A homeowner in Indianapolis has a property with a gross assessed value of $320,000. The property is the owner's primary residence and qualifies as a homestead under Indiana law. Under Indiana's Circuit Breaker (Property Tax Cap), what is the maximum amount of property tax the owner can be required to pay in a single year?
Correct Answer
A) $3,200
Under Indiana's Circuit Breaker, codified as a constitutional amendment in Article 10, Section 1 of the Indiana Constitution and implemented through IC 6-1.1-20.6, property taxes on a homestead (owner-occupied primary residence) are capped at 1% of the property's gross assessed value. Calculation: $320,000 × 1% = $3,200. This is the maximum tax liability regardless of the local tax rate.
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