Marshall County Auditor Angie Birchmeier is reminding taxpayers effective for the 2023 payable 2024 property tax cycle, the Mortgage Deduction will no longer apply.

Governor Eric J. Holcomb signed into law House Enrolled Act 1260-2022 that repeals the mortgage deduction effective January 1, 2023.  Indiana bills a year in arrears, so this will mean that during the 2023 payable 2024 property tax cycle the mortgage deduction will not be applicable. 

In place of the mortgage deduction, the General Assembly has increased the homestead deduction by $3,000.  The homestead deduction amount for 2023 payable 2024 will be the lesser of the following:

(1)   Sixty percent (60%) of the assessed value of the real property, mobile home not assessed as real property or manufactured home not assessed as real property; or

(2)   $48,000

Indiana Code 6-1.1-12-37.5 explains the supplemental homestead deduction, which will remain the same.

In Indiana, each county takes an annual snapshot of their county as of January 1 of every year for the next year’s tax cycle.  Due to billing a year in arrears, if the property transfers to another party, the deductions may still be applicable until the next assessment takes place.

The application for the homestead deduction must be completed by December 31st before the year the taxpayer wishes to claim the deduction.  The deduction paperwork must be filed with the Auditor’s office.  

The Marshall County Building is open to the public from 8:00 am to 4:00 pm Monday through Friday. 

Birchmeier said, “Residents are welcome to call us at 574-935-8555 with any questions or concerns.”