The Agony and Possible Ecstasy of Indiana Property Taxes and What All Homeowners Need to Know About Property Taxes in a Recession

As I write this, the latest news is that many of the Indiana Property taxes, particularly Marion County property taxes, are in for a decline. According to the latest information I got, based on a phone call to the Marion County Assessor's office (317- 327-4907) , most of the county property tax rates declined since the 2007 estimate. In our case, that means that most assessed value (and taxes) went down for homes - and homeowner property taxes. Our home's assessed value for Indiana property taxes fell about 8%. But that doesn't mean we'll necessarily pay less for Indiana property taxes on our property. Read on to find out why.

On the face of it, it would appear to be good news that we might get a refund or credit on future property taxes. If you happen to be someone who could be affected, you can check your status for your township right here: www.indygov.org/eGov/County/Assessors/home.htm

This will give you a fair idea of the odds that you'll be paying less. Those in Indiana, particularly Indianapolis, have gone through a fair bit of drama, seeing their Marion County property taxes in 2007 soar to double or triple the amount they paid the year before. All we had to do was open our bill to see the sad reality before our eyes. We were lucky compared to one friend whose property taxes doubled - for two years in a row . The sticker shock was enough to get people to wake up and start screaming like crazy, post signs in their yard saying things like "This home for sale due to high property taxes" (a strange sales strategy) and more.

If you don't live in Indiana, you might wonder what on earth any of this could have to do with you. Isn't it a good thing to pay lower property taxes and maybe even get a refund, especially during a recession?

Not necessarily. When property taxes are cut, consumers and homeowners often feel the pinch elsewhere - particularly during a recession. Schools still need funding and so do plenty of other services covered by home property taxes. Because lower property taxes often create a shortfall, potential negatives include:

1. Higher sales and income taxes, now in discussion.