Partners for Good, LLC

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• Partners for Good, LLC
• Local Government Academy
• Center for Sustainable Regional Vitality
• Indiana Business Research Center, Kelley School
  of Business,
• Indiana University

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Why this study now?

• Massive confusion, anxiety, anger over property
  taxes
• Reassessment
• High cost of government services
• Higher bills
• Lack of information, lack of understanding
• Knee-jerk responses
• Bad decisions

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Goals of this study

• Provide information on what caused changes in
  property taxes and detailed data on what actually
  happened to property tax bills in Lake County.
  (assessed value, homestead exemption credit)
• Examine the patterns of local government revenues
  and spending in Lake Co. as compared to other
  places in the state. (libraries, schools,
  police)

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The simplified view of property taxes
Government Spending
Tax rate
Assessed Value

• What are the forces driving spending?
• How do Lake County governments compare with
  each other and others around the state in
  spending levels?
• How have actions of the legislature reduced or
  increased assessed values?

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Preliminary analysis of the two percent cap for
taxes on homestead properties

• Of 249,600 parcels in Lake County
• 122,900 (49.3) had homestead exemptions and of
  these
• 31,200 (25.4) had tax bills in excess of 2 of
  Gross Assessed Value (GAV) and were eligible for
  the 2 cap.

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25.4 of all homesteads eligible for the 2 cap,
but it varies by township
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Examples
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The 2 cap lowers the tax burden for homes of all
value levels

• Homes valued at less than 50,000 or less were
  scheduled to pay about 2.07 of GAV in property
  taxes.
• The cap brought them down to around 1.62 of
  GAV.
• Homes with GAV of 1 million or more would have
  paid 2.2 of GAV in taxes.
• With the 2 cap they come down to 1.98 of GAV.

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Percent of tax relief by value of property in
Lake County
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54.4 of all homesteads in Lake County are in
North and Calumet Twps.
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North and Calumet Twps. Have 97 of all
homesteads in Lake County that are eligible for
the 2 cap
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The 2 cap provides 15.7 million in tax relief
of which 98.2 goes to homeowners in North and
Calumet townships
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The 2 cap cuts tax bills for homeowners by 7.1
county-wide, but is of consequence mainly in
North and Calumet townships
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Objectives of study

• Provide information on what caused changes in
  property taxes and detailed data on what actually
  happened to property tax bills in Lake County.
  (assessed value, homestead exemption credit)
• Examine the patterns of local government revenues
  and spending in Lake Co. as compared to other
  places in the state. (libraries, schools,
  police)
• Offer policy recommendations for changes.
• Provide a long-term means of assessing local
  government performance.
• Inform the public about local government finances
  in Lake County.

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Study Web Site

• www.ibrc.indiana.edu/lakegov
• For more information, please contact
• Tracey Foreman
• tracey_at_partners4good.com
• 219-789-7341