INDIANAPOLIS — A recent study commissioned by the Association of Indiana Counties found that, on average, the assessed value of homes has gone up by 15.5% across the state.
Experts say homeowners should start preparing themselves for a much higher property tax bill.
“I think most people will see an increase and they should start preparing for that,” said Andy Mattingly with Forum Credit Union.
The housing market boom that we saw over the past couple of years has sent home prices soaring. While the average home value was up by nearly 16 percent, it varies by county.
In Morgan, Johnson and Clinton counties, the average increase is more than 20 percent and higher values mean higher tax bills.
“Everyone I think should expect for their tax bill to be up somewhere between 7% and 12%,” Mattingly said.
The association said the drastic rise in home prices is something of an anomaly, according to the association’s executive director David Bottorff. It outpaced the increase in value on commercial and farm properties which means homeowners will pay more of the bill.
“Homeowners are actually picking up a bigger piece of the liability pie,” Bottorff said. “Which is why property tax bills are going up so much.”
Indiana University finance professor Doug McCoy said it’s not all bad news. He explained that property taxes are important to funding things that taxpayers use like schools, libraries and first responders.
“Even though our property tax and the amount we’re going to pay is going up we are basically being paid for them because our home value went up,” McCoy explained.
Tax bills should start going out by the end of march.
Mattingly said now is the time for people to start planning and budgeting appropriately.
“You just need to start thinking about whatever money you’ve been putting back for that,” Mattingly said. “Start putting a little bit more back not knowing exactly what the bills are going to be.”
Marion county is offering property tax relief with funds from the American Rescue Plan.
House Bill 1499 is right now making its way through the legislature to provide property tax relief to Hoosiers in 2024 and 2025. Experts said home values are expected to continue to rise until close to 2025.
You can find the full presentation from the Association of Indiana Counties here.