Whether you support the Knox Elementary School Palmer Wing project or not, no one enjoys paying higher taxes. One way to reduce the impact of the possible increase in the property tax rate for those in the Knox school district is to take advantage of all the property tax deductions for which you are eligible, effectively lowering your assessed property value and reducing the amount of taxes you’re responsible for paying.
Some of the common exemptions include the mortgage deduction, homestead credit or standard deduction, the over 65 exemption, the disabled or blind exemption, and exemptions for totally disabled veterans and partially disabled veterans.
The mortgage credit reduces your assessed property value by $3000, but requires you reside on real estate located in Indiana and pay a mortgage. Only one mortgage exemption may be claimed, including mobile homes, and this exemption may be combined with all other qualifying exemptions. The homestead credit, or standard deduction, is a calculated deduction applied to only one home – typically the home in which you most commonly reside. This credit can only be applied to one property.
The exemption for those over the age of 65 may only be combined with the mortgage and homestead deductions and reduces your assessed property value by $12,480. The disabled or blind exemption requires a letter from the Social Security Administration verifying your disability and may be combined with all other exemptions except the deduction for those over the age of 65.
The totally disabled veteran exemption applies to veterans who own real or personal property in Indiana, served or had a spouse that served in the U.S. Military for at least 90 days, was discharged honorably, and is either totally disabled or over the age of 65 and at least 10 percent disabled with written evidence of the disability. Also, the assessed value of real and personal property combined cannot exceed $113,000. This credit would reduce the assessed property value by $12,480.
The partially disabled veteran exemption reduces the assessed property value by $24,960, and requires that the individual own real or personal property in Indiana, served or had a spouse that served in the U.S. Military for at least 90 days, was discharged honorably, suffered a service-connected disability of at least 10 percent with written evidence of the disability, and is not claiming the deduction for surviving spouses of WWI veterans.
The Palmer Wing project is estimated to cost not more than $16 million and is estimated to increase the property tax rate of $0.2802 per $100 of assessed valuation. Ensuring you are receiving all the deductions for which you qualify is the best way to cut down on the amount you pay in property taxes. For more information on property tax credits and deductions, call the Starke County auditor’s office at (574) 772-9101.