Property tax credit of up to $150 set for homeowners in 2023 – Inside INdiana Business
A property tax credit that will give Indianapolis homeowners up to $150 off their spring bills has passed the city council unanimously and received the mayor’s signature.
Under the $27 million allowance, those with property valued at less than $250,000 will receive a $150 tax credit. Those whose property is worth between $250,000 and $400,000 will receive a tax credit of $100. Homeowners whose property is valued at more than $400,000 will not receive credit.
The tax credit is for single family properties or owner occupied single family residential properties. Ninety percent of Indianapolis homesteads, or 191,500 individual properties, are eligible for credit. Credit is a big priority in the city’s 2023 budget.
Mayor Joe Hogsett pointed to the passing of the proposal in the front yard of residents Tim Rice and Kathy Allender Rice on Thursday. The couple’s home is an example of how Indianapolis real estate values have been hit by rising demand and inflation.
“Their Riverside home has seen a 50% increase in appraised value over the past two years,” Hogsett said.
Tim Rice grew up in the Riverside neighborhood. He said the tax relief gives the couple one less thing to worry about.
Average property values increased 18% for taxes payable in 2023 compared to 2022, from about $190,000 to nearly $225,000, according to a city presentation.
A map provided by the city shows that downtown areas have seen some of the largest increases in gross assessed value. Parts of City Council President Vop Osili’s district, which includes Riverside, saw home values increase by more than 30% between 2022 and 2023 assessments.
Osili spoke at the event in favor of the tax relief, but acknowledged that more needs to be done.
“The work certainly doesn’t stop there,” Osili said. “There continue to be significant racial disparities in homeownership, especially with redlining. According to SAVI, black borrowers were twice as likely as white borrowers to be denied loans, even when their incomes and debts are the same.
Renters are also being affected by rising home values, Hogsett said, which is why the city continues to fund a tenant legal assistance program and IndyRent, which provides eviction assistance funding.
Hogsett signed the proposal at the event, and the 2023 budget is expected to be finalized by the end of October.