Part One of Five – Property Tax Discussion

Frequently Asked Friday: Let’s Talk Property Taxes

Property taxes are everywhere in the conversation right now, and I keep hearing questions about what they are, how they’re figured, and what exactly we’re paying for.

So for the next few Fridays, we’re going to talk about it. I’m not going to tell you how to vote or what to think. I just think it’s easier to have an opinion when we understand what we’re talking about.

So let’s start really simple.
Your property has an assessed value. After any deductions that apply to you, that leaves your taxable value.
A local tax rate is applied to that amount, and then things like credits and Indiana’s property-tax caps help determine what you actually owe.
That’s the simplified version. There are more moving parts—we’ll get to those.

Now, where does the money go?

This is one I think gets confusing. When you pay property taxes in Kosciusko County, all of that money doesn’t just go to “the county.” Depending on where you live, your property taxes help support different local taxing units—county government, your city or town if you live in one, your township, schools, libraries and other local services. Think roads and infrastructure, police and fire protection, libraries, local government and portions of our school system.

So when we’re talking about changing—or even eliminating—property taxes, there’s another question that has to be part of the conversation: What replaces the money? Because for every action, there is a reaction.

We’re going to work our way through this together over the next few Fridays—one piece at a time and in plain English.

Next week, let’s tackle something almost every homeowner has wondered:
How did they come up with THAT assessment?
No politics. No telling you what to think.
Just information.
Your friend who happens to be a REALTOR®