Wednesday, February 1, 2012

Farmland Assessments Rise Again

Here comes this column topic again: property taxes on farmland are increasing. The base rate for the assessment of an acre of farmland was $1,290 for taxes in 2011. It will be $1,500 per acre for taxes in 2012. And the state's Department of Local Government Finance has announced the base rate will be $1,630 for taxes in 2013.

Farmland is assessed starting with this base rate. It is multiplied by a soil productivity factor, which varies from about 0.5 to 1.3, based on soil type. Some acreage is adjusted by an influence factor, a percentage reduction that accounts for factors such as frequent flooding. The result is the assessed value of farmland. That assessment times the property tax rate, less any credits, is the tax bill.

The base rate is adjusted each year with a formula. The DLGF offers the details on its website, at http://www.in.gov/dlgf/7016.htm. It's complicated, but three of its features tell the story. <Read More>

No comments: