The Herald Bulletin

Evening Update

Breaking News

November 23, 2009

Tax bill surprise: bills went up, not down

Bills to go down again in 2010

ANDERSON, Ind. — John Hendrix was pleased in 2008 when his tax bill dropped by nearly $1,000 — but his luck quickly ran out.

Hendrix recently received his new tax bill to find that the amount had jumped back up to its original 2007 bill.

In 2008, Hendrix’s bill was $1,329. For 2009, the bill jumped to $2,226.

When he sought answers from local officials, Hendrix said no one could explain why his bill dipped and then soared in the span of three years.

He’s not alone.

Many Madison County residents found this year’s property tax bills shocking, including state Sen. Tim Lanane, D-Anderson.

Lanane’s bill fluctuated as others did, surprising the senator who’d voted for property tax relief.

He quickly contacted fiscal analysts at the Statehouse and learned that the dip in property taxes seen in 2008 was temporary, and had little to do with property tax caps imposed by the Indiana Legislature.

“I was reminded that in 2008, the state pumped in $620 million statewide in terms of property tax relief. You have to remember where we got that money, the racetracks, mostly.”

Hoosier Park paid a $250 million licensing fee, and that money was used for property tax relief.

Although it may not have been obvious on tax bills, the state did provide tax relief this year.

Property taxes were capped at 1.5 percent, according to tax bills, and will be capped at 1 percent in 2010.

Lanane said the real effect of property tax caps won’t be felt for another year.

“When you look at the expected impact of the circuit breaker for next year for Madison County, it is overall $23 million estimated net credit countywide of circuit breaker in 2010. This year it’s only $10.8 million.”

Mary Jane Michalak of the State Department of Local Government Finance said Madison County’s property taxes were also affected when local school debt service levies went up 15 to 20 percent.

The news is little comfort for Hendrix, who has to spend an extra $1,000 he didn’t anticipate.

What worries him most is how the tax bill surprise will affect Christmas with his daughter. “How do you tell a 13-year-old you can’t get her anything for Christmas?”

Contact Brandi Watters: 640-4847, brandi.watters@heraldbulletin.com

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