2. TAX SOURCES FOR GOVERNMENT
Delaware County and all government
agencies are funded by 2 main tax
sources
1. Property tax.
2. Income tax on wages.
3. OTHER COUNTY TAXES
Two other taxes help fund some
government services
1. Wheel tax
2. Food & beverage tax
4. 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
5. 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.
6. 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
7. 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%
8. 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
9. COMMON 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.
10. 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.
11. 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.
12. 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
13. 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.
14. 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.
15. COUNTY ECONOMIC DEVELOPMENT INCOME
TAX (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.
16. 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).
17. 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
