year: $519,000 Tax bill, 2006: $6,130 Tax bill, 2007: $7,030 Porter Assessment in 2006: $249,500 Assessment this year: $279,400 Tax bill, 2006: $3,820 Tax bill, 2007: $3,610 Burns Harbor Assessment in 2006: $167,000 Assessment this year: $181,000 Tax bill, 2006: $1,815 Tax bill, 2007: $1,796 Dune Acres Assessment in 2006: $494,000 Assessment this year: $683,000 Tax bill, 2006: $6,740 Tax bill, 2007: $7,990 Jackson Township Assessment in 2006: $403,000 Assessment this year: $440,000 Tax bill, 2006: $4,730 Tax bill, 2007: $4,330 Liberty Township Assessment in 2006: $127,500 Assessment this year: $148,000 Tax bill, 2006: $1,170 Tax bill, 2007:$1,135 Valparaiso Assessment in 2006: $395,000 Assessment this year: $452,100 Tax bill, 2006: $6,640 Tax bill, 2007: $7,930 Portage Assessment in 2006: $133,000 Assessment this year: $167,600 Tax bill, 2006: $1,573 Tax bill, 2007: $2,260
Posted 10/22/2007 |
