2024 - Property Taxes part 2 - the Braun/Beckwith Proposal
On the property tax plan released by, mmmm not sure if it is the Republicans or the Braun/Beckwith campaign, but anyway....
First of all, please note there are state guidelines for figuring property tax assessments which were passed by the Republican SUPERMAJORITY legislature after the State Supreme Court ruling that they had to base assessment values on market price rather than replacement value as that wasn't fair to all property owners.
The legislation is set up in a manual which is here: https://www.in.gov/.../2021.../Assessment-Manual.pdf
Local assessors have state guidelines to follow. But delve down into the manual and find the complicated formulas that the assessors have to use to calculate assessment values. Notice the terminology at the top of the page that this is a "simple example."
So the first thing that needs to happen is that this calculus needs to be adjusted so that it is more fair to homeowners. This proposal doesn't bother to try to look at that.
The second thing is that the proposed Braun/Beckwith plan does not affect the overwhelming majority of Hoosier homeowners to a great extent. Most of them will be closer to a $15 savings rather than a the savings needed by most Hoosiers. So basically, it's a bag of beans or bait and switch to be sold to voters. This is much like their previous "property tax relief" which they have passed to give seniors a $200 credit (IF they didn't receive any other credit which most did, so very few benefitted) or raising the cap for disabled vets assessment values (which the overwhelming majority already received the benefit, so very few benefitted), or the tax credit for your patio, pool, and gazebo. Basically, it looks good, but very few will actually receive the benefits, and certainly not the people who are in danger of losing their homes because they can't afford the property taxes.
The third thing that is very concerning about this is that it fails to take into account what will happen to local government and schools with this sudden decrease in funding. This is the money that we keep our school buildings maintained with, the county roads paved, the little cemeteries maintained, the emergency services funded, and so on. That funding will have to be replaced. Most likely what happens here will be that property taxes will be raised elsewhere. In case you didn't know this, in 2010, Indiana passed a constitutional amendment which capped property taxes at 1% for homestead property, 2% for rental residential and farm ground, and 3% for all other property including businesses. Homestead property is at or near the cap in most counties. But the other properties are well below the cap. Most counties are at 1.3-1.5%. for the 2 & 3% cap property types. More than likely, the counties will raise the property taxes on those properties which will hurt farmers, the 30% of Hoosiers who rent their homes (and indirectly pay those property taxes through their landlords), and businesses.
I do not think this plan was well thought through at all. If it does pass, it will further devastate our local rural communities. I'm not sure it is viable though. I think it is more political eye candy to make it look like the Republicans are doing something on property taxes to attract voters and shut down people like me who want to provide real relief that leaves our local governments and schools sustainable.
