Porter County Government provides insight on how local residents can manage tax increases

Many residents have an ongoing concern with taxes being too high and too complex. While this takes place in every county throughout the country, many residents remain confused about the process. Porter County Government encourages all of its residents to be informed about their taxes and ask questions especially if they feel like the tax is too high.

Porter County Treasurer Jimmy Albarran has seen the county’s tax increase in recent years first-hand and is hopeful the recent changes made by The Indiana State Legislature may provide some relief locally.

“The current property tax system was designed to give local government a very stable income with some annual increase,” Albarran said. “This continued during COVID and allowed increases even as people lost income. Inflation also grew during this period making government more expensive. The State Legislature passed a series of changes to property taxes. These changes are meant to hold back some of the increases and make local government tighten its belt.”

According to Albarran, many people keep an eye on their property assessment going up, believing the assessment is the cause of tax increases.  He says this is generally not so, the total cost of local government is the cause, with inflation being a factor.

“The assessment represents the taxpayers share of the tax levy being collected,” Albarran said. “Their assessment or share is different if they live in a mansion as opposed to a shack. If their assessment goes up or down, the county is still collecting the levy.  An increase or decrease in assessment does not change the total amount collected the by county, it changes only their share of the total levy.”

“Every year, people get an assessment in the mail from the assessor,” Albarran added. “When they get that assessment is when they need to deal with it because they only have so many days to respond. If they wait until they see the tax bill, it will be too late to appeal. They don’t know what their tax is going to be, but they can determine whether the assessment is fair to the market, and that’s what they want to do. If they want to fight general increases in tax, they have to look at the levy.”

Every year the county collects in property tax what is approved by the state for the tax levy of each unit of government. The levy is based on each government unit budget plus a growth quotient calculated by the state to limit increases. Albarran believes there isn’t enough resistance against the levy increases because it requires monitoring all the taxing units, county, township, city, school and library. 

“When you look at a bill, you’re seeing the assessment times tax rate. You’re not seeing the levy. You can prevent increases if you focus on the levy. Pressure needs to be applied when those budgets are being reviewed each year,” Albarran said.

While tax increases can be dicey to figure out, the Porter County Government is motivated to assist with questions, comments, or concerns regarding your assessment and tax bill. Moving forward, there will be a change in property deductions for Porter County residents, especially seniors.

“With the new legislative changes coming, people may be caught by surprise if they aren’t up to speed. The senior property tax deduction has been changed to a credit with less restrictions. The income restrictions for a senior tax deduction used to $40,000 annual income when married, and it’s now up to $70,000, so it’s a $30,000 difference. Single seniors can earn up to $60,000 and still qualify. The restrictions on property value have been wiped away completely. Seniors who already have the deduction will automatically be signed up for the new credit, while other Seniors will want to check with the Auditor about signing up,” Albarran said.

For more information on the Porter County Government, you can visit portercountyin.gov.