INDIANA CHANGED
THE PROPERTY TAX SYSTEM.
THE MECHANICS OF FUNDING
01. TAX RATE V. TAX BILL
The interaction between percentage rates and property assessments depends on volatility in the housing market. A higher rate applied to a static value is simple; a static rate applied to a surging assessment is where taxpayers feel the most impact.
02. DEDUCTIONS
Legal mechanisms—such as the Homestead and Mortgage deductions—reduce the portion of your property's value that is actually subject to taxation. These ‘shields’ are critical in determining the final bill amount regardless of the voter-approved rate.
03. NET VALUE
Your home's market value minus all eligible deductions equals your Net Assessed Value. This is the real number that determines your share of school funding.
04. REVENUE
The total capital generated for district operations. This covers essential costs: from teacher salaries and classroom technology to infrastructure maintenance and school safety.
05. REFERENDUMS
Public decisions that bypass the state-capped general fund. Existing referendums often support daily operations, while replacement votes aim to maintain current local investment levels.