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Inventory Tax Credit Program
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Property
Tax Betrayal & Incompetence
General
Assembly Property Tax Legislation Homeowner
Property Tax Effects Property
Tax Relief Property
Tax "Stories" Property
Tax Deferral Program
Background: Somewhere between May 14, 2002, and June 3, 2002, there was a philosophical change during the 2002 General Assembly special session regarding inventory tax removal. Instead of using credits paid by the state, the inventory tax will now be eliminated by shifting it to all other property taxpayers. It appears this philosophical change came about as a result of an HB 1001 (SS) amendment in the House Ways and Means Committee. This amendment apparently was submitted by Representative Sheila Klinker so more state money would be available for spending instead of property tax relief in the form of inventory tax credits.
As a result of the special session in 2002, the business inventory tax will be shifted in two ways to all other property taxes through an increased rate.
About 51.7% of these business inventory tax shifts will be to homestead property. It is interesting to note that about 40 townships account for 80% of the total business inventory tax; homestead property taxes in these townships are likely to skyrocket!
Benefits: This Inventory Tax Credit Program will eliminate the manufacturing inventory tax shift to all other property taxes beginning with property taxes paid in 2004. A 100% business inventory assessed value tax credit, beginning with property taxes paid in 2007, will be pursued during a future General Assembly session.
The two tables that follow show (1) the Percent Residential Real Property Net Levy Increases By County after the Manufacturing Inventory Tax Shift and the Total Inventory Tax Shift and (2) the Residential Real Property Tax Increases By County from the Manufacturing Inventory Tax Shift. These are the inventory tax shifts to homeowners that will occur if the Inventory Tax Credit Program is not enacted.
|
Percent Residential Real Property Net Levy Increases By County |
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|
After Manufacturing Inventory Tax Shift and Total Inventory Tax Shift |
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|
(compiled March 17, 2003) |
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|
Column A |
Column B |
Col. C |
Column D |
Column E |
Column F |
Col. G Real Prop. Net Levy Incr. after Mfg. Shift (3) |
Column H |
Col. I Real Prop. Net Levy Incr. after Total Shift (5) |
|
Adams |
6,244,113 |
46.5% |
2,490,774 |
747,232 |
6,591,576 |
5.6% |
7,402,323 |
18.5% |
|
Allen |
96,393,735 |
54.7% |
19,122,991 |
5,736,897 |
99,531,817 |
3.3% |
106,854,011 |
10.9% |
|
Bartholomew |
21,686,388 |
54.7% |
5,344,540 |
1,603,362 |
22,563,427 |
4.0% |
24,609,851 |
13.5% |
|
Benton |
2,343,889 |
34.1% |
414,807 |
124,442 |
2,386,324 |
1.8% |
2,485,338 |
6.0% |
|
Blackford |
2,894,686 |
43.8% |
931,856 |
279,476 |
3,017,096 |
4.2% |
3,302,839 |
14.1% |
|
Boone |
17,966,490 |
61.3% |
2,215,411 |
664,623 |
18,373,904 |
2.3% |
19,324,536 |
7.6% |
|
Brown |
3,406,663 |
51.5% |
164,565 |
49,370 |
3,432,088 |
0.7% |
3,491,414 |
2.5% |
|
Carroll |
5,212,776 |
47.7% |
1,035,465 |
310,640 |
5,360,951 |
2.8% |
5,706,693 |
9.5% |
|
Cass |
8,201,162 |
44.9% |
3,253,106 |
975,932 |
8,639,355 |
5.3% |
9,661,807 |
17.8% |
|
Clark |
29,530,787 |
58.0% |
7,084,076 |
2,125,223 |
30,763,416 |
4.2% |
33,639,551 |
13.9% |
|
Clay |
4,221,255 |
46.7% |
798,765 |
239,630 |
4,333,162 |
2.7% |
4,594,278 |
8.8% |
|
Clinton |
8,638,673 |
48.3% |
1,796,943 |
539,083 |
8,899,050 |
3.0% |
9,506,596 |
10.0% |
|
Crawford |
722,823 |
20.0% |
146,620 |
43,986 |
731,620 |
1.2% |
752,147 |
4.1% |
|
Daviess |
5,121,375 |
44.4% |
1,530,114 |
459,034 |
5,325,186 |
4.0% |
5,800,746 |
13.3% |
|
Dearborn |
12,082,662 |
54.0% |
1,826,357 |
547,907 |
12,378,531 |
2.4% |
13,068,894 |
8.2% |
|
Decatur |
3,987,288 |
42.0% |
1,595,768 |
478,730 |
4,188,355 |
5.0% |
4,657,511 |
16.8% |
|
DeKalb |
8,614,605 |
47.4% |
4,328,241 |
1,298,472 |
9,230,081 |
7.1% |
10,666,191 |
23.8% |
|
Delaware |
31,882,656 |
55.0% |
8,130,545 |
2,439,164 |
33,224,195 |
4.2% |
36,354,455 |
14.0% |
|
Dubois |
10,370,559 |
49.4% |
4,049,535 |
1,214,861 |
10,970,700 |
5.8% |
12,371,029 |
19.3% |
|
Elkhart |
47,883,011 |
46.7% |
22,312,351 |
6,693,705 |
51,008,971 |
6.5% |
58,302,878 |
21.8% |
|
Fayette |
5,816,548 |
53.2% |
1,003,041 |
300,912 |
5,976,633 |
2.8% |
6,350,166 |
9.2% |
|
Floyd |
23,115,045 |
65.6% |
4,831,723 |
1,449,517 |
24,065,928 |
4.1% |
26,284,655 |
13.7% |
|
Fountain |
2,147,148 |
33.1% |
638,767 |
191,630 |
2,210,578 |
3.0% |
2,358,580 |
9.8% |
|
Franklin |
3,757,865 |
45.4% |
358,762 |
107,629 |
3,806,728 |
1.3% |
3,920,743 |
4.3% |
|
Fulton |
4,543,712 |
46.5% |
1,274,522 |
382,357 |
4,721,508 |
3.9% |
5,136,365 |
13.0% |
|
Gibson |
7,083,206 |
44.0% |
2,215,022 |
664,507 |
7,375,589 |
4.1% |
8,057,816 |
13.8% |
|
Grant |
16,520,931 |
52.0% |
4,326,380 |
1,297,914 |
17,195,846 |
4.1% |
18,770,648 |
13.6% |
|
Greene |
5,122,931 |
46.4% |
1,176,730 |
353,019 |
5,286,732 |
3.2% |
5,668,934 |
10.7% |
|
Hamilton |
128,794,240 |
78.6% |
9,347,819 |
2,804,346 |
130,998,456 |
1.7% |
136,141,626 |
5.7% |
|
Hancock |
17,093,085 |
65.0% |
1,917,849 |
575,355 |
17,467,065 |
2.2% |
18,339,687 |
7.3% |
|
Harrison |
5,505,931 |
44.7% |
967,393 |
290,218 |
5,635,658 |
2.4% |
5,938,356 |
7.9% |
|
Hendricks |
49,854,528 |
76.5% |
5,583,567 |
1,675,070 |
51,135,956 |
2.6% |
54,125,956 |
8.6% |
|
Henry |
10,285,135 |
55.3% |
2,180,713 |
654,214 |
10,646,915 |
3.5% |
11,491,069 |
11.7% |
|
Howard |
25,411,533 |
56.8% |
6,465,660 |
1,939,698 |
26,513,281 |
4.3% |
29,084,027 |
14.5% |
|
Huntington |
7,134,573 |
43.1% |
2,198,445 |
659,534 |
7,418,832 |
4.0% |
8,082,103 |
13.3% |
|
Jackson |
7,232,661 |
44.3% |
4,618,232 |
1,385,470 |
7,846,424 |
8.5% |
9,278,538 |
28.3% |
|
Jasper |
6,759,153 |
49.9% |
1,710,420 |
513,126 |
7,015,203 |
3.8% |
7,612,653 |
12.6% |
|
Jay |
3,134,051 |
37.2% |
1,091,495 |
327,449 |
3,255,862 |
3.9% |
3,540,087 |
13.0% |
|
Jefferson |
6,073,488 |
45.8% |
2,102,772 |
630,832 |
6,362,409 |
4.8% |
7,036,558 |
15.9% |
|
Jennings |
4,892,033 |
53.6% |
712,953 |
213,886 |
5,006,676 |
2.3% |
5,274,176 |
7.8% |
|
Johnson |
40,792,340 |
67.7% |
5,230,843 |
1,569,253 |
41,854,724 |
2.6% |
44,333,620 |
8.7% |
|
Knox |
7,319,106 |
46.0% |
2,376,945 |
713,084 |
7,647,124 |
4.5% |
8,412,501 |
14.9% |
|
Kosciusko |
20,410,804 |
54.2% |
5,162,024 |
1,548,607 |
21,250,149 |
4.1% |
23,208,621 |
13.7% |
|
LaGrange |
6,097,913 |
43.3% |
1,980,874 |
594,262 |
6,355,229 |
4.2% |
6,955,631 |
14.1% |
|
Lake |
162,493,545 |
45.1% |
36,207,592 |
10,862,277 |
167,392,432 |
3.0% |
178,823,169 |
10.0% |
|
LaPorte |
33,148,670 |
55.1% |
6,391,221 |
1,917,366 |
34,205,138 |
3.2% |
36,670,232 |
10.6% |
|
Lawrence |
8,777,823 |
53.5% |
1,355,908 |
406,772 |
8,995,446 |
2.5% |
9,503,234 |
8.3% |
|
Madison |
31,893,285 |
58.1% |
6,704,838 |
2,011,451 |
33,061,938 |
3.7% |
35,788,795 |
12.2% |
|
Marion |
280,825,881 |
47.6% |
74,492,909 |
22,347,873 |
291,463,468 |
3.8% |
316,284,506 |
12.6% |
|
Marshall |
10,002,346 |
46.2% |
2,905,667 |
871,700 |
10,405,071 |
4.0% |
11,344,764 |
13.4% |
|
Martin |
1,639,389 |
44.4% |
275,631 |
82,689 |
1,676,103 |
2.2% |
1,761,769 |
7.5% |
|
Miami |
6,526,242 |
51.5% |
1,524,707 |
457,412 |
6,761,809 |
3.6% |
7,311,466 |
12.0% |
|
Monroe |
34,178,881 |
56.8% |
4,514,749 |
1,354,425 |
34,948,194 |
2.3% |
36,743,258 |
7.5% |
|
Montgomery |
8,781,352 |
42.1% |
4,486,879 |
1,346,064 |
9,348,045 |
6.5% |
10,670,328 |
21.5% |
|
Morgan |
17,165,242 |
68.5% |
1,614,434 |
484,330 |
17,497,008 |
1.9% |
18,271,129 |
6.4% |
|
Newton |
4,125,598 |
43.6% |
755,452 |
226,636 |
4,224,411 |
2.4% |
4,454,975 |
8.0% |
|
Noble |
7,624,461 |
45.4% |
2,785,929 |
835,779 |
8,003,905 |
5.0% |
8,889,273 |
16.6% |
|
Ohio |
977,798 |
48.3% |
32,088 |
9,626 |
982,448 |
0.5% |
993,297 |
1.6% |
|
Orange |
2,417,017 |
38.6% |
555,285 |
166,586 |
2,481,309 |
2.7% |
2,631,357 |
8.9% |
|
Owen |
3,275,867 |
42.8% |
672,871 |
201,861 |
3,362,264 |
2.6% |
3,563,856 |
8.8% |
|
Parke |
2,990,591 |
44.7% |
320,577 |
96,173 |
3,033,580 |
1.4% |
3,133,889 |
4.8% |
|
Perry |
3,665,961 |
45.1% |
762,962 |
228,889 |
3,769,190 |
2.8% |
4,010,057 |
9.4% |
|
Pike |
1,990,241 |
38.3% |
887,047 |
266,114 |
2,092,163 |
5.1% |
2,329,980 |
17.1% |
|
Porter |
61,968,429 |
68.0% |
11,469,740 |
3,440,922 |
64,308,255 |
3.8% |
69,767,852 |
12.6% |
|
Posey |
7,132,725 |
44.3% |
2,364,785 |
709,436 |
7,447,005 |
4.4% |
8,180,325 |
14.7% |
|
Pulaski |
2,475,803 |
33.0% |
1,041,941 |
312,582 |
2,578,955 |
4.2% |
2,819,644 |
13.9% |
|
Putnam |
6,924,929 |
47.1% |
1,600,151 |
480,045 |
7,151,030 |
3.3% |
7,678,600 |
10.9% |
|
Randolph |
5,090,520 |
42.5% |
1,150,965 |
345,290 |
5,237,268 |
2.9% |
5,579,680 |
9.6% |
|
Ripley |
4,276,281 |
40.5% |
1,130,595 |
339,179 |
4,413,648 |
3.2% |
4,734,172 |
10.7% |
|
Rush |
3,071,055 |
36.4% |
1,038,323 |
311,497 |
3,184,440 |
3.7% |
3,449,005 |
12.3% |
|
St. Joseph |
86,441,064 |
53.8% |
21,316,817 |
6,395,045 |
89,881,598 |
4.0% |
97,909,512 |
13.3% |
|
Scott |
4,162,545 |
48.3% |
1,088,773 |
326,632 |
4,320,308 |
3.8% |
4,688,422 |
12.6% |
|
Shelby |
8,716,947 |
47.8% |
2,195,086 |
658,526 |
9,031,722 |
3.6% |
9,766,198 |
12.0% |
|
Spencer |
4,307,344 |
47.4% |
1,527,555 |
458,267 |
4,524,562 |
5.0% |
5,031,405 |
16.8% |
|
Starke |
5,296,031 |
53.9% |
768,818 |
230,645 |
5,420,349 |
2.3% |
5,710,424 |
7.8% |
|
Steuben |
11,274,913 |
62.2% |
2,125,673 |
637,702 |
11,671,563 |
3.5% |
12,597,081 |
11.7% |
|
Sullivan |
3,872,530 |
43.3% |
803,354 |
241,006 |
3,976,886 |
2.7% |
4,220,382 |
9.0% |
|
Switzerland |
837,600 |
25.7% |
111,191 |
33,357 |
846,173 |
1.0% |
866,176 |
3.4% |
|
Tippecanoe |
42,794,340 |
56.0% |
13,302,893 |
3,990,868 |
45,029,226 |
5.2% |
50,243,960 |
17.4% |
|
Tipton |
3,704,009 |
45.4% |
748,880 |
224,664 |
3,806,006 |
2.8% |
4,044,001 |
9.2% |
|
Union |
1,311,548 |
36.1% |
370,443 |
111,133 |
1,351,667 |
3.1% |
1,445,278 |
10.2% |
|
Vanderburgh |
40,011,307 |
47.3% |
11,055,237 |
3,316,571 |
41,580,045 |
3.9% |
45,240,434 |
13.1% |
|
Vermillion |
3,533,242 |
48.9% |
807,824 |
242,347 |
3,651,750 |
3.4% |
3,928,268 |
11.2% |
|
Vigo |
30,616,189 |
57.2% |
6,682,446 |
2,004,734 |
31,762,896 |
3.7% |
34,438,548 |
12.5% |
|
Wabash |
7,626,489 |
52.1% |
2,305,012 |
691,504 |
7,986,762 |
4.7% |
8,827,400 |
15.7% |
|
Warren |
1,617,177 |
32.4% |
302,981 |
90,894 |
1,646,627 |
1.8% |
1,715,343 |
6.1% |
|
Warrick |
19,033,597 |
72.3% |
2,144,770 |
643,431 |
19,498,797 |
2.4% |
20,584,265 |
8.1% |
|
Washington |
3,769,148 |
40.6% |
971,476 |
291,443 |
3,887,474 |
3.1% |
4,163,567 |
10.5% |
|
Wayne |
16,142,899 |
46.1% |
4,529,445 |
1,358,834 |
16,769,321 |
3.9% |
18,230,973 |
12.9% |
|
Wells |
6,070,865 |
50.4% |
1,683,017 |
504,905 |
6,325,337 |
4.2% |
6,919,106 |
14.0% |
|
White |
7,067,040 |
46.8% |
1,857,521 |
557,256 |
7,327,836 |
3.7% |
7,936,360 |
12.3% |
|
Whitley |
6,695,477 |
48.6% |
1,602,707 |
480,812 |
6,929,152 |
3.5% |
7,474,393 |
11.6% |
|
Total |
1,770,645,789 |
51.7% |
403,390,946 |
121,017,202 |
1,833,249,888 |
3.5% |
1,979,326,302 |
11.8% |
|
Source: 2000 Payable Real Property Taxes Net Levy by Property Class and by County from Department of Local Government Finance |
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|
( web page http://www.in.gov/dlgf/pubs/taxbook/levy/table34.html ) |
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|
Notes: |
||||||||
|
(1) Manufacturing Inventory Tax = (Column D)(0.3) |
||||||||
|
(2) Residential Real Prop. Net Levy after Manufacturing Inventory Tax Shift = (Column B) + (Column E)(Column C) |
||||||||
|
(3) Percent Res. Real Prop. Net Levy Increase after Mfg. Inv. Tax Shift = (100)(Column F - Column B) / (Column B) |
||||||||
|
(4) Residential Real Property Net Levy after Total Inventory Tax Shift = (Column B) + (Column D)(Column C) |
||||||||
|
(5) Percent Res. Real Prop. Net Levy Incr. after Total Inv. Tax Shift = (100)(Column H - Column B) / (Column B) |
||||||||
|
Residential Real Property Tax Increases By County |
|||||||
|
From Manufacturing Inventory Tax Shift |
|||||||
|
(compiled March 17, 2003) |
|||||||
|
Column A |
Col. B 2002 Average Net Rate |
Column C Real Property Net Levy Incr. From Mfg. Inv. Tax Shift |
Col. D Average Net Rate (1) |
Col. E Net Rate Diff. (2) |
Column F Increase For $50,000 Residence (3) |
Column G Increase For $100,000 Residence (4) |
Column H Increase For $150,000 Residence (5) |
|
Adams |
2.5418 |
5.6% |
2.6841 |
0.1423 |
$71 |
$142 |
$213 |
|
Allen |
2.8703 |
3.3% |
2.9650 |
0.0947 |
$47 |
$95 |
$142 |
|
Bartholomew |
2.4388 |
4.0% |
2.5364 |
0.0976 |
$49 |
$98 |
$146 |
|
Benton |
2.4530 |
1.8% |
2.4972 |
0.0442 |
$22 |
$44 |
$66 |
|
Blackford |
3.2619 |
4.2% |
3.3989 |
0.1370 |
$68 |
$137 |
$206 |
|
Boone |
2.7849 |
2.3% |
2.8490 |
0.0641 |
$32 |
$64 |
$96 |
|
Brown |
2.0903 |
0.7% |
2.1049 |
0.0146 |
$7 |
$15 |
$22 |
|
Carroll |
2.5192 |
2.8% |
2.5897 |
0.0705 |
$35 |
$71 |
$106 |
|
Cass |
2.9659 |
5.3% |
3.1231 |
0.1572 |
$79 |
$157 |
$236 |
|
Clark |
2.9936 |
4.2% |
3.1193 |
0.1257 |
$63 |
$126 |
$189 |
|
Clay |
2.2191 |
2.7% |
2.2790 |
0.0599 |
$30 |
$60 |
$90 |
|
Clinton |
2.8542 |
3.0% |
2.9398 |
0.0856 |
$43 |
$86 |
$128 |
|
Crawford |
2.9592 |
1.2% |
2.9947 |
0.0355 |
$18 |
$36 |
$53 |
|
Daviess |
2.6354 |
4.0% |
2.7408 |
0.1054 |
$53 |
$105 |
$158 |
|
Dearborn |
2.6877 |
2.4% |
2.7522 |
0.0645 |
$32 |
$65 |
$97 |
|
Decatur |
2.0838 |
5.0% |
2.1880 |
0.1042 |
$52 |
$104 |
$156 |
|
DeKalb |
2.3640 |
7.1% |
2.5318 |
0.1678 |
$84 |
$168 |
$252 |
|
Delaware |
3.6936 |
4.2% |
3.8487 |
0.1551 |
$78 |
$155 |
$233 |
|
Dubois |
2.2258 |
5.8% |
2.3549 |
0.1291 |
$65 |
$129 |
$194 |
|
Elkhart |
2.6005 |
6.5% |
2.7695 |
0.1690 |
$85 |
$169 |
$254 |
|
Fayette |
2.9498 |
2.8% |
3.0324 |
0.0826 |
$41 |
$83 |
$124 |
|
Floyd |
2.9357 |
4.1% |
3.0561 |
0.1204 |
$60 |
$120 |
$181 |
|
Fountain |
2.1584 |
3.0% |
2.2232 |
0.0648 |
$32 |
$65 |
$97 |
|
Franklin |
2.0280 |
1.3% |
2.0544 |
0.0264 |
$13 |
$26 |
$40 |
|
Fulton |
2.5041 |
3.9% |
2.6018 |
0.0977 |
$49 |
$98 |
$147 |
|
Gibson |
2.7175 |
4.1% |
2.8289 |
0.1114 |
$56 |
$111 |
$167 |
|
Grant |
2.9511 |
4.1% |
3.0721 |
0.1210 |
$60 |
$121 |
$182 |
|
Greene |
2.6961 |
3.2% |
2.7824 |
0.0863 |
$43 |
$86 |
$129 |
|
Hamilton |
2.5413 |
1.7% |
2.5845 |
0.0432 |
$22 |
$43 |
$65 |
|
Hancock |
2.5832 |
2.2% |
2.6400 |
0.0568 |
$28 |
$57 |
$85 |
|
Harrison |
1.9270 |
2.4% |
1.9732 |
0.0462 |
$23 |
$46 |
$69 |
|
Hendricks |
2.8401 |
2.6% |
2.9139 |
0.0738 |
$37 |
$74 |
$111 |
|
Henry |
3.0868 |
3.5% |
3.1948 |
0.1080 |
$54 |
$108 |
$162 |
|
Howard |
2.6530 |
4.3% |
2.7671 |
0.1141 |
$57 |
$114 |
$171 |
|
Huntington |
2.7050 |
4.0% | |||||