Rising property taxes around the Village could be a potential outcome of the new Cardinal Village development for the surrounding area.
Matthew Wright, leasing agent for C&M Property Management, said the rise should not be a concern for property owners.
“If you really project out what your business looks like in residential property management, taxes aren’t your biggest enemy, anyway,” he said. “Taxes are something that are always going to be there.”
C&M manages 107 residential units around Muncie, Wright said.
Still, the rises also could mean a shift in rental prices for the area, said Dagney Faulk, director of research at the Ball State Center for Business and Economic Research.
“Whatever property taxes the property owner has to pay, the rental value has to be high enough to cover that,” she said.
The Village area is designated as a tax increment financing district, meaning the increase in revenue that the county receives from the property taxes will be set aside to pay for the bond that was used to pay for the city-funded Cardinal Square parking garage.
Property tax caps were implemented in 2008, limiting the amount of property taxes that can be placed on landowners.
For rental property, the cap was set at 2 percent of the assessed value and 1 percent for residential property.
According to a study done in May by the Center for Business and Economic Research, Delaware County was the second-most impacted in 2012 since the implementation of the tax cap and lost 36.09 percent of property tax revenue that it would have made without the cap.
As a landowner, Wright said the increase in property tax is not worrying him.
“In my opinion, the general tax level is so high that property taxes are such a miniscule amount of that,” he said.
But, the economic effects of the development are not yet clear, Wright said.
“There’s no direct implications that I can say yet,” he said.
