Expert: Ind. farms could see big property tax jump

AP News
Posted: Dec 02, 2009 10:49 AM

A Purdue University farm expert says Indiana's farmers could see a big increase in property taxes over the next few years if state lawmakers don't retool the state's farmland taxation formulas.

Purdue farm economist Larry DeBoer says Indiana assesses farmland based on its use value rather than its market value. He says the problem is that commodity prices are factored in the state's formula when the base rate per acre is determined.

Because commodity prices were high in 2007-2008, that's helped boost those base rates.

DeBoer says that between 2007 and 2012, the farmland base rate per acre will have nearly doubled to $1,600. But he says lawmakers have numerous approaches they could take in the coming session to offer farmers relief.