Property tax needs to be repealed / abolished NOW! (Morgan Co info here)

[shibumiseeker]

I can't explain it to you because A.) you don't want to know and 2.) you've already made up your mind. Why would anyone waste their time trying to help you understand how it works?

I'm fine with being able to double my money on our house that we built 20 years ago. Since we haven't had a mortgage for several years, that means it's all for the new house in someplace warm... and it looks like that one will be really nice as well.

It’s a flawed premise. If I were buying a property as an investment then I realize a gain (or loss) when I sell. I totally get that. A stock is not taxed on its value in a portfolio, only when it is sold or transferred, because that is the only time is has monetary value and is thus taxable.

Your logic on both counts fails because your premise is wrong and trying to place the blame on my lack of understanding is a logical fallacy. I’m not buying it as an investment, hence I will never realize a gain or loss.

My issue is twofold as I’ve explained before: in the first I don’t believe property owners should be taxed annually, only at transfer of property. Second, and far more vexing, is that the tax is based on an imaginary value that can change but I don’t benefit from that value unless and until I sell.

 

[Hawkeye7br]

I can just imagine the howling on INGO, billionaire's pay tax on their house but have millions in property, like side walk lined gardens, massive patios, gazebos, and fire pits they pay nothing on. I thought we wanted everyone to pay their part for the improvements to property they own?

Put a reasonable cap on it, or tiers like our progressive tax rate. A single, elderly homeowner getting $1700/month from SSI shouldn't have to pay $200/month in property tax because their 47 year old house has an assessment based on a market geared around $80k incomes earned by his neighbors.

 

[Ingomike]

No, it’s the folks that tell me I’m richer because I could sell my place (that I built with my own hands) for more than I paid for it, except that I could not then turn around and buy something the same for the money I got for selling it. I fail to see how that makes me richer. But because I am richer in their made up accounting, I must pay more.

When you get your 401k or stock statement are you not richer even though you have not sold the stocks or realized the gains? Same with RE, but you can keep on tilting at windmills…

 

[Shadow01]

Skipped to the bottom of the thread here...

Someone's going to have to remind me the difference between the average republican politician and the average democrat.

Neither will cut spending. They both will rearrange the chairs on the Titantic to play games with whom they want to stick the check with but neither will do anything about the other side of the equation.

Easy way is a hardcore far right republican is a conservative. The rest are constitution hating communists.

 

[shibumiseeker]

When you get your 401k or stock statement are you not richer even though you have not sold the stocks or realized the gains? Same with RE, but you can keep on tilting at windmills…

No, I’m not. Because before I sell those stocks, their “value” can plummet. They have zero intrinsic value until they are sold, Don.

 

[Shadow01]

Assessed value by the county needs to be guaranteed by the county with a requirement to purchase my property at assessed value if I fail to sell it on the market for that value within the first 30 days it has been listed.

 

[Ingomike]

Put a reasonable cap on it, or tiers like our progressive tax rate. A single, elderly homeowner getting $1700/month from SSI shouldn't have to pay $200/month in property tax because their 47 year old house has an assessment based on a market geared around $80k incomes earned by his neighbors.

I think 13 states have frozen seniors property taxes. However, this will just increase the taxes all other property owners pay, particularly increasing costs for first time homeowners.

 

[Ingomike]

Assessed value by the county needs to be guaranteed by the county with a requirement to purchase my property at assessed value if I fail to sell it on the market for that value within the first 30 days it has been listed.

Do you see a lot of properties in Indiana that are worth way less than their assessed value? Maybe we should flip your script, I would buy 95% of the properties in Indiana at assessed value because I have rarely seen property assessed over what it actually was worth…

 

[Ingomike]

They have zero intrinsic value until they are sold, Don.

Well they have value now, I’ll personally give you $100 sight unseen for your zero intrinsic value stocks, so they have a value, even if just on paper…

 

[Shadow01]

Do you see a lot of properties in Indiana that are worth way less than their assessed value? Maybe we should flip your script, I would buy 95% of the properties in Indiana at assessed value because I have rarely seen property assessed over what it actually was worth…

In my area? Yes. Because we are rural and have few “similar “ homes to use as a calculation, most of our area is compared to more urban areas where home assessed values are higher.

my home is not worth more than 90k at best. Same size home in Lafayette or Greencastle list for 130k on the low end and generally at 150k. My assessment is 122k. I would take that in cash today.

 

[Ingomike]

In my area? Yes. Because we are rural and have few “similar “ homes to use as a calculation, most of our area is compared to more urban areas where home assessed values are higher.

my home is not worth more than 90k at best. Same size home in Lafayette or Greencastle list for 130k on the low end and generally at 150k. My assessment is 122k. I would take that in cash today.

Are you in either of those counties? I didn’t know they could cross county lines for similar homes…

 

[Ingomike]

We all essentially agree a property tax does not allow for ownership without payment. The question is, just who and how should government services that directly benefit the property be paid for. County, city, and town streets and roads and other infrastructure. What about the surveyors and drainage departments? Police and fire departments? The deed offices that secure you ownership. These all directly benefit the property.

Who should fund schools is certainly debatable but service directly to or for property should be paid by who how if there is no property tax?

So no one wants to take a swing at the hard questions?

 

[JTScribe]

Do you see a lot of properties in Indiana that are worth way less than their assessed value? Maybe we should flip your script, I would buy 95% of the properties in Indiana at assessed value because I have rarely seen property assessed over what it actually was worth…

This actually happened to us when we first bought our house 15 years ago. We paid 90K, because it had been neglected for a long time and needed a ton of work to be livable for a young family. The tax assessment was for nearly double what we paid. I got the paperwork to file an appeal and went to the assessor's office. He acted as though he was personally offended by the concept that he made an error until I asked him if he'd buy my house for his assessed value or (hand him the paperwork) what it appraised for.

They adjusted our assessment.

 

[firecadet613]

We all essentially agree a property tax does not allow for ownership without payment. The question is, just who and how should government services that directly benefit the property be paid for. County, city, and town streets and roads and other infrastructure. What about the surveyors and drainage departments? Police and fire departments? The deed offices that secure you ownership. These all directly benefit the property.

Who should fund schools is certainly debatable but service directly to or for property should be paid by who how if there is no property tax?

Until this is answered, there will be no movement on property taxes...

 

[rbhargan]

Actually, there isn't much difference between property tax and the Democrats' proposals to tax investments - not realized capital gains, but *potential* profit.

It raises the question as to why we accept a tax on non-realized profits on *property*, but not on non-realized profits on investments.

I had never considered this before. Interesting.

 

[xwing]

Agree. I'm taxed on my crawl space. Attached garage is part of the house and taxed at 1%. Detached garage is 3%. Concrete patio, 12x20 shed for mower/tools, gazebo for fire pit, etc are all 2-3%. Totally against the spirit of the original 1% cap. Buddy bought house with unusable in ground pool. Taxed 3% on pool until he filled it in to create garden. Now he's taxed on the old concrete sidewalk that goes from house to garden. Sheesh!!

Are you sure about that? If used for personal / residential purposes, they should still be part of the homestead exemption. (Though if you're running a business out of them, they can be taxed up to 3%.) See https://www.in.gov/dlgf/files/2023-presentation/231011-Thuma-Presentation-Deductions-Overview.pdf. Also see this court case: SCHIFFLER v. MARION CO. ASSESSOR

 

[DragonGunner]

I fight it every single year and we meet about half way. But every year it goes up. I’m 62, when I hit 65 I can apply for senior tax cut on property, as long as it’s valued under 150k.

Well guess what, it’s getting close to 140k and by the time I hit 65 it’s going to be way above that so I can’t get the tax relief.

Meanwhile the trash house across from me that was worth 60k 5 years ago just sold again for literally $185k ! Great. There goes my value up another $20k or more for this year.

They do this to get $ for schools and jails. The politicians in this state suck. America really isn’t great anymore. Might be better off to sell out and move to Thailand or Vietnam.

 

[Ingomike]

Actually, there isn't much difference between property tax and the Democrats' proposals to tax investments - not realized capital gains, but *potential* profit.

It raises the question as to why we accept a tax on non-realized profits on *property*, but not on non-realized profits on investments.

I had never considered this before. Interesting.

To me the difference is that government does very little to support your stock ownership. They do your property.

“The question is, just who and how should government services that directly benefit the property be paid for. County, city, and town streets and roads and other infrastructure. What about the surveyors and drainage departments? Police and fire departments? The deed offices that secure you ownership.”

 

[Ingomike]

They do this to get $ for schools and jails.

So politicians get someone to pay $185k to jack your tax assessment?

The politicians in this state suck.

Really? Indiana property taxes are lower than most as mentioned in several posts in this thread. There are plenty of reasons they suck but property taxes are not one IMHO.

America really isn’t great anymore. Might be better off to sell out and move to Thailand or Vietnam.

Wow!

 

[sapper83]

My understanding is that, in Indiana, property tax on your primary residence is capped at 1%. Of course, all you have to do to get around that is increase the assessed value.

I also believe that most property tax is used to fund local education. If that is the case, how about making home schoolers exempt from property tax? While that would not effect me, exempting people who do not have children in public schools would, and I don't have a problem, with that.

I am a little irked that I am forced to pay money to teachers who are engaged in political indoctrination.

1600$ of my tax bill goes to our township school which was rebuilt 5 years ago and has only about 200 kids from k to 12th. Total BS