From WBAA:
A new law changing the way commercial residential property is assessed will decrease revenue to local units of government.
The common areas of apartment complexes, such as a pool, tennis court or garage, will be defined as residential property. That means the 2% property tax cap applies, instead of 3% for non-residential commercial property.
West Lafayette Clerk-Treasurer Judy Rhodes says that will result in a significant loss of money.
“Their property tax bills are going to be reduced and every dollar that their reduced will be a dollar less that the city’s going to receive to provide basic public services,” she says. “And I might note, to very high density uses in the city.”
She does not know how much the change will cost the city, but says the county assessor’s office is calculating the potential loss.
City of Lafayette Controller Mike Jones says he doesn’t understand why only some types of property are getting the break. He says the exact amount of money lost because of the change won’t be known until after the state certifies budgets.
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http://wbaa.org/post/change-property-tax-cap-law-benefits-apartment-complexes
