Property Tax Basics

A certified public accountant (CPA) for decades, Curtis (Curt) L. Coonrod gained his expertise via work in the private and public sectors. Providing budgeting services to Indianapolis city and municipal governments through his firm Curtis L. Coonrod & Company, one field Curtis L. Coonrod is knowledgeable in is property taxes.

Property taxes refer to real assets, like buildings and their associated land, and tangible assets, like equipment. Local and state governments, and bodies like school districts, can levy property taxes on residential and commercial properties within their jurisdictions. They fund public goods like emergency services and hospitals, facilities like libraries, and infrastructural improvements.

Calculating the total amount due for a residential property involves each taxing body using the mill rate or taxing 0.1 cents per $1,000 the property is worth. The mill rate determines the percent tax levied on a property to generate the desired revenue amount. An assessor may use one or more methods to determine property value based on local real estate market conditions, the cost to build an equivalent home, or the cost to rent out the property. Once calculated, the assessor multiplies the home’s value by the percent determined by the mill rate calculation to reach the final bill owed.