Indiana Farmland Owners Brace for Higher Property Taxes in 2014
Agriculture economist says that base rate for assessed land value to increase
By Amanda Brodhagen, Farms.com
Indiana farmland owners should expect to pay higher property taxes in 2014 says Purdue Extension agricultural economist Larry DeBoer.
The expected increase in property taxes is due to the increase in the base rate for assessing land value. The base rate is the starting point for calculating taxes for farmland. It has increased from $1,630 per acre in 2012 to $1,760 for 2013; taxes assessed on this year’s base rate will be paid in 2014.
The trend of increased base rate has doubled in the past seven years; in 2007 it was only $880 per acre. In Indiana, farmland is assessed on the use value compared to the market value – it is based on the income that the land can generate, not the actual selling price.