INDIANAPOLIS — According to figures released by Mayor Joe Hogsett’s office Monday, the average assessed value of a home in Marion County is expected to increase by 18% to $224,673 in 2023.
”That’s definitely in line with what we’ve seen as far as property values and sales prices raising,” said Spencer Ruark of @Properties who has been buying and selling homes in the Bates/Hendricks neighborhood for seven years.
But with higher assessed values come higher property taxes.
”I don’t see taxes going down especially in this area as things are becoming more and more gentrified,” said Brian Alltop as he walked his dog Louie through a Fountain Square neighborhood. “I don’t see taxes are going to go down.”
Bolstered by $27 million in federal American Rescue Plan Act funding, Hogsett has proposed giving Marion County homeowners a break on next year’s first round of property taxes: $150 for properties valued under $250,000, $100 for homes that fall into the $250,000-$400,000 range.
”In the last year or so assessed valuations have skyrocketed,” said the mayor. ”One of the reasons we’re making this property tax adjustment downward is because we don’t want people to lose their homes because they can’t pay their property taxes. The assessed valuations are so high they’re having to move.”
That threat is real in Fountain Square where some longtime homeowners are thinking of selling and moving out due to the increased value of their properties or the expense of higher taxes.
”I’m an Indianapolis native and I know some of the houses in my neighborhood were going for $20,000 back in the early 2000s and now they’re up over 300 in some cases, so its gotten pretty crazy,” said Alltop. ”Mine has gone up probably a hundred thousand in value since I moved in, so its on the rise.”
The mayor said the intent of the tax break is to help homeowners struggling with record inflation.
“Its only the people who are getting hit the hardest that are getting the relief,” said Hogsett. ”I can’t quote what their tax bill will be but I do know that a hundred to one hundred fifty dollars is not an insignificant credit that will help them maintain the homes that they’ve lived in, in some cases, inter-generationally.”
As property taxes are tied to higher assessed values next year, the one-time tax break may simply lessen the rate of increase.
”I agree its not much, but its better than nothing, of course, but it’s a one-time fix, or, not even a fix, a one-time boost,” said Ruark. “One thing that stands out to me is, its spread out evenly all across the board to all neighbors and for some of the neighbors who just moved in, its probably an inconsequential amount of money.”
If the City County Council approves the tax break, it would show up on the May 2023 property tax bills.