In 2016, some Carmel homeowners saw their property taxes increase, but this year many will see a decrease, according to recently confirmed tax rates from the City of Carmel.
Taxes increased from 70.07 cents per $100 in 2015 to 83.56 cents per $100 in 2016. Carmel Mayor Jim Brainard said the tax increase was due to a larger city budget and because of a one-time appeal to the state to recoup more than $4 million in miscalculated taxes during the annexation of West Clay. That accounts for about 6 cents per $100 of the 2016 city rate increase.
That 6 cents per $100 peels off for 2017, and the 2017 city rate will be $0.7895, only slightly higher than the $0.7885 expected when the budget was adopted.
“It’s always an estimate, because we don’t know from the state,” Brainard said.
All of the tax rates are for the city rate only and do not account for county taxes, library taxes and other taxes that make up the entire property tax bill for homeowners.
In 2016, the typical owner of a $200,000 home paid $2,024 per year in city taxes. In 2017, it will be $1,979. This doesn’t account for changes in the assessed value of a home.
“In the future, we believe the tax should stay the same, around this amount,” Brainard said.
Brainard said there are some corrections to be made with the state before the rate will be finalized. Curt Coonrod, a financial consultant for the City of Carmel, discovered that the Indiana Department of Local Government Finance omitted the appropriations, rates and levies for the series of property tax bonds issued in 2016. Brainard said it appears to be a simple oversight. Coonrod will draft a response asking the state to correct it. If not corrected, it could affect the tax rate.