(UNDATED) - A Purdue Extension agricultural economist says Indiana's farmland owners will pay higher property taxes in 2014 on the heels of an increase in the base rate for assessed land value.
Larry DeBoer says the base rate, which is the starting point for calculating taxes on farmland, jumped from $1630 per acre in 2012 to $1760 for 2013. Taxes assessed on this year's base rate will be paid in 2014.
DeBoer says the value of Indiana farmland is assessed based on use value rather than market value. So, even if a parcel of farmland borders commercial or residential development, it is assessed based on the income it can generate from farming, not the selling price.
When determining property taxes, Indiana's Department of Local Government Finance takes into account the base rate, a productivity factor and an influence factor. Productivity factors are based on the soil's productivity for growing corn.
They are scheduled to rise for taxes in 2014, but according to DeBoer, bills have been proposed in the General Assembly to cancel that change.
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