By VICKI URBANIK

As expected, Porter County homeowners will get a break  --  and for some, a pretty sizeable one at that  -- on their final 2008 property tax bills.

The Indiana Department of Local Government Finance has re-issued the 2008 budget order for Porter County’s taxing units. The order finalizes this year’s budgets and sets the rates that county officials will use to issue  this year’s final property tax bills, which are expected to go out by early December.

Tax rates are going down in most taxing districts. For example, the total rate for Chesterton in Westchester Township has been set at 2.57, compared to 2.59 last year.

 More significantly, though, the state’s homestead credit is up sharply, due to the extra money that state lawmakers set aside this year for tax cuts for homeowners. The state homestead credit varies by taxing district; in Chesterton, for example, homewoners will get a nearly 17.9 percent cut in their tax bill due to the homestead credit. Last year, the credit rate was just 9.74 percent.

But not as positive for homeowners is that the county-funded homestead credit has been set lower than last year --  from 6.07 percent in 2007 to 5.58 percent this year.

With the order now final, Porter County officials can move forward with issuing the property tax bills, which are about a month later than in a normal tax year. The Porter County Auditor’s office will publish a detailed list of all final tax rates that appear in the budget order.

The DLGF is making available to taxpayers a property tax calculator with which they can estimate their final 2008 tax bills. The calculator can be accessed online at www.in.gov/dlgf. Taxpayers need to know their property assessed value and the deductions they recieve (homeowners get the standard homestead deduction and, if they have a mortgage, may also get the mortage deduction. Other deductions include those for qualifying seniors and veterans).

Because of the Indiana Legislature’s decision to set aside $620 million more this year for state homestead credits, tax bills are going down for many Hoosier homeowners.

For a home assessed at $150,000 in Chesterton in Westchester Township with a mortgage deduction, the total 2008 tax bill will be $1,602. Assuming that the home’s assessed value was the same last year, the property tax bill in 2007 was $1,714 -- meaning that this year, the homeowner will enjoy a tax savings of about $112.

For a home assessed at $300,000 in Chesterton in Westchester Township with a mortgage, the total 2008 tax will be about $3,958.38. Last year, that same assessed home had a tax bill of $4,235.

This year’s tax bills are a bit later that in a “normal” tax year, when the second installment is  typically due on Nov. 10. Last year, the bills were even later, prompting taxing units countywide to borrow to meet cash flow needs. To avoid that same kind of heavy borrowing, Porter County officials agreed to  issue provisional bills this past summer based on the 2007 final tax bills. The true amount will be reconciled with the bills that are issued in the coming weeks.

Because this year’s tax is going down for many homeowners, the reconciling bills they’ll get in December should be lower than what they paid this summer, assuming their assessments haven’t changed.

Taxpayers in Pine Township, namely those in the town of Pines, Beverly Shores, and the portion of Pine Township in the Michigan City Schools, will get their tax bills later than the rest of Porter County.

The DLGF did not certify the rates for these units, because, by virtue of the Michigan City Schools, they are impacted by the reassessment underway in LaPorte County, which is much farther behind in the 2008 tax work than most other counties.

The DLGF originally issued Porter County’s budget order Wednesday afternoon, but reissued the order late this morning because the original order left out the county’s homestead credit.

DLGF Commissioner Cheryl Musgrave issued a  phone call of thanks to the Chesterton Tribune for catching the ommission.

 

Posted 11/14/2008