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Description
The latest video in the series, Annexation: An Inside Look, covers how annexation will affect property taxes.
Communications Director Yael Ksander and City Attorney Mike Rouker discuss the tax impacts of annexation including seniors living on a fixed income and when home owners can expect changes to take effect.
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Learn more at bloomington.in.gov/annex.
A
A
I'm
so
glad
you're
here
mike,
because
annexation
can
be
pretty
complicated
and
there
are
a
lot
of
specific
questions
that
folks
want
to
know.
Answers
to
today,
we're
going
to
be
specifically
talking
about
tax
impacts,
and
we
thought
you
were
just
the
man
to
explain
those
you
make
me
sound
impressed.
B
Yeah,
that's
a
that's
a
really
important
question,
so
everyone
who
owns
property
in
the
state
of
indiana
they
pay
property
taxes,
except,
of
course,
for
those
few
folks
who
are
lucky
enough
to
be
tax-exempt
entities.
They
don't
pay
property
taxes,
of
course,
and
we
pay
those
property
taxes
to
fund
a
variety
of
government
services.
So
when
you
pay
your
property
taxes,
some
of
those
go
to
the
school
system
to
fund
the
school
system,
some
go
to
the
library
to
fund
the
library,
some
go
to
the
monroe
county,
solid
waste
district.
B
Some
of
your
funds
go
to
some
of
your
property
taxes
go
to
fund
the
the
county
government.
If
you
live
outside
the
town
of
ellisville
or
the
city
of
bloomington,
some
of
your
property
taxes
most
likely
go
to
fund
the
fire
protection
district.
If
you
live
in
an
incorporated
area,
so
the
town
of
ellisville
or
the
city
of
bloomington,
you
also
pay
some
taxes
to
the
city
or
the
town
respectively
after
annexation.
B
Some
folks
who
weren't
previously
paying
taxes
to
the
city
of
bloomington,
will
begin
to
pay
some
taxes
to
the
city
of
bloomington,
and
so
that's
how
their
taxes
will
go
up
after
annexation.
Now,
interestingly,
it's
important
to
remember
that
the
way
you
pay
your
property
taxes
won't
change.
That'll
stay
the
same.
It's
just
how
those
funds
are
distributed
after
you
pay
them
that
will
change.
A
I
see
so
that
property
tax
bill
that
you
get
at
the
beginning
of
the
year
breaks
it
down,
and
so
on
that
line
where
it
says,
city
taxes.
If
you'd
lived
in
the
county
outside
city
limits
before
that
wouldn't
be
there
now
it
is
that's.
A
So
we're
just
talking
about
property
taxes.
B
A
That's
good
to
know
you
mentioned
earlier
when
you
were
describing
the
impact
that
certain
entities
were
tax
exempt,
which
ones
would
those
be.
B
Yeah,
so
you
think
of
things
like
churches
or
or
the
university
or
a
non-profit
organization,
certain
entities
qualify
as
tax-exempt
entities
and,
of
course,
those
entities
don't
pay
property
taxes.
Now
I'm
glad
you
brought
that
up
because
for
tax
exact
tax
exempt
entities,
annexation
actually
won't
change
their
tax
situation
at
all
right
now
they
don't
have
to
pay
property
taxes
and
after
annexation
they
won't
suddenly
start
paying
property
taxes.
That's
issue
situation
will
just
stay
the
same.
B
In
fact,
after
annexation,
tax
exempt
entities
will
actually
see
something
of
a
savings.
B
Yeah
so
folks,
who
live
outside
of
the
city,
actually
pay
slightly
more
for
a
sewer
and
they
pay
a
water
surcharge
as
well
to
the
city
utility
department.
So
after
annexation,
those
those
folks
will
see
their
sewer
and
water
bills
go
down,
so
it
will
result
in
a
savings
to
them.
B
A
That's
great,
they
always
need
to
realize
savings.
So
that's
that's
good
news.
So
one
group
that
we
hear
a
lot
from
and
about
with
regard
to
annexation
is
seniors.
A
B
B
Fortunately,
in
indiana
we
have
a
really
effective
vehicle
for
protecting
these
folks
from
property
tax
increases
and
the
fancy
legal
name
for
this
is
the
over
65
circuit,
breaker
credit.
So,
in
order
to
be
eligible
for
the
circuit
breaker
credit,
the
over
65
circuit,
breaker
credit,
you
have
to
be
over
65.
Of
course
you
have
to
live
in
a
property
that
has
a
gross
assessed
value,
so
it's
valued
at
200,
000
or
less,
and
then
you
have
to
meet
certain
income
eligibility
requirements.
B
Now,
if
you
qualify
for
the
credit,
what
that
means
is
that
year
over
year,
so
from
one
year
to
the
next,
your
property
taxes
can
never
go
up
by
more
than
two
percent
from
one
year
to
the
next.
So
if
you
paid
a
hundred
dollars
and
for
your
property
taxes
last
year
this
year,
the
most
you
could
possibly
pay
would
be
a
hundred
and
two
dollars.
A
B
And
so
we
did
go
through
and
tried
to
figure
out
what
this
would
mean
for
most
folks
in
terms
of
actual
dollars.
So
we
have
a
really
nice
fiscal
plan
that
has
this
information
in
it.
I
think
mayor
hamilton
talked
about
this.
The
fiscal
plan
a
couple
of
annexation
videos
ago,
and
you
can
find
it
on
our
website
as
well
the
bloomington.in.gov
annex
website-
and
we
figured
out
that
for
most
folks
who
qualify
for
the
over
65
circuit,
breaker
credit.
Their
taxes
will
go
up
by
seven
dollars
per
year.
B
So
seven,
that's
single
digits
less
than
ten
dollars
per
year.
So
about
you
know
right
around
50
cents
per
month
is
what
they
would
see
their
property
tax
bill
go
up
now.
B
We
also
have
to
remember
that
they
will
also
receive
those
savings
from
the
reduced
utility
rates
we
talked
about
a
second
ago,
so
we
went
through
and
computed
the
average
savings
and
the
average
savings
is
about
71
dollars
per
year
for
seniors,
who
are
eligible
for
the
credits,
so
in
fact,
annexation
will
will
result
in
those
folks
being
in
a
less
vulnerable
position
than
they
were
in
before
the
annexation.
So
it's
a
net
benefit
for
them
as
well.
That.
A
Sounds
great,
I
just
wanted
to
remind
everyone
that
we're
here
talking
about
annexation,
I'm
yael
cassandra,
the
communications
director
for
the
city
here
with
mike
rooker
city
attorney
and
we're
answering
a
few
questions
about
tax
impacts
of
annexation.
A
So
we've
talked
about
some
real
benefits
and
I,
I
hope,
have
allayed
some
fears,
but
surely
for
certain
parts
of
the
population,
taxes
will
rise,
and
maybe
we
can
talk
about
what
happens
to
families
living
in
in
traditional
owner-occupied
properties
that
become
part
of
the
city.
B
B
A
Yeah
exactly
so
most
people
have
them
have
a
mortgage,
and
so
they
you
don't
pay
your
property
taxes
all
at
once
or
twice
a
year
as
as
one
would
if
the
mortgage
were
paid
off.
Most
people
are
paying
it
12
times
a
year,
it's
divided
by
12.,
so
that
sort
of
attenuates
the
impact
somewhat.
B
A
Right
so
so
for
the
average
homeowner
we've
worked
that
out
and
we
can.
We
can
talk
about
that,
but
the
average
homeowner
in
monroe
county
in
these
areas,
the
increase,
would
be
about
50
a
month.
B
A
Wow,
so
how
about
different
kinds
of
properties?
You
know
we
have.
We
have
a
pretty
good
range
here
in
bloomington
and
monroe
county
is:
is
everyone's
property
tax
going
to
rise
at
the
same
rate
or
will
it
vary.
B
Yeah,
so
so
for
for
owner-occupied
residential
property,
your
traditional
family
home,
the
the
tax
impact
is
going
to
vary,
and
it's
mostly
going
to
vary
depending
on
the
the
value
of
your
home.
So
whatever
your
gross
assessed
value
is
according
to
the
county,
assessor,
you
know,
residents
who
are
able
to
afford
more
valuable
homes,
they're
going
to
pay
a
little
bit
more
than
residents
who
who
can't
afford
quite
as
expensive
as
a
house,
quite
as
expensive
of
a
house.
B
You
know
there
are
going
to
be
some
other
factors
that
influence
how
much
you
pay
around
the
edges
types
of
deductions.
You
know,
but
most
folks
who
are
living
in
their
home,
living
in
a
traditional
residential
home
they're,
going
to
be
eligible
for
the
homestead
deductions,
they're
going
to
be
eligible
for
the
mortgage
deduction.
So
most
of
the
time
it
looks
about,
looks
about
the
same
for
those
types
of
properties
we
did
go
through
and
look
at
some
example.
Properties.
A
B
For
example,
for
a
home,
that's
worth
right
around
a
hundred
thousand
dollars.
You
know
somebody
like
that
they're
going
to
see
the
monthly
impact
and
that
impact
of
annexation
at
about
twenty
four
dollars
per
month.
You
know,
on
the
other
hand,
someone
who
might
be
able
to
afford
a
more
valuable
property,
something
like
a
440
dollar
property
about
four
and
a
half
times
as
much
as
the
hundred
thousand
dollar
property.
B
That
person
is
going
to
see
a
monthly
impact
of
about
125
dollars
per
month,
so
it
really
is
going
to
vary
depending
on
the
value
of
the
home
property
taxes
like
a
lot
of
taxes
in
america,
they're
progressive,
and
so
those
of
us
who
are
able
to
afford
able
to
afford
more
expensive
homes
pay
a
bit
more
than
those
of
us
who
can't.
A
B
Yeah,
so
so
we
did
go
through
and
look
at
all
of
the
owner-occupied
properties
in
the
proposed
annexation
areas
and
we
did
get
an
average.
The
average
assessed
value
gross
assessed
value
of
a
property
in
the
annexation
areas.
That's
owner
occupied
is
about
176
thousand
dollars,
and
so,
as
you
mentioned
earlier,
eil
the
average
net
tax
impact
for
that
a
person
living
in
a
home
like
that's
about
fifty
dollars
per
month.
A
I
see
okay,
so
anytime,
it
has
to
do
with
money.
We
all
wanna
know
when
right.
So
when
can
we
expect
these
changes
to
to
take
effect
in
the
proposed
annexation
areas.
B
Yeah,
so
not
until
2025,
so
the
annexation
would
take
effect
legally
in
2024,
but
in
indiana
we
defer
our
property
tax
payments
for
one
year,
so
you
assess
the
property
taxes
one
year,
but
you
don't
pay
until
the
next
year.
So
that
means
2025
is
the
first
year
that
annexed
residents
could
expect
to
see
an
increase
in
their
property
tax
bills
due
to
annexation.
So
hopefully
that
gives
folks
a
decent
amount
of
time
to
plan
and
prepare
for
any
annexation
that
might
take
place.
A
Okay,
we're
discussing
this
in
2021
and
this
would
take
effect
in
2025.
so
mike.
It
occurs
to
me
that,
throughout
our
conversation,
we've
discussed
the
impact
on
county
residents.
Is
this
proposed
annexation
going
to
have
any
effect
on
existing
city
residents?
People
in
the
city
limits
currently.
B
No,
no
so
folks
in
the
city
are
already
paying
taxes
to
the
city
of
bloomington.
They'll.
Just
continue
to
do
that.
Their
taxes
will
not
go
up
so
city
residents
won't
experience
any
change
from
a
tax
perspective
after
annexation.