Property Taxes and Assessed Value Information
How Does Assessed Value Affect My Tax Bill?
An increase in the local assessed value (AV) can impact property taxes. Indiana is similar to other states where property values are determined using mass appraisal techniques. With mass appraisal, your property is compared to other properties in your area with regard to age, grade, and condition. Finally, in a process known as annual adjustment, or rending', each year real property sales data is used to determine if the value of properties in your area should change to match the market value found in the sales of recent properties. (Prior to 2002, property was reassessed every 5 to 10 years. That left taxpayers with a large change in their assessments between reassessments, which often led to sudden increases in property tax bills.) (Source: DLGF website)
See the example below.
Tax Savings Tip
There are new deductions and credits that could help taxpayers save money on property taxes. Under (IC 6-1.1-20.6) certain individuals may qualify for an Over 65 Circuit Breaker Credit. Eligibility is subject to age, income, AV value, and residency requirements. The Department of Local Government Finance (DLGF) issued the Legislation Affecting Property Tax Deductions and Exemptions memorandum on June 21, 2019. Senate Enrolled Act 280 amended this memorandum. Please contact your tax professional if you have more questions about these credits and deductions or see the links on this page.