Property tax consultant Darren Bates, whose presentation to the Wells County Council last August advised them to discontinue homeowners’ property tax credits, is scheduled to meet with the council Tuesday, March 7 to further discuss future tax and budget strategies.
Although the council ultimately did not heed his advice and left the property tax credits for homeowners and rentals properties unchanged for 2023, several pending and possible changes at the state level will definitely mandate some changes and possibly eventually eliminate the county’s option to use Local Income Tax receipts to reduce homeowners’ property tax bills.
“There’s definitely an issue the council will need to address on how the ‘Cap-2’ credits are applied,” Bates told the News-Banner earlier this week, “and there are several proposals within the legislature’s current session that could make some very significant changes.”
One proposal in the Senate, he said, would increase the acquisition cost threshold for the business personal property tax exemption from $80,000 to $250,000. He has had quite a few of the 57 Indiana counties he works with ask him to compute how that would impact their tax levies. He estimated this week that Wells County would see a loss of at least $1 million, an amount that would have to be absorbed by other property tax categories.
Bates’ place on the agenda Tuesday evening will be after regular business is completed.
“I’m not exactly sure what they want me to cover, but it will mostly be educational,” he said. “I’d prefer to do this as an afternoon work session so we’re not there too late, and allow time for questions and input from taxpayers. But they asked me to come Tuesday evening. That’s OK.”
— Mark Miller
