Indianapolis Area Real Estate Blog

The Tax Man Cometh To Indy Pay Your Dues Or Get Out!

The conclusion of last weeks General Assembly did not create relief for Indiana Home owners. Instead, some homeowners are burdened with exorbitant tax increases which threaten their ability to keep their home. Some simply will not be able to afford their homes any longer. But, alas, the tax man will be paid!

 There is a silver lining, though, in the form of a credit or rebate. About this time, you should be jumping up and down with joy just thinking about receiving a credit. But wait...... dont over-exert yourselves just yet- we don t know how much or when the credit will be given. This rebate is unlikely to make a dent in the real cost of property taxes. It certainly won t help those who struggle to make ends meet now. Consider what an extra $100. monthly could mean to someone on a fixed budget.

Another concern is how the assessed values are calculated. I have current clients who are looking at homes. Some of these homes are assessed at $50,000 more than the listed price. One of my listings has an assessed value of $25,000. more than we have it listed for. If this is widespread, what will be the result for next year s assessments? My guess is, those rebate amounts will be adjusted. I have been told and believe one should not complain about a situation, unless you have a possible solution. So heres my 2 cents!

First, I believe the State should redefine and regulate the way assessments are calculated. You can not just apply a number to a homes value without some documentation to back it up. Secondly, I think there needs to be some control and accountability on government spending. If homeowners are footing the bill, we should know where the additional tax is being spent. Third, whether you agree or not, is to simply raise the sales tax. By raising the sales tax, those who can afford luxury, pay more, those who can not, pay less.

None of these solutions will provide relief for the persons who can not afford the increase. I anticipate we will see a resurgence of home foreclosures in Indianapolis on. Too many foreclosures will force property values down, which in turn, affects the amount of taxes collected. At the end of it all, we will be no better off! The taxes will be paid, though, whether by the homeowner or the bank that has to take the home back!

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