Maria owns a rental duplex in Indianapolis that is not her primary residence. The property has a gross assessed value of $200,000. Under Indiana's Circuit Breaker, what is the maximum annual property tax Maria can be required to pay on this property?
Correct Answer
D) $4,000
Under Indiana's Circuit Breaker (IC 6-1.1-20.6), other residential property that is not a homestead is capped at 2% of gross assessed value. Therefore, $200,000 × 2% = $4,000 is the maximum annual property tax Maria can be required to pay.
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Key Terms:
Related Concepts
Homestead portability allows homeowners to transfer a portion of their accumulated homestead tax savings to a new homestead in the same state.
The income approach estimates a property's value based on the income it generates by converting net operating income into a value estimate using a capitalization rate. It is the preferred method for income-producing properties.
Many states have laws to limit how much property taxes can increase each year, regardless of market value fluctuations.
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