Most new Indiana property tax credits will be automatic

By GARRETT BERGQUIST
WISH-TV | wishtv.com

Two officials who calculate property tax liability said Monday most homeowners likely won’t need to do anything to qualify for the tax credits in Indiana’s new property tax law.

News 8 contacted the offices of the Hamilton County assessor and the auditor after a viewer asked how homeowners can be assured all applicable deductions will be applied to their property tax bill.

The primary tax break in the new law is a credit for up to 10 percent of a homeowner’s total tax liability after all deductions have been applied, to a maximum value of $300. County auditors are responsible for calculating those deductions.

Sadie Eldridge, the real property, adjustment and settlement manager for the Hamilton County Auditor’s Office, said any homeowner who has applied for the standard homestead deduction will receive that credit automatically.

The new property tax law phases out the standard homestead deduction by 2031 in favor of the supplemental deduction, which will be equal to two-thirds of your home’s assessed value once it’s fully phased in. Eldridge said that deduction will be automatic. Unlike the standard homestead deduction, Eldridge said, the supplemental deduction will fluctuate because it’s calculated as a percentage of a homeowner’s assessed value.

The tax law includes supplemental tax credits of $250 for disabled veterans, $125 for blind or disabled persons and $150 for seniors on fixed incomes. Eldridge said nothing has changed in terms of applying for the disabled veteran deduction. Applicants will still need to provide a copy of their DD-214, the Department of Defense Certificate of Release or Discharge from Active Duty.

Hoosiers 65 and older will only need to provide proof they have an income less than $60,000 per year, or $70,000 per year for married couples. Eldridge said that will require a Form 1040, the IRS form used to file an annual income tax return. She said if homeowners already receive either of those credits, they will not need to reapply.

While the county auditors calculate tax credits and liability, it’s up to the county assessors to determine a home’s assessed value. Hamilton County Assessor Kevin Poore said sale prices in a neighborhood and a home’s square footage are the two primary factors that drive a home’s assessed value. He said other factors can include the condition of the home and the materials used.

Eldridge said the Department of Local Government Finance recommended counties shift homeowners to the new credit system automatically but did not require them to do so. She said homeowners should check with their county auditor to find out what they need to do, if anything.

Eldridge said the new property tax law discontinues property tax credits for geothermal and solar power systems, but the new tax credit system should offset that for most homeowners.

This story was originally published by WISH-TV at wishtv.com/news/politics/indiana-homeowner-tax-deductions.