In my July 16th post about the Hamilton Southeastern (HSE) Schools referendum, there was an effort on my part to express that there are many aspects and angles to explore when looking at an Indiana school district tax rate, or any local property tax rate.

Local governments have some control over the property tax rate rate for their unit of government, but even then there are strict rules state law prescribes on how that is handled.  But there is another component many residents in the Fishers area have experienced lately – a higher property tax bill due to increasing valuation of property.

The HSE Schools have a property tax rate, including a .2275 operating referendum rate since 2017.  in 2016, voters overwhelmingly approved the operating referendum rate.

When property values rise, property taxes rise.  That happens even when the tax rate remains steady.  That is prescribed in state law.

Indiana lawmakers did respond to complaints about property values leading to higher tax bills, but any relief will not be experienced until next year, based on what the General Assembly enacted in the 2023 session.

So, higher property values can lead to higher tax bills even when the local rate is unchanged.

It should be noted that if voters approve, the HSE operating referendum tax rate of .1995 would continue for 8 years, beginning in 2024, unless the school board chooses to lower the rate in a given year.

It should also be noted that we have been in a period lately where property values have been going up, largely due to the demand for housing in the area.  There is no guarantee that property values will continue to rise in future years.  Plus, Indiana lawmakers have the option of making changes to the property tax system anytime.

As I have written before, there are many aspects and angles to the property tax referendum vote coming in November.  The issue of property values going up is just one more of those.