Tuesday, June 17, 2014

Times Reports Lake County Assessor Parcels Out Advice to Lower Taxes

From the Northwest Indiana Times:

Lake County Assessor Jolie A. Covaciu said she has a tip that could save some taxpayers hundreds of dollars.
"It may be advantageous for a residential property owner to combine multiple contiguous properties," she said Monday.
She cites the example of a Lowell property that in 2013 sat on two separate lots taxed a combined $691.36. It was combined into one parcel and, this year, its taxes are $493.72.
"Another example is of a home in Whiting had paid a total of $1,053.03 on their 2013 bill and now pays $869.04 on their 2014 tax bill," she said.
She said the secret is in how the state's system of homestead exemptions and property fees works.
The homestead standard deduction, the largest tax break most people qualify for, reduces the taxable assessed value of a home by up to $45,000 and sets an upper limit to the taxes at around 1 percent of its assessed value.
However, the state only allows one deduction per individual or married couple. That restriction becomes important if a home sits on more than one parcel, since the homestead rate would only apply to one of the parcels. The others are taxed at a higher amount as if no home existed on them.