Hobart’s senior citizens are in line for $500 property tax relief.
On Wednesday, the Hobart City Council passed an ordinance providing a tax credit that can be renewed annually. Homeowners who apply for the program must be 65 years of age or older and have a homestead exemption on their dwelling.
Applications for the program will be accepted at the Hobart Clerk Treasurer’s office from October 1-31.
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The program is being funded through the city’s Community Impact Fund, which is derived from proceeds from the Amazon Web Services data center development.
Hobart Mayor Josh Huddlestun said the fund has approximately $100 million and more money is on the way to support additional community-focused programs. He indicated that the property tax relief program could one day include to all Hobart homeowners.
“I don’t know what the future holds, but obviously there’s the possibility it can be extended,” he said.
For now, Huddlestun was pleased that the city could do something to help its seniors.
“Some homeowners are struggling and we want to make sure that we’re doing our part to provide as much relief as possible and continue to reduce costs for our residents,” he said. “This is an opportunity for our seniors, some of whom are on a fixed income, to help them keep their home.”
Local governments in Indiana are bracing for the financial impact of Indiana Senate Enrolled Act 1, which offers up to $300 in property tax relief but triggers more than $1.4 billion in cuts to school districts, libraries and local governments over the next three years. Huddlestun said Hobart doesn’t have the same concerns as the Amazon could allow the city to offset any reduction in revenues as a result of the state’s property tax reduction measure.
Hobart initially received $47 million from Amazon, with $10 million more arriving in September, according to Huddleston. Another $45 million will be in-hand by the end of 2026, with a $43 million payment to come in 2027. The city is in line to receive approximately $40 million in both 2028 and 2029 and approximately $52 million in 2030 when the 723-acre project is expected to be completed.
The payments from Amazon effectively double the city’s general fund budget year over year, as Hobart will receive approximately $52 million per year over the next 35 years starting in 2020. Huddlestun explained that the city opted for direct payments from Amazon, thus granting the company a 35-year tax abatement on personal property (equipment on site) and a 10-year abatement on real property (buildings) associated with the data center at 61st Avenue and Colorado Street.
He noted that funding from Amazon has allowed the city to eliminate its trash pickup fee recently, saving residents about $22 per month.
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Jim Masters is a freelance reporter for the Post-Tribune.