When the Carmel City Council passed its 2016 budget in October, it included a tax rate of 71.43 cents per $100 of assessed property value for homeowners, only about a penny increase from the 2015 rate of 70.07 cents.
But now that the property tax bills have reached Carmel mailboxes, residents are finding out that the actual rate for 2016 is 83.56 cents per $100, or 19 percent greater than the rate attached to the budget. For a home valued at $300,000, that’s about $400 more a year in city property taxes.
Two new reports have found property tax caps have kept more money in taxpayers’ pockets, but they’ve also forced local governments to generate revenue through new fees.
According to the Indiana Fiscal Policy Institute, property tax caps have cost local governments more than $760 million in potential revenue since they were implemented in 2009.
INDIANAPOLIS — Reports that say Indiana’s aging industrial cities are hit hard by a state-imposed limit on local property taxes don’t surprise Hammond Mayor Tom McDermott.
He sees the impact every time a snowstorm hits his city in the Chicago snow belt.
Indiana’s property tax caps continue to squeeze many counties and local governments, a burden some would like to ease by asking non-profit groups that own tax-exempt properties to make monetary contributions to local governments.