From the Fort Wayne News Sentinel:
"State-imposed caps will save Allen County property owners about $35.26 million this year – a number that will force further belt-tightening by officials but won't eliminate the possibility of tax increases, especially for owners of farmland.
Under legislation passed in 2006 and later added to the Indiana Constitution, residential property taxes are capped at 1 percent of the home's assessed value, at 2 percent on rental properties, and 3 percent on agricultural and commercial. As a result, Allen County Auditor Tera Klutz said, the city of Fort Wayne will collect about $13.58 million less than it otherwise would have. Allen County government will “lose” about $5.99 million, and the Fort Wayne Community Schools $5.22 million.
Taxes paid by many homeowners have already reached the cap, meaning their taxes cannot increase unless their property's assessed value also increases. But in areas where taxes have not reached the maximum, or where property values have dipped because of the recession, tax will be lower. This year's net tax rates have dipped by 7 percent in Eel River and Perry townships and Huntertown, for example, with rate increases of about 2 percent in many areas of Fort Wayne and in some areas served by the Southwest Allen County Schools, where voters approved spending increases that exceeded the cap. Taxes on rental and business properties are also expected to be flat this year.
Farmland is another story, according to Chief Deputy Auditor Nick Jordan.
Agricultural land has historically been assessed at about one-third of market value, but this year the base value was increased by to $1,500 per acre – meaning owners could see their tax bills increase by 16 percent.
Monroeville residents could also see larger-than-normal increases, Klutz said, in part because of the decreased value of the CME Corp.'s property. Taxes there could go up by 6 percent.
All told, the various governments operating in Allen County expect to operate on about $346.79 million in property taxes this year, with schools receiving 35 percent, cities and towns 33 percent, the county 19 percent, and the Allen County Public Library 8 percent, with other units receiving less.
Coupled with the recession's effect on sales and income taxes, the loss of more than $35 million in circuit-breaker funds -- that's $270,775 more than last year – could force governments to curb spending or tap cash reserves."
http://www.news-sentinel.com/apps/pbcs.dll/article?AID=/20120327/NEWS/120329640
