From the Johnson County Daily Journal:
Homeowners initially would shoulder almost the entire tax burden of town government if Center Grove became a town.
Houses make up 96 percent of the taxable value of property in unincorporated White River Township, meaning that homeowners would then pay most of the property taxes needed to run a town.
Existing cities and towns in Johnson County have far more businesses to help foot the bill for police, parks and other services, according to the county information technology department. Homeowners, for instance, account for less than 60 percent of the taxable property in Greenwood and Franklin.
The proposed town of Center Grove would have a smaller budget and lower property tax rate than either Greenwood or Franklin but also would have far fewer businesses chipping in property taxes.
How much you have to pay in property taxes is based on how much taxable property there is in a community and how much money local governments need to raise. That’s how the state calculates the property tax rate that’s then applied to the value of your property. The higher the overall value of the taxable property in a community, the lower everyone’s taxes get.
Businesses contribute a relatively larger share, since they have a higher property tax cap of 3 percent, compared to 1 percent for homes, and they’re usually worth more than homes. We’re talking way, way more in some cases. The Greenwood Park Mall, for instance, is valued at $83.7 million for tax purposes, according to county records.
http://www.dailyjournal.net/view/local_story/Who-would-pay-Homeowners-faced_1345259156/
