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  • Report on Property Tax Exemptions, Deductions, and Abatements

    April 30, 2018

    Department of Local Government Finance

  • STATE OF INDIANA INDIANA GOVERNMENT CENTER NORTH

    100 NORTH SENATE AVENUE N1058(B) INDIANAPOLIS, IN 46204

    PHONE (317) 232-3777 FAX (317) 974-1629

    DEPARTMENT OF LOCAL GOVERNMENT FINANCE

    To: Senator Ryan Mishler, Chairman State Budget Committee

    From: Wesley R. Bennett, Commissioner Department of Local Government Finance

    Date: April 30, 2018

    Subject: Report on Property Tax Exemptions, Deductions, and Abatements – 2018

    This is the Department’s biennial report submitted to the State Budget Committee, in accordance with IC 6-1.1-33.5-2. This report is updated with data through tax payable year 2017 and is submitted to the Legislative Services Agency for distribution to all legislators. The report, prepared by the Department’s Data Analysis Division, presents an analysis of property tax exemptions, deductions, and abatements for the state in total and by county.

    To view the report, please visit the following website: www.in.gov/dlgf/. It is our hope that you find the information in this report useful and informative. If you have any questions about the data, or would like more information, please contact me.

  • Analysis of Property Tax Exemptions, Deductions and Abatements for Indiana Counties: Pay 2011-Pay 2017

    April 30, 2018

    Department of Local Government Finance 100 North Senate Avenue N1058 Indianapolis, Indiana 46204 Phone (317) 232-3777 Fax (317) 974-1629 http://www.in.gov/dlgf/

    Overview of Exemptions, Deductions, and Abatements Report ................................................ 4 Table 1: Assessed Value, Exemptions, Deductions & Abatements ....................................... 5 Table 2: Exemptions, Deductions, & Abatements .................................................................. 6 Table 3: Total Gross Assessed Value ..................................................................................... 16 Table 4: Real Property Gross Assessed Value ...................................................................... 18 Table 5: Personal Property Gross Assessed Value ............................................................... 20 Table 6: Total Net Assessed Value ......................................................................................... 23 Table 7: Real Property Net Assessed Value .......................................................................... 25 Table 8: Personal Property Net Assessed Value ................................................................... 27 Table 9: Total Exemptions, Deductions & Abatements ....................................................... 30 Table 10: Total Exemptions ...................................................................................................... 32 Table 11: Total Deductions & Abatements ............................................................................. 34 Table 12: Real Property Exemptions, Deductions & Abatements ........................................ 37 Table 13: Real Property Exemptions ....................................................................................... 39 Table 14: Real Property Deductions & Abatements .............................................................. 41 Table 15: Standard Deductions ................................................................................................ 44 Table 16: Supplemental Homestead Deduction ...................................................................... 47 Table 17: Mortgage Deductions ............................................................................................... 50 Table 18: Real Property Rehabilitation & Economic Revitalization Abatements .............. 55 Table 19: Over 65 Deductions .................................................................................................. 58 Table 20: Real Property Veteran Deductions ......................................................................... 62 Table 21: Blind or Disabled Deductions .................................................................................. 65 Table 22: Energy Systems Deductions ..................................................................................... 68 Table 23: Fertilizer Storage Deductions .................................................................................. 71 Table 24: Real Property Investment Deductions .................................................................... 74 Table 25: Model Residence Deductions ................................................................................... 77 Table 26: Residence in Inventory Deductions ......................................................................... 80 Table 27: Heritage Barn Deductions ........................................................................................ 83

  • Table 28: Personal Property Exemptions, Deductions & Abatements ................................. 86 Table 29: Personal Property Exemptions ................................................................................ 88 Table 30: Personal Property Deductions & Abatements ....................................................... 90 Table 31: Personal Property Economic Revitalization Area Abatements............................ 93 Table 32: Enterprise Zone Deductions .................................................................................... 96 Table 33: Personal Property Veteran Deductions ................................................................ 101 Table 34: Business Investment Deductions ........................................................................... 104 Table 35: Exemption-Code Cite Cross Reference ................................................................ 106

  • Overview of the Exemptions, Deductions, and Abatements Report

    This report presents a detailed analysis of local property tax exemptions, deductions, and abatements in Indiana counties. The terms “exemption,” “deduction,” and “abatement” are used broadly to include a wide variety of tax preference items that reduce tax liability of different classes of taxpayers. The data presented in this report are drawn from County Auditor Abstracts (summaries of assessed value and taxes charged by taxing district) from Pay 2011 to Pay 2017. The Exemptions, Deductions, and Abatements study is updated every two years as required by IC 6-1.1-33.5-2. The report does not include a discussion of the theoretical considerations of tax exemptions, nor does it contain any recommendations as to the retention or removal of existing exemptions.

    Tables 1 and 2 and Figures 1 through 7 provide an overview of the scope and effect of these mechanisms that reduce taxable assessed value.

    4

  • Table 1 shows a broad picture at the state level of changes in the property tax base, in total and separated by real and personal property components. With 92 counties reporting, the gross assessed value of both real and personal property combined for Pay 2017 totals $492.8 billion.

    Table 1: Assessed Value, Exemptions, Deductions & Abatements (in Millions of Dollars)  Pay  2011 

    Pay  2012 

    Pay  2013 

    Pay  2014 

    Pay  2015 

    Pay  2016 

    Pay  2017 

    Average  Annual  Increase  2011‐ 2017 

    Annual  Increase  2016‐2017 

    Gross Assessed Value of All  Property 

    456,100  456,500  452,400  457,100  471,100  482,500  492,800  1.3%  2.1% 

    Total Exemptions  21,800  22,000  21,100  21,500  22,200  22,300  22,700  0.7%  1.8% 

    Total Deductions  134,700  134,300  132,800  129,900  132,500  135,300  139,000  0.5%  2.7% 

    Total Abatements  8,100  7,000  6,000  6,600  8,700  9,600  8,800  1.4%  ‐8.3% 

    Total Exemptions, Deductions &  Abatements 

    164,600  163,400  159,900  158,000  163,400  167,200  170,500  0.6%  2.0% 

    Net Assessed Value of All  Property 

    291,500  293,100  292,500  299,100  307,700  315,300  322,400  1.7%  2.3% 

    Gross Assessed Value of Real  Property 

    408,600  408,500  403,100  405,900  415,800  424,300  433,700  1.0%  2.2% 

    Real Property Exemptions  19,400  19,700  18,400  18,800  19,100  19,300  19,700  0.3%  2.1% 

    Real Property Deductions  134,500  134,100  132,600  129,600  132,100  134,800  138,400  0.5%  2.7% 

    Real Property Abatements  2,700  2,300  2,000  1,900  1,900  2,100  2,400  ‐1.9%  14.3% 

    Real Property Exemptions,  Deductions & Abatements 

    156,600  156,100  153,000  150,200  153,100  156,200  160,500  0.4%  2.8% 

    Net Assessed Value of Real  Property 

    252,000  252,400  250,100  255,700  262,700  268,100  273,200  1.4%  1.9% 

    Gross Assessed Value of  Personal Property 

    47,500  48,000  49,300  51,100  55,300  58,200  59,100  3.7%  1.5% 

    Personal Property Exemptions  2,400  2,300  2,600  2,700  3,100  3,000  3,000  3.8%  0.0% 

    Personal Property Deductions  200  200  200  300  400  500  500  16.5%  0.0% 

    Personal Property Abatements  5,400  4,700  4,000  4,700  6,800  7,500  6,400  2.9%  ‐14.7% 

    Personal Property Exemptions,  Deductions & Abatements 

    8,000  7,300  6,900  7,700  10,300  11,000  9,900  3.6%  ‐10

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