The school capital projects fund has a maximum rate that varies by school corporation. Once the levy is set by local governments, after application of the control rules, and once local assessors have calculated assessed value, property tax rates can be set. Rates are re-calculated each year by dividing the levy by assessed value. The rate is multiplied by the assessed value owned by each taxpayer to calculate the taxpayer's liability. The rate the taxpayer pays is the sum of the rates of the local government in which he or she lives.
All taxpayers pay a county rate, a township rate and a school corporation rate.
Most taxpayers live in a city or town and a library district, and so pay those rates too. There are also rates for other special districts, such as solid waste management districts, transportation districts or fire protection districts. Taxpayers receive one combined tax bill from the County Treasurer, and make one payment for all the local units. The county divides the revenue among the local units. The credits are funded by the state sales tax and other state revenues, and were created in 1973 in order to reduce local government reliance on property taxes.