Categories Real Estate » Property Tax

Indiana Property Taxes – 16 Key Features

admin — Sun, 13 Mar 2011 01:37:28 +0000

Indiana Property Taxes are quite different from the other property systems. Here some of its key features that would help you understand them better.

1. The Department of Local Government Finance administers the Indiana Property Taxes.

2. These are collected by the local county treasurers.

3. Their value is assessed on the basis of the county’s assessors and the property’s fair market value as per the determination of the township.

4. In Indiana, over 99% of the Indiana Property Taxes received as revenues are diversified towards the local community.

5. The Indiana Property Taxes are used for various social causes like:

i. Funding the school systems

ii. Local townships

iii. City & county budgets

iv. Only a small part of it goes to fund the libraries and state governments.

v. Over 50% of these funds generated are diverged directly towards the schools.

6. These taxes are always paid as arrears – that is the amount you pay at present is actually for the year that has gone away.

7. The Indiana Property Taxes get due twice very year that is – May 10 & November 10.

8. This tax is evaluated on the basis of assessment made by the local tax assessors regarding the property’s current assessed value. This evaluation is determined every year on March 1.

9. The County officials then add all the assessed values of the property together in a county. Further they subtract the applicable deductions in order to determine the net assessed value of the county.

10. Based on the projected revenues for the county, the Indiana Department of Local Government Finance then sets a total amount of money that the government units in the county would spend.

11. Just like the other taxes, sometimes you can get some exemptions from a certain part of the property taxes. For instance the property taxes are limited for the senior citizens, veterans & homeowners. They could claim a homestead exemption against their primary residence only.

12. The local county government office is the right place to get guidance and apply for the exemptions. They would also update you on the tax limit status.

13. After you have made the application, it is the government’s job to verify the eligibility. Henceforth, they notify you regarding the acceptance or denial of the exemption request.

14. In case you wish to contest on the assessed value of your property or home, the right place to make the appeal is through the county and/or the local jurisdiction.

15. In this case you would have to attend a hearing where you would get an opportunity to state your stand and explain as to why you believe that the assessed property value is very high. Then the tax assessor would present his view as to how they derived that figure. The decision would lie in the hands of the appeal board. They make the decision within the time period of 120 days and thereafter notify the taxpayer.

16. Indiana property tax rates range somewhere in the middle in contrast with the other states. The range is 6.67% per $ 1000 to 15.11% per $ 1000 of the home’s value.

What you Need to Know About Property Taxes Before Buying a Home

admin — Sun, 20 Feb 2011 17:22:03 +0000

1. Why is is important for potential home owners to know what the property taxes will be on a house before they buy it?

It is very important to potential home buyers to know about the property taxes on a house because:

- Most mortgage companies will make the property owner escrow the property taxes and therefore it becomes part of their monthly payment which needs to be factored in to access affordability.

- Property taxes can rise due to reassessment of value after a home is purchased.

- Property taxes differ from town to town which allows consumers to compare them to get the best housing value for their dollars.

2. What factors are used to assess property taxes?

Property taxes are commonly assessed based upon three factors:

-The assessed value of the home as determined by the local government tax appraiser

-The budget of the local government

-A mill rate – a dollar amount assessed in tax for every thousand dollars of assessed value which is determined by dividing the total budget amount over the total assessed value amount of a town. For example a mill rate of $20 on a 250,000 assessed value would equal $5,000. ($250,000 divided by 1,000 multiplied by $20)

3. How often are property taxes assessed?

Property taxes are assessed every year based upon the budget of the local government. Depending on the growth of value in the housing market of an area, the assessed value of home may be re-assessed every year or every few years in slower growth areas.

4. I am building a house. How are property taxes on new construction handled?

Property taxes on new construction are based upon the assessed value of the land until a certificate of occupancy for the home has been issued by the local government. Once this occurs the property will be re-assessed as a home for the next complete property tax billing cycle.

5. Are there differences in the amount of property taxes in different markets?

Property taxes can vary widely from market to market based on various factors that affect the budget of the local government such as number, condition and quality of the area’s schools, police force, fire department, recreational areas and other services provided by the local government. Property taxes can also vary widely within markets due to the different needs of different communities. An example would be a town that needs a new high school would have higher taxes than the neighboring town whose high school was built ten years ago. Also, within the same town, a colonial style house may pay more taxes than a ranch style home because the colonial is assessed at a higher value.

6. If I disagree with the amount of my property taxes, is there anything I can do about it?

Property taxes are generally disputed because of the assessment of the property value. While the procedures for dispute differ from area to area, generally you request that your home be re-assessed based on the assessed value of comparable homes in your local area. See question 8 for further clarification.

7. Where does the money I pay in property taxes go to?

Money collected from property taxes goes to pay for the services provided by the local government such as schools, police, fire department, sanitation, recreation and other services. Property taxes are necessary because without them, local governments would have no way to fund the services people want them to provide without federal or state assistance (which would be a disaster, by the way).

8. I just got a large increase in the assessed value of my home. What should I do?

Any large increase in assessed value of your home should serve as a red flag to prompt you to dispute an assessment. Generally speaking, you would want to research what comparable homes in your area were assessed at to see if a marked difference was apparent. The difference would constitute a legitimate dispute.

9. Is there any type of limit on the amount my property can be reassessed for?

Some states and local areas have laws that cap the amount that a property can be reassessed for. For example, Florida has a homestead law that caps reassessment of the value of primary residences to 3% a year. This was designed to keep senior citizens on fixed incomes from being taxed out of their homes. Good luck on this article and feel free to contact me anytime you need information on anything to do with real estate or taxes.

Property Tax Loans in Texas – A Funding Solution That Benefits All Parties

admin — Sun, 21 Nov 2010 01:28:42 +0000

http://www.propertytaxfunding.com/

What is a Texas property tax loan?

A property tax loan is a loan made to a property owner to pay the taxes on their real property. The loan is secured by a lien against the property that the taxing unit transfers to the lender. The loan pays a property owner’s complete property tax liability, including any penalties, interest, and fees. The loan is funded by a third party lender, which is referred to as the Tax Lien Transferee. The transfer does not create a new lien, but merely transfers the taxing unit’s lien to the Transferee.

What are the advantages for the Property Owner?

Helps property owners protect their valuable real estate. Immediately stops the collection process by the taxing entity and eliminates any further penalties and delinquency fees. The tax loan provides flexible payment terms and repayment schedules designed to meet the borrower’s needs. Allows commercial property owners to invest their capital into their business instead of making a lump sum property tax payment. Creates time to overcome the financial problems that caused nonpayment of their property taxes.

What are the advantages for the Taxing Unit?

Allows for the taxing unit to collect revenue immediately. Reduces the burden and expense of collection and foreclosure. Improves overall collection rates, which decreases the burden on those taxpayers that do pay their taxes on time.

What are the advantages for the mortgage company?

Avoids creating an escrow account for the property owner. Avoids the expense of modifying or restructuring an existing loan. Eliminates the possible foreclosure by the taxing entity.

How do I learn more about Property Tax Loans in Texas?

You can also learn more about Texas property tax loans by contacting Property Tax Funding at http://www.propertytaxfunding.com/ or calling a loan officer at 877-776-7391.