January 15, 2013

Indiana Association for Community Economic Development: Indiana Property Taxes: Is Property Tax Relief or Tax Restructuring the Solution?

ITEP Work in Action

Many Indiana communities are once again experiencing what is perceived to be a property tax “crisis.” However, by its most common definition, a crisis implies a situation that is characterized by unexpectedness and sudden change. Although the drastic increase in property tax bills is sudden for many homeowners, the implementation of Indiana’s property tax assessment system was declared unconstitutional by the Indiana court system nine years ago. So, how can we learn from the past to avoid another property tax crisis in the future and provide relief to homeowners who have experienced astronomical increases in their property taxes?

In this report, we attempt to examine the answers to some of these questions. While many agree property taxes need to be addressed, the question is how do we do it? Another way of looking at a crisis is that of a turning point. With this framework in mind, this report will examine changes made to Indiana’s property tax system and whether property tax relief or tax restructuring is the solution to the property tax increases experienced throughout Indiana.

Read the Full Report (PDF)