Presentation on theme: "D ELAWARE C OUNTY T AXES How they are collected and where they go."— Presentation transcript:
D ELAWARE C OUNTY T AXES How they are collected and where they go.
T AX SOURCES FOR GOVERNMENT Delaware County and all government agencies are funded by 2 main tax sources 1. Property tax. 2. Income tax on wages.
O THER C OUNTY TAXES Two other taxes help fund some government services 1. Wheel tax 2. Food & beverage tax
P ROPERTY TAXES Property taxes are the main source of funding for local Indiana government. Taxes levied on real property and business property Capped as a percentage of assessed value by state law
M AXIMUM PROPERTY TAX RATE Homestead property (your primary residence) 1% Other residential and agricultural property 2% Commercial, industrial, and personal property 3% Taxes cannot exceed these rates, even if it requires a reduction in the budgets of governmental units.
C OMMON PROPERTY TAX DEDUCTIONS Several property tax deductions are available to qualified homeowners. The most common deductions are: 1. Homestead 2. Mortgage 3. Other deductions are available for a variety of circumstances including being over 65 with a limited income or being a disabled veteran.
H OMESTEAD DEDUCTION The total amount of homestead standard deduction for properties with value of $200,000 or less, which an individual may receive for a particular year, is the lesser of: (1) sixty percent (60%) of the assessed value of the real property or mobile home; or (2) forty-five thousand dollars ($45,000). High value homes qualify for a supplemental homestead deduction in addition to the standard deduction.
H IGH VALUE HOME DEDUCTION The supplemental deduction is calculated at 35% of assessed value for properties with assessed values between $200,000 to $600,000 and at an additional 25% of assessed value for properties above $600,000. All homestead deductions must be filed by January 5 for residences or March 31 for mobile homes.
M ORTGAGE DEDUCTION You can take a mortgage deduction if you have a mortgage on your primary residence. The deduction is whichever is the least of the following: (1) The balance of the mortgage or contract indebtedness on the assessment date of that year; (2) One-half (1/2) of the assessed value of the real property, mobile home or manufactured home; or (3) Three thousand dollars ($3,000). Must be completed by December 31
L OCAL INCOME TAXES Delaware County collects two different local option income taxes; County Option Income Tax (COIT) and County Economic Development Income Tax (CEDIT). Both taxes are collected as part of your state income tax payment and are due April 15 th.
C OUNTY O PTION I NCOME TAX (COIT) This tax is collected at a rate of.6% of wages earned by county residents. Non-residents who work in Delaware County pay 25% of the resident tax rate (.15%). Revenue from this tax is split proportionally between all county units of government that receive property taxes.
C OUNTY E CONOMIC D EVELOPMENT I NCOME T AX ( CEDIT ) Collected at a rate of.4% on wages earned by all people who are employed in Delaware County whether they reside therein or not. 0.2% of this tax is distributed proportionally to Delaware County government and all cities and towns therein. 0.2% is used as Homestead Credit relief.
O THER TAXES Wheel Tax: Must be used for road improvement per county statute. Food and Beverage tax: This is used to fund the operations of the Delaware County Civic Center Authority (the convention center in downtown Muncie).
W HEEL TAX RATES : Passenger cars and light trucks$25 Motorcycles$15 Busses$40 Recreational vehicles$40 Semi-trailers$40 Tractors $40 Light trailers (less than 12,000 lbs)$ 5 Heavy trailers (12,000 lbs and greater)$40 Trucks (greater than 11,000 lbs)$40
S OME SERVICES FUNDED BY TAXES Animal control Beach Grove Cemetery