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Property Tax Information
The ownership of real estate is subject to certain government powers. One of these is the right of state and local government to impose taxes to pay for their functions. Because the location of real estate is permanently fixed, the government can levy taxes with a high degree of certainty that the taxes will be collected.
There are two types of real estate taxes: general real estate taxes (ad valorem) and special assessments or improvement taxes. The general real estate tax or ad valorem tax for Pike Township is made up of the taxes levied on real estate by various government agencies and municipalities.
| Pike Township Schools |
53.30374 |
Public Assistance
(State Welfare)
(County Health & Hospital) |
13.17651 |
| City of Indianapolis |
10.95428 |
| County |
10.45125 |
| Metro Emergency Communication |
0.45865 |
| Township Fire & Administration |
8.15505 |
| Other – State, Libraries |
3.50052 |
Ad valorem is Latin meaning according to value. Ad valorem taxes are based on the value of the property being taxed.
Exempt from general taxes.
State laws exempt certain real estate from taxation. Such property must be used for tax-exempt purposes, as defined in the statutes. The most common are
- Cities
- Schools, Parks and Playgrounds
- State and Federal Governments
- Churches and Charitable Organizations
- Hospitals
- Educational Institutions
Special Assessment
Taxes levied on real estate to fund public improvements to the property. Property owners in the area of the improvements are required to pay for them because their properties benefit directly form the improvements.
(Examples are: installing paved streets, curb, sewers and street lights)
Assessment
Real estate is valued for tax purposes by county or township assessors. This process is called assessment. A property's assessed value is based on the reproduction cost and the sales price of comparable properties. Land values may be assessed separately from buildings or other improvements. Different valuation methods may be used for different types of property.
A property owner may feel that that an error was made in determining the assessed value of his or her property. Such owners may present their objections to the Property Tax Assessment Board of Appeals (PTABOA). Appeals regarding tax assessment may ultimately be taken to court.
Equalization
When it is necessary to correct inequalities in statewide tax assessment an equalization factor is used to achieve uniformity. An equalization factor may be applied to raise or lower assessments in a particular district or county. The assessed value of each property in the area is multiplied by the equalization factor, and the tax rate is then applied to the equalized assessment.
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