DELAWARE COUNTY TAXESHow they are collected and where they go.
TAX SOURCES FOR GOVERNMENT Delaware County and all government agencies are funded by 2 main tax sources1. Property tax.2. Income tax on wages.
OTHER COUNTY TAXES Two other taxes help fund some government services1. Wheel tax2. Food & beverage tax
PROPERTY 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
MAXIMUM 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.
DELAWARE COUNTY PROPERTY TAXES % of Delaware County 4.12% 0.43% Net Property Taxes Due by Property Class 7.03% 0.02% in 2010 Paid in 2011 Residential Commercial Personal 14.85% 40.28% Agricultural Industrial Utility 34.14% Exempt
HOW PROPERTY TAXES WERE DISTRIBUTED % of Net Property Taxes Received by Delaware County Government Units in 2011. 3.43% 4.35% Schools 10.42% City/Town 32.47% County Special 19.9% Library Township 29.48%
HOW THE TAX DOLLARS WERE SPENT How Did Delaware County Government Units Spend Tax $s Paid in 2011 ? 13.31% 15.72% Operating Budgets Debt Retirement 70.97% Capitol Outlays
COMMON PROPERTY TAX DEDUCTIONS Several property tax deductions are available to qualified homeowners. The most common deductions are:1. Homestead2. Mortgage3. Other deductions are available for a variety of circumstances including being over 65 with a limited income or being a disabled veteran.
HOMESTEAD 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.
HIGH 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.
MORTGAGE 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
LOCAL 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 15th.
COUNTY OPTION INCOME 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.
COUNTY ECONOMIC DEVELOPMENT INCOMETAX (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.
OTHER 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).
WHEEL 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
SOME SERVICES FUNDED BY TAXES Animal control Beach Grove Cemetery