Many of the residents in Howard County can expect an increase in their property taxes when bills are mailed out later this week.
Tax rate increases, a smaller homestead tax credit collection from the state and a decrease in the county’s overall net assessed valuation will cause an increase that may hit owners of property close the city’s median home price the hardest.
In the city of Kokomo, Howard County Assessor Martha Lake said a home with an assessed value of $75,000 with homestead credit, supplemental homestead credit and a mortgage will pay $778 in property taxes this year, compared to $613 in 2013.
In Russiaville, a home with the same assessed value with homestead credits, supplemental homestead credit and a mortgage will pay $680 in 2014, compared with $564 in 2013. In Greentown, the same home would receive a bill of $742, compared with $598 in 2013.
“Homesteaders have normally not hit the caps yet,” she said. “They’re going to feel the pain the most from the increase in any tax rate. Businesses and rental properties are probably capped out now, so they can count on what their taxes are going to be based on their assessed value.”
A bookkeeping error from the state is to blame for the decrease in the amount of homestead credits property owners received through the Local Option Income Tax this year.
The county received $7 million in property tax relief for local residential property owners in 2013, decreasing from $8.4 million in 2012. The one-time increase in the homestead credit came as a result of $1.33 million sent by the state as a result of the error, providing approximately 23,000 property owners a one-time savings of $58 early in 2013.
“Last year they had a little bigger break due to that increase,” Lake said. “This year we have $7 million, so they won’t see as large a credit, so that will result in an increase on their tax bill.”
