Henry County Council votes to raise property tax levy and to study re-opening youth detention center

In the past three years, the state average for AV growth was 10 percent. Henry County saw an AV growth of 15 percent.

Henry County’s overall assessed value (AV) – that is, the property value of all homes, business and agricultural land within the county – increased from from about $1.5 billion in 2022 to about $2.3 billion in 2025.

Assessed values are directly tied market values. New investors began buying and selling local properties during the COVID-19 pandemic, driving prices up. Assessed property values have now caught up and those changes are reflected on property tax bills.

“Our values in Henry County have skyrocketed,” Council President Chad Malicoat told The Courier-Times. “I think we were undervalued.”

During the Oct. 16 special meeting, Malicoat estimated the average home in Henry County is about $86,000. County officials did not have that data during the meeting.

New homes being built throughout the county are selling between $180,000 and $300,000.

Increased max levy

With new changes to Indiana’s tax laws, this is the last year a county can request a new maximum levy.

Malicoat said the county council members discussed appealing the levy during their 2026 budget session over the summer but did not take any action at that time.

They called the Oct. 16 special meeting after learning the new max levy could bring in an additional $1,293,475 of property tax revenue each year, starting in 2026.

Council member Kenon Gray wanted to know what effect this would have on the average Henry County property tax payer.

“Rough estimate from my calculations is about $4 per $100,000 of AV,” Council member Shannon Thom said.

“You’re looking at, let’s say $4 or less, would be the average impact to the household in Henry County,” Malicoat agreed.

“I think that’s minuscule, from my past experience,” Gray said.

Malicoat noted that a new maximum levy increase will be permanent.

“The money won’t be a one-time shot in the arm,” he said. “It will remain there next year.”

New funds for roads and bridges

Indiana counties must state a specific reason when asking the state to raise their max levy.

“This would have to be something that’s outside of our budget that was submitted to [Dept. of Local Government Finance] already,” Malicoat said.

The Henry County Council plans to use these new tax dollars to fix local bridges and roads.

Henry County Engineer Joe Copeland recently created a detailed report about the state of Henry County’s bridges, including cost estimates for needed repairs and replacements.

“We’re staring down the barrel of – I don’t have that in front of me – but it was pushing $10 million over the next six years...that’s going to be required to bring our bridges back to life, if you will,” Malicoat said.

Malicoat said an additional $1.2 million a year, over the next six years, would take care of a lot of the bridge needs on Copeland’s report.

Council member Bobbi Plummer agreed that the new funds should go to local bridges. Specifically, she wants to see the bridge on County Road 400 S repaired as soon as possible.

“That bridge is estimated at $2.4 million,” Plummer said. “If we don’t do something with that bridge, that road’s going to stay closed four to six years... if we have to do it as a federal aid project.”

Malicoat said the CR 400 S bridge is included among dozens of bridges on Copeland’s list, along with many culverts “that are in dire need of repair.”

Council member Scott Koontz agreed that the condition of Henry County’s bridges and culverts was a good justification for increasing the max property tax levy.

The council voted 6-0 to appeal for the new maximum levy. Council member Jay Davis was not at the Oct. 16 meeting

The appeal request has been sent to the State Board of Accounts (SBOA) to determine if Henry County meets the requirements.

“It will probably be December, maybe January, before we hear if the appeal is approved,” County Auditor Debbie Walker said.

IF the SBOA approves the new levy, it will go into effect in 2026.

Youth center study

The county council also voted during the Oct. 16 meeting to pay for a study about the Henry County youth center.

Accounting firm Baker-Tilly offered to conduct a feasibility study of re-opening the Henry County Youth Detention Center. The study would cost $18,600.

The Henry County Commissioners had considered the study during an Oct. 11 meeting but did not agree at the time how to pay for it. The commissioners sent the request to the county council for their consideration.

“I would like to see us do that,” Gray said. “I don’t feel, personally as a council member, that we have the data.”

“I’m not opposed to opening it up. I am opposed to going forward with potentially millions of dollars with no more research than I think is needed,” Gray continued. “This could run into the millions of dollars. I would really like to see what they (Baker-Tilly) has to offer.”

“I trust them to give us sound information from which we can make educated decisions on budgeting for this project,” he added.

The council voted 6-0 to spend $18,600 from the Reclassification fund to pay for the feasibility study.