Civil Engineer · Firestone, CO · Member since 2013 · 85 posts · 21 votes
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?
Rental Property Investor · Plainfield, IN · Member since 2018 · 17 posts · 8 votes
8y
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.
Rental Property Investor · Plainfield, IN · Member since 2018 · 17 posts · 8 votes
8y
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.
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!
Los Angeles · Member since 2020 · 9 posts · 1 vote
5y
@Adam Smith - Curious did you ever get this classification? Are you paying ~2% of assessed value (lower of the two options)? What's your experience been like with property taxes over the last couple years
Received a similar worksheet to fill out. Does it really reduce the taxes? Or just the assessed value would be lower, but then the % tax rate would be higher?