September 20, 2022

Impact of Annexation on Counties, Cities, Towns, and Townships

Written by: Curtis L. Coonrod and Benjamin W. Roeger If a city or town annexes territory, the county, and township lose revenue, right? Yes, but maybe not as much as you might think. There are many misconceptions about what happens to local revenue when a city or town annexes territory.   Here is a basic outline: Effect of Annexation on Cities (or Towns), Countries, and Townships (A) After annexation, the county and township may reduce their property tax levies voluntarily, but they are not required to do so. (B)  I.C. 6-1.1-18.5-12 and 13 (C)  If the LIT distribution of any unit is increased, as usually happens when a city or town annexes territory, the increase to that unit is made up […]
July 19, 2022

Property Tax Shortfalls are Common. Here’s how to Recover the Revenue.

Written by: Curtis Coonrod and Benjamin Roeger [Revised: 7/22/2022] A common occurrence amongst cities, towns, counties, and townships is that they often do not receive the full amount of property tax revenue that was approved in their respective original budgets. This issue can often be resolved, but it requires action on the part of local officials. A comparison between the amount of property tax revenue received and the amount expected in the original budget will typically reveal a discrepancy.  And while there exists a great deal of variance between the amounts associated with such shortfalls, it nevertheless remains prudent to compare how much is actually received to the budget. Unfortunately, a portion of this discrepancy may be due to circuit […]
July 8, 2022
This image is placed here to illustrate money being saved for a rainy day.

2022 Rainy Day Funds per Civil City

May 20, 2022

Reallocate Rate Cap Credits

Written by: Curtis L. Coonrod, CPA, and Benjamin W. Roeger, CPA [Written: 10/19/21, Revised: 5/20/22] Property tax draws for most cities, towns, townships, and counties are reduced by rate cap credits. Rate cap credits are usually allocated in proportion to the size of each fund that has a property tax levy, except for debt service funds. However, the city or other local unit can change that allocation.  For example, suppose the Assistance Fund has $10,000 of rate cap credits and needs more money. The local government can reduce all or some of the Assistance Fund rate cap credits – up to the full $10,000 and increase the rate cap credits by a like amount in other funds.  The result?  Up […]
May 6, 2022

2022 City Tax Rates per Civil City