Laserfiche WebLink
CITY OF SOUTH BEND I OFFICE OF THE CLERK <br /> have been the amount of taxes that we as City would have received. We have the gross annual <br /> taxes, which would have been divided up between different districts, but the circuit breaker tax <br /> credit essentially introduced this bottom portion of this property tax calculation. In addition to <br /> calculating gross annual taxes, you calculate what is called your circuit breaker maximum tax, <br /> which is your gross assessed value times your circuit breaker cap which is one percent (1%), two <br /> percent (2%), or three percent (3%) depending upon what type property it is. That's your circuit <br /> breaker maximum tax. Most counties in Indiana, unless they passed a referendum, define that as <br /> the maximum tax that the individual tax payer can pay for a particular property. However, St. <br /> Joseph County is one (1) of two (2) counties that had an additional tax laid on top of that circuit <br /> breaker maximum tax and this tax is due to property tax cap exempt rates. There were two (2) <br /> counties, St. Joseph Countyand Lake Count that had debt issues prior to the circuit breaker <br /> p Y� <br /> maximum tax credit being put into place. We were exempt for ten (10) years from the circuit <br /> breaker maximum tax. We actually got a little bit additional on top of that maximum. That <br /> additional tax of the maximum and what is going to waste. So that's the difference between what <br /> is currently going on and what we expect from last year. I have two (2) examples of how this <br /> works. So, we have on the left the net assessed homestead gross annual taxes, which is just net <br /> assess value times your tax rate. You have a maximum tax, which is just your growth assessed <br /> value times one percent(1%)in this case because it's a homestead meaning the maximum that this <br /> property ownership pays on this$100,000 home is$1,000.But because we are in St.Joseph County <br /> there is this additional one hundred and thirty-nine dollars ($139) that we receive back. That one <br /> hundred and thirty-nine dollars ($139) is what is going to be keep taking away. Instead of getting <br /> $1,139 for this property, we get a thousand up front. Now one hundred and thirty-nine dollars <br /> ($139) does not seem like a lot of money but if you move that to a commercial property worth a <br /> million dollars at a three percent (3%) tax cap, that could be move $3,876 for just that one (1) <br /> property. <br /> He went on, This particular issue can be very significant for not just us as the taxing agency but <br /> any taxing district that is going to be subject to this including school districts, the county, and the <br /> library. It's going to be very significant in terms of the impact that this is going to have. In terms <br /> of how significant, we estimate, our best estimate currently, is that this will have an impact of <br /> negative$1.93 million in revenue. That decrease, relative to the tax-exempt tax,is going to reduce <br /> revenue by $1.93 million. This chart up here shows the difference between our gross levy, which <br /> is the total bar, and our net levy, which is that blue bar. The red bar is all of the money that was in <br /> the property tax cap. The difference between the total amount that they would have paid if there <br /> was no property tax cap and what property tax was actual paid because of the property tax caps. <br /> Any questions on property taxes? <br /> Councilmember Tim Scott asked,Then with all this said,it is very important that the Assessor gets <br /> the assessments correct, right? Also, whether something is a single-family rental unit versus a <br /> single-family home? <br /> Mr. Parker answered, Absolutely. Classification is extremely important and assessment is really <br /> what drives all of our property taxes growth now. So, this model which shows us losing $1.93 <br /> million actually assumes a two percent (2%) growth in net assessed value. Even with assumed <br /> growth in net assessed value, we are projecting to lose money. If that growth doesn't occur that <br /> number could go up. Without control or say over our tax rate for most of our taxing funds, the <br /> assessed value is driving all of our property tax growth. <br /> EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION EMPOWERMENT <br /> 455 County-City Building i 227 W.Jefferson Bvid South Bend,Indiana 466011 p 574.235.9221 f 574.235.9173 I TTD 574.235.55671 www.southbendin.gov <br /> 4 <br />