Dear All,

I know that there are still a lot of questions as well as confusion over what the Homestead Credit is and is not.  (The Homestead Credit IS NOT your $45,000 Homestead Deduction.  These are TWO separate items.)  Below is information along with a link that tells more about not only the Homestead Credit, but what this can mean to all of Marion County.

While I know this is too late for people to attend the meeting in Perry Township this evening (and if you do get this and can make it this evening that is great).  I am hopeful that we will be having a meeting of this type on the northwest or west side of Indianapolis that will be one in which it will be advertised well in advance and that our area will be able to attend to learn more.  In the meantime, please read over  the information below and click on the link to learn more and understand this better.


Janice McHenry
City-County Councillor District 6

——– Original Message ——–

Subject: Mayor Ballard’s Early Education and Crime Initiative and Town Hall Meeting
Date: Mon, 18 Aug 2014 16:42:00 -0400
From: Ryan Clem <>
To: Janice Mchenry ( ) <>

To view an online version of this email, click here.

In response to several questions I have received, I wanted to share some additional information regarding Mayor Ballard’s Early Education and Public Safety Initiative:

Local Homestead Credit vs. State-Controlled Homestead Deduction

Mayor Ballard proposed a bold, comprehensive plan aimed at making Indy a safer place to live and work. His plan addresses many of the challenges the City faces related to crime, including scholarships for early childhood education, a study of the impact of expulsions and dropouts later in school, sustainable funding to hire more IMPD officers, recovering illegally possessed guns, stiffer sentencing for gun criminals, better re-entry programs, changing Indy’s curfew laws, and much more.

Mayor Ballard’s proposed $25M pre-school scholarship program will be funded by the elimination of the local homestead credit. It is important to note this IS NOT the state-controlled homestead deduction. So what is the difference between the two?

What is the local homestead credit?

The local homestead credit is a subsidy that was created before the passage of the property tax caps to control property tax bills for all homeowners in the county. Every Marion County taxpayer, regardless of whether or not they own a home, supports the credit through their income tax. Prior to property tax caps, the credit was used as a way to stabilize property tax bills and prevent them from skyrocketing due to frequent, unpredictable swings in their home’s assessed value.

Now that state law provides this protection in the form of a 1% property tax cap for residential homes, the local homestead credit has become outdated. More than 80 Indiana counties and the State have already eliminated their local homestead credit. It’s time for Marion County to do the same.

How will the elimination impact Indy homeowners?

  • There will be no impact on the 46% of Indy homeowners who are already at the 1% property tax cap.
  • The average impact for Indy homeowners not at the 1% cap is $22 per year, or $1.84 per month.
  • This does not affect the $45,000 homestead deduction set by the State
What is the State-controlled homestead deduction?

The State-controlled homestead deduction is used to reduce individual homeowners’ State property tax liability. The deduction lowers a home’s assessed value by 60% or $45,000, whichever is less, for property tax purposes.
  • This is set by the State and will not be impacted by Mayor Ballard’s proposal.
For additional information regarding Mayor Ballard’s plan, including other Frequently Asked Questions, please click here.

Please join Mayor Greg Ballard, Public Safety Director Troy Riggs, and Deputy Mayor for Education Jason Kloth for a discussion on Mayor Ballard’s Early Education and Public Safety Initiative
Wednesday, August 20th
Southport Presbyterian Church
7525 McFarland Blvd.

As Director of Community Outreach, I oversee the Mayor’s Office of Neighborhood Services and our nine neighborhood liaisons.  If you ever have any questions or concerns, please don’t hesitate to reach out to your  Mayor’s Neighborhood Liaison or to me directly.



Ryan T. Clem
Director of Community Outreach
Office of Mayor Greg Ballard – City of Indianapolis P: 317.327.4411 F: 317.327.5424

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