Long Live the Tax Caps

Without the property tax caps coming on line this year and next, Decatur residents would be in disastrous straits trying to pay their pay-2009 tax bills. That is because of the irresponsible non-oversight of the MSD Decatur School District by the School Board which has allowed the school property tax rate to more than double in two years; even though the State is taking over all operating costs for the Schools during this time.

For the pay-2008 property taxes, which were recently due, the Decatur Schools had the highest rate of any School District in the County at $2.75 per one hundred dollars of assessed value. Not only that, they were the highest of any of the other 270 school districts (out of 316 total districts) whose numbers are currently being reported on the Indiana Department of Education's website. Hey great ! Last year we might very well have been number one in the State !!! Unfortunately it wasn't in the graduation rate or ISTEP passage rate. Just the property tax rate.

In Marion County, the next highest pay-2008 rate was Franklin School District which charged $2.13 per one hundred dollars of assessed value. The hyperinflated School tax rate made Decatur the highest taxed Township with a total rate of $4.31; a full 20% higher than Franklin and 80% higher that Washington Township.

But wait ! There's more !

For our pay-2009 property taxes, Decatur Schools are charging MORE this year for the schools alone, than the TOTAL property tax rate for all government units combined last year. According to the legal notice published in yesterday's Indianapolis Star, they are charging $5.28 per one hundred dollars of assessed value; 75% higher than last year and two and a half times higher than the year before that. This is twice that of our new competitor, Beech Grove School District who weighed in at a paltry $2.62. This makes Decaturite's total property tax rate, including all governmental units, an astounding $7.04; a full 75% higher than the next highest Township, Wayne, and a staggering 263% higher than Washington Township.

Thanks to the School District's irresponsible debt accumulation, we will be extremely hard pressed to keep the few businesses we have, much less attract any new ones. Let me repeat this new tax rate, thanks to the Schools -- $7.04. Businesses do look at these things before deciding where to locate. So, if you want more for Decatur, vote the School Board out of office in the next election, which will be held in the Spring of 2010.

More later on all of the extraneous property owned by MSD Decatur Township that can be sold to make at least modest reductions in our appalling property tax situation.

Property Tax Rates - What it Means to You

Property Tax Rates are complicated this year and next with the tax cap limits that are working into the final tax bills. For residential homestead use, where you live in the home you pay property taxes on, the cap for pay-2009 is 1.5% of the assessed value.

The bill will show your total assessed value, then subtract deductions and credits for a net assessed value. The net assessed value times your tax rate percentage is the property tax you owe -- only if that number is less than your total assessed value before deductions and credits times 1.5 percent.

For example, if your house has an assessed value of $100,000 and a net assessed value after deductions and credits of $50,000, and you live in Decatur Township with a tax rate of 7.0354, your property taxes would be $3652.70 before the cap and $1,500 after the cap. So, this theoretical house would be charged $1,500 in property taxes. The same house in Lawrence Township which has a tax rate of 2.7210, would be $1360.50 before the cap, and $1,500 after the cap. This theoretical house would be charged $1360.50 in property taxes because it is below the cap.

Property Tax Rates by Major Taxing District

This is the fifth in a string of blog entries reporting the property tax rates for your pay-2009 property tax bill. That bill is expected to be finalized and mailed in October/November of this year. Below I report the total property tax rate by the largest size taxing districts in each Township as well as the excluded Cities. The previous rate for each is also reported for comparison (published in the Star on June 17, 2009). The rate is what you would owe, after deductions and credits, per one hundred dollars of assessed value.

Taxing District	pay-2009	pay-2008
Center Township (101)	3.3965	3.5490
Decatur Township (200)	7.0354	4.3067
Franklin Township (300)	3.9834	3.5790
Lawrence Township (400)	2.7210	2.7271
Perry Township (500)	3.0324	2.9933
Pike Township (600)	3.1395	2.8607
Warren Township (700)	3.1049	3.2983
Washington Township (800)	2.6739	2.3909
Washington Township (801)	3.3385	3.5055
Wayne Township (900)	4.0238	3.6931
Wayne Township (901)	3.3566	3.5191
Beech Grove (502)	5.8855	3.9345
Lawrence (407)	2.9372	2.9336
Speedway (914)	3.1338	3.0253

Property Tax Rates by Township or Excluded City

This is the fourth in a string of blog entries reporting the property tax rates for your pay-2009 property tax bill. That bill is expected to be finalized and mailed in October/November of this year. Below I report the total property tax rate for Township and Excluded City functions. For comparisons, you will have to add the IFD District rate to that of Center, Washington, or Warren Townships as IFD now serves those areas. The Perry consolidation with IFD will be reflected in the pay-2010 rates. The previous rate for each is also reported for comparison (published in the Star on June 17, 2009). The rate is what you would owe, after deductions and credits, per one hundred dollars of assessed value.

Taxing District	pay-2009	pay-2008
Center Township	0.0680	0.0510
Decatur Township	0.6506	0.4863
Franklin Township	0.5424	0.3876
Lawrence Township	0.3477	0.2551
Perry Township	0.3367	0.2973
Pike Township	0.4368	0.2672
Warren Township	0.0093	0.0070
Washington Township	0.0100	0.0075
Wayne Township	0.8372	0.5925
IFD District	0.2947	0.3070
Beech Grove	1.5226	1.0377
Lawrence	0.7658	0.5719
Speedway	1.3809	0.0000

Propety Tax Rates for County-wide Government

This is the third in a string of blog entries reporting the property tax rates for your pay-2009 property tax bill. That bill is expected to be finalized and mailed in October/November of this year. Below I report the total property tax rate for some of those taxing units in Marion County for which we all pay the same rates. The previous rate for each is also reported for comparison (published in the Star on June 17, 2009). The rate is what you would owe, after deductions and credits, per one hundred dollars of assessed value.

Taxing District	pay-2009	pay-2008
Total Welfare	0.0174	0.1585
Total County	0.3919	0.3262
Total Co. H&H	0.1765	0.2114
Total Library	0.1283	0.0903
Total Public Trans.	0.0713	0.0504
Total Muni Corps	0.3761	0.3521

Property Tax Rates for School Districts

This is the second in a string of blog entries reporting the property tax rates for your pay-2009 property tax bill. That bill is expected to be finalized and mailed in October/November of this year. Below I report the total property tax rate for each school district in Marion County. The previous rate for each is also reported for comparison (published in the Star on June 17, 2009). The rate is what you would owe, after deductions and credits, per one hundred dollars of assessed value.

School District	pay-2009	pay-2008
IPS	1.5565	1.7668
Beech Grove	2.6162	1.8168
Decatur	5.2762	2.7544
Franklin	2.3324	2.1254
Lawrence	1.2647	1.4060
Perry	1.5871	1.5275
Pike	1.5941	1.5275
Warren	1.9870	1.9388
Washington	1.2606	1.1291
Wayne	2.0780	2.0346
Speedway	0.7466	1.1197

Now I know you are wondering 'How do I get the luxury of a school board as irresponsible as Decatur has?'. Well boys and girls, you must have a board that is handpicked by the Superintendent and attends regular and rigorous 'how to rubber stamp any outrageous expenditure of funds' seminars. While it is an option whether or not their sole interest is who is the best relative to make football coach, it can be an asset in keeping them quietly occupied in the corner while the important decisions are made out of earshot.

Property Tax Rates Published

For those who do not get a printed copy of the Star, you likely missed the publication, as required by law, of the property tax rates proposed for your pay-2009 property tax bill. Since these budgets have already been crafted and are being used as we speak, these rates should be the final rates. Because Governor Mitch Daniels called for a redo of the property value assessments a couple of years ago, we have been behind schedule with our property assessments and the tax rates and tax bills. Hopefully by 2010, we will get back on the usual schedule.

I will separate into individual blog entries the rates for schools, the city/county, and the totals so that the numbers are a bit more digestible. Also, I am reporting only the rates for the largest one or two taxing district in each Township, just to keep things as simple as possible. A map of the districts is shown on this IU webpage for your reference. Should you live in one of the minor taxing districts, sizewise, you'll have to contact the Star for a paper copy. Their website publication of the notice is gibberish. As an alternative, you could contact David Reynolds, City Controller, as he submitted the table to the Star for publication. ( dreynold@indygov.org )