Open Forums

The following notes detail a telephonic discussion regarding property tax issues and potential legislative solutions. The core of the issue stems from significant increases in property assessments, particularly for land values, leading to higher overall property taxes.

This discussion took place on 29 July, 2025 at 10:00 am. Participants included Indiana State Senator Rodney Pole Jr., Doug Moon - President MC²AG, Michael Fish - Vice Presiident MC²AG, Bill Newton - Secretary MC²AG and Frank Masley - Technical Services MC²AG. This phone discussion lasted approxamately 59 minutes. Here's a summary of the discussion:

● Property Tax Increases:

Residents of Trail Creek, Michigan City, experienced

substantial increases in their property assessments, with most individual's land value increasing by almost 64% and their total property value by nearly 14%.

● "Green Sheet" Notices:

These assessment changes were communicated via a "green sheet" titled "Notice of Assessment of Land and Structure/Improvements," issued by the elected county assessor, Michael Schultz, and Brent Banic for different sides of Trail Creek.

● Impact on Residents:

Many residents, especially retirees on fixed incomes, expressed concerns about their ability to afford to live in their homes due to the rising taxes. One disabled Army veteran noted a 475% increase in his property tax over five years, while his disability and Social Security increased by only 23.2%.

● "Unrealized Capital Gain":

The deputy assessor, Stacy Schweitzer, explained that while land and structure values can be manipulated, the "total" assessment is what matters. This increase in value, even without property improvements, was likened to an "unrealized capital gain".

● Call for Legislative Action:

Residents were advised by the assessor's office and the auditor (Mike Rosenbaum) to speak with their legislators about the issue. There's a desire to hold a larger meeting with representatives and senators, including Pat Boy. Senator Pol asked us to extend an invitation from him to Indiana State Senator Mike

Bohacek, Representative Jim Pressel and Representative Chuck Moseley to attend and to discuss solutions.

● Legislative Focus:

State legislators are working on property tax relief, specifically targeting individuals on fixed incomes, such as those over sixty-five, veterans, and disabled veterans. The current across-the-board tax relief (SB1) is not considered sufficient for these groups.

● Michigan City Real Estate Market:

Michigan City's real estate market is considered "hot," partly due to the deregulation of Air BNB's, which allows properties to be purchased at high prices for passive income, making it difficult for residents on fixed incomes to compete.

● Discrepancy in Tax Rates:

A significant concern was raised regarding higher tax rates per dollar paid by Trail Creek residents compared to those in more affluent areas like Long Beach or Michiana Shores, where multi-million dollar homes are taxed at a lower rate.

● State Budget:

The state of Indiana is currently "in the black" financially, with funds allocated to various accounts, including pension funds. However, there have been budget cuts across the board, including to social programs and legislative mailings.

● Meeting Logistics:

For a future, larger meeting, there is a need for a venue with a capacity of at least 125-150 people, and potentially a microphone, whiteboard, and projector for presentations to provide more detailed information to attendees.

The date will be 10 October, 2025 at 4:00 PM. The location will be The Salvation Army, 1201 Franklin St., Michigan City.

State Senator Rodney Pol Jr. and Representative Pat Boy

The "Open Forum Property Tax Discussion" went off as scheduled. Due to last minute Republican State Senate requirements only Senatoe Rodney Pol Jr. and Representative Pat Boy were able to attend. After we presented our Power Point Presentation to the Legislators and approxamately 50 attendees, both legislators spoke and then it was opened to audience questions. Our forum lasted a little under 2 hours and while some of the attendees didn't get the answers they wanted, we feel it was a very worthwhile effort.

After the formal meeting was concluded, we had a chance to talk to Senator Pol and Representave Boy. They said they were extremely impressed with the Power Point Presentation and the data presented was excellent and it flowed from slide to slide seamlessly. They were also impressed with our knowledge, attitude and our professionalism. Senator Pol also asked us would we be willing to do this again next summer. Our response was "yes".

Senator Pol also stated if they redo or update the Property Tax Bill in the next session he will try to attach our 2% Cap Recommendation for Seniors to the bill.

ABC 57 South Bend Coverage of our tax forum.

https://abc57.com/news/community-invites-local-lawmakers-to-public-forum-over-property-taxes

Below please find a text version of our Power Point Presentation of 10 October 2025

NCREASING PROPERTY ASSESSMENTS & TAXES

OUR NEMESIS: UNFAIR & EXCESSIVE PROPERTY TAX INCREASES
RISING PROPERTY TAXES vs. STAGNANT WAGES
* When property tax bills increase at a faster rate than household incomes, it creates a significant financial burden for many homeowners.
* The average Social Security raise, or Cost-of-Living Adjustment (COLA), for the last 10 years (2015-2024) has been approximately +2.75%.
* INFLATION RATE FOR 2015-2025 AVERAGE 3.0%

Local Property Tax Impacts (Trail Creek)
TYPICAL PROPERTY TAX IN DOLLARS 2020 – 2024 TRAIL CREEK (INCREASE +62%)
* 2020: $1,239
* 2021: $1,496
* 2022: $1,584
* 2023: $1,702
* 2024: $2,011

ONE EXAMPLE OF PROPERTY TAX IN DOLLARS 2020 – 2024 TRAIL CREEK (INCREASE +358.41%)
(Note: Veteran on total disability)
* 2020: $206.60
* 2021: $386.58
* 2022: $533.04
* 2023: $696.44
* 2024: $947.08

ILLUSTRATING A TREND: COUNTIES WITH THE HIGHEST INCREASE IN ASSESSED VALUE 2020 – 2025
* Johnson County: Experienced a substantial increase in its total gross assessed value, rising by 69.51% from 2020 to 2025.
* Ripley County: Had a statewide increase in total assessed value of 28.5%.
* Parke County: Saw a 43.0% increase in commercial improved properties' assessed value.
* LaPorte County: Saw a 26.3% increase in total assessed value.
* Howard County: Had a 54.8% increase in industrial improved properties' assessed value.
* Sullivan County: Experienced a 34.5% increase in residential improved properties' assessed value.
* LaPorte County Assessments and Tax Increases 2020 – 2025
* 2025 Certified Net Assessed Value (NAV): $7,044,180,697 (+26.3% increase from 2020).
* 2025 Total Tax Levy: $40,651,967 (+24.4% increase from 2020).
* 2025 Overall Property Tax Rate: 0.5771 (per $100 of assessed value), a -1.5% change from 2020.
* However the tax rate for Trail Creek, Coolspring Township is 2.4554 (per $100 of assessed value), significantly higher than the rest of the county.

Economic & Personal Financial Challenges

THIS IMBALANCE CAN LEAD TO A NUMBER OF ECONOMIC & PERSONAL FINANCIAL CHALLENGES:

* Reduced Homeownership Affordability.
* Increased Financial Strain.
* Higher Monthly Payments.
* Impact on the Rental Market.
* Broader Market Implications.

Trail Creek Demographic Trends
TRAIL CREEK POPULATION TREND DECLINE
* Between 2022 and 2023, the population decreased from 2,018 to 1,983, a decline of -1.73%.
* The property tax increased by +62% from 2020 to 2023, and the population of Trail Creek declined by -4.35%.
* There is a direct correlation between property tax increases and population decline.

65 AND OLDER MEDIAN INCOME DROP
* The median income for the 65 and over age group drops sharply to $47,760, representing a -48.6% decrease from the peak earning years.
* MEDIAN HOUSEHOLD INCOME BY AGE GROUP: The decrease in income at age 65 is -48.62%

Property Tax Poll Results & Recommendations
PROPERTY TAX POLL RESULTS
* For seniors 65 and older, limit Property Tax increase to 2% annually, immaterial of income or assessed value. (17) 53%
* No property taxes for seniors 65 or older. (12) 38%

OUR POSITION/RECOMMENDATIONS ON THE PROPERTY TAX ISSUE
* A cap of 2% yearly of seniors property tax increase is fair enough for all parties concerned.
* At the age of 65, the homeowner's tax cost of primary residence is frozen and that amount becomes his or her recurring annual property tax payment for all future years.