Hendricks County Indiana Designated Rental For RE Taxes

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I have talked to the Hendricks County Assessors office a few times and it sounds like if you designate a property as a rental with the county they say it can (depending on the area and the current assessed value) save you money on real estate taxes.  There is a form you have to fill out the includes all the information on the rental (beds, baths, etc.) and the current rent.  

The county has different rental districts or areas of the county (from my understanding) that have a set lower assessed value.  If you designate your rental as a rental then you will pay the lower of the 2% of the non-rental assessed value or 2% of the rental assessed value.

For example:

  • Non-rental assessed value: $124,000, therefore RE taxes are $2,480/year (2%)

If designated as a rental with the county then:

  • Rental assessed value: $100,000, therefore RE taxes are $2,000/year (2%)

Has anyone that has properties in Hendricks County, Indiana ever designated their rental as a rental to lower the taxes?  I can see the benefit with lower RE taxes but is there a catch?

Any input is greatly appreciated.

I am in the middle of buying my 6th house in Hendricks County. I didn't know this! This is very helpful. Mine are definitely not designated as my primary residence, but I didn't know there was a separate rental category.

VERY interesting @Adam Smith !

I have a duplex under contract that I anticipated paying $3,300 in annual property taxes (using the Indiana online property tax estimator), but they came in at $2,650...so maybe its already designated as a rental property? Maybe?

Either way, great information Adam. Makes Hendricks County even more appealing!