In Long Beach, the Property Tax Bill Changes Hands With the Owner

Every Long Beach listing shows the seller's tax bill as if it belonged to the house. In Indiana, it doesn't. The tax depends on whether the owner lives there as their principal residence. That means a buyer from Chicago can buy a cottage from a retired full-time resident and get a first bill close to double what the seller paid, with nothing about the property changed.

For this market that matters more than usual, because a large share of Long Beach buyers are buying a second home. Two other things are moving the numbers right now. Indiana's 2025 property tax reform takes effect on a set schedule, one year at a time. And on Nov. 3, Michigan City Area Schools voters decide an operating referendum that state rules place outside the usual tax caps.

The seller's bill shows how the seller used the house

Indiana defines a homestead as an owner's principal residence, the person's "true, fixed, permanent home." A homestead can include up to one acre, and each person can claim only one, filed with the county auditor. A house that isn't part of a homestead falls into a different class that state law calls "residential property." Most Long Beach second homes are in that class.

Each class has its own ceiling. Under Indiana's circuit-breaker law, a homestead's tax is capped at 1% of gross assessed value. Other residential property is capped at 2%, and nonresidential property at 3%. Homesteads also get two deductions the second-home class doesn't: a standard deduction and a percentage-based supplemental deduction. The Department of Local Government Finance points out that the caps limit what a bill can reach. They don't change the tax rate itself.

So if a listing says "taxes: $5,000," that figure describes the seller. A buyer who won't live there full time needs to work the number out again.

Long Beach's rate, and what makes it up

The state's 2026 LaPorte County budget order, dated Jan. 14, 2026, sets the Long Beach (Michigan) taxing district rate at $2.0232 per $100 of assessed value for 2026, up from $1.9823 in 2025. The rate for unincorporated Michigan Township is $1.6844. The $0.3388 difference is exactly the Town of Long Beach's own combined rate, which pays for its general fund, debt service, motor vehicle highway, park and recreation, and cumulative capital development funds.

The town's certified assessed value is $599,541,349. Next to several of the town's funds, the state wrote the same note: "Rate reduced due to increased assessed valuation." In practice, rising property values let the town collect its budget at a lower rate for those funds.

Some parcels are taxed under a second district, listed as "Long Beach (Michigan) Mich San," at $2.2875 per $100 for 2026. Before running any numbers on a specific property, check which district that parcel is in.

The same house, two first bills

Here's a simplified example using the 2026 Long Beach district rate and the pay-2026 deduction amounts. It assumes a house with a $500,000 gross assessed value and leaves out every other deduction or credit an owner might qualify for. Treat it as a way to see the mechanics, not as a quote for any real property.

The deduction amounts come from the 2026 Indiana Code. Homesteads also get a new supplemental homestead credit starting with taxes payable in 2026. It equals 10% of the homestead's tax, not counting any referendum taxes, and is capped at $300; and the county auditor applies it automatically.

At Long Beach's current rate, the homestead bill hits its 1% cap and the second-home bill stays just under its 2% cap. The second-home bill is the full calculated amount. The homestead bill is limited by the cap.

Senate Enrolled Act 1 moves the two classes in opposite directions

Senate Bill 1 became Public Law 68 when it was signed on April 15, 2025. It rewrote the deductions on a schedule that runs through 2031:

The column that matters most for second-home buyers is the last one. Starting from nothing before the reform, the deduction for 2% cap property climbs to a third of assessed value, and the county auditor applies it without an application. Purdue Extension's September 2025 explainer lists slightly different homestead percentages for the later years. The table above follows the codified statute.

Run the same $500,000 house through the pay-2027 schedule, holding the rate and value constant only to isolate the change. The second home's net assessed value drops to $440,000 and its bill to about $8,902, roughly $600 lower than the year before. The homestead's net assessed value comes to $248,400, which still calculates above $5,000, so the homestead bill stays at its cap. In the short run, the second home gets the bigger reduction. Rates and assessments will move too, so later years in the schedule show where the law is headed, not what anyone's bill will be.

The Nov. 3 referendum is outside the caps

Taxing units feel the same reform from the revenue side. Michigan City Area Schools, whose district includes Long Beach on the U.S. Census Bureau's LaPorte County school-district map, estimates that SEA 1 will reduce its local revenue by $821,200 in 2026, $849,040 in 2027 and $893,140 in 2028. That's about $2.56 million across the three years. The district is asking voters on Nov. 3 to approve an eight-year operating referendum that would raise $10 million a year at a maximum rate of about $0.2998 per $100 of assessed value.

For a Long Beach second home, the referendum works under three rules.

• It isn't limited by the caps. The DLGF states that voter-approved referendum taxes are not subject to the 1%, 2% or 3% caps, so a successful referendum can push a bill above them.
• It applies to net assessed value. State rates are stated per $100 of assessed value after deductions. In the example house, the maximum rate would come to about $814 on the homestead's $271,200 net value and about $1,409 on the second home's $470,000.
• Voting requires residency. Under the district's posted rules, voters must be U.S. citizens who live in the district and have lived in their precinct for at least 30 days. Owning a second home in Long Beach doesn't make someone eligible to vote on the levy.

The tax base helps explain why the vote matters so much here. The town's $599.5 million in certified assessed value is about 18% of the school corporation's $3.38 billion.

Published cost estimates don't agree. The district's referendum page estimates about $260 a year, or $22 a month, for a home with a $200,000 median assessed value, and notes that caps and individual circumstances change the actual impact. WSBT quoted Superintendent Wendel McCollum citing about 50 cents a month. The LaPorte County Herald-Dispatch reported officials citing the same 50-cent figure, a resident disputing it, and a former councilman putting the cost at $100 a year on a $200,000 home. The same paper reported that Michigan City Mayor Angie Nelson Deuitch and the full Common Council support the measure. WSBT reported that Americans for Prosperity Indiana opposes referendums statewide. MCAS offers an online investment calculator that includes an input for non-homestead residential property. WIMS reported that the district's final scheduled community meeting was set for Oct. 22 at Krueger Middle School.

Quick answers

If I buy a Long Beach house as a second home and later move in full time, does the bill change? The homestead deduction is tied to the owner's principal residence and is filed with the county auditor, so the property's classification depends on how the owner uses it.

Do I have to apply for the new 2% cap deduction? No. The statute directs the county auditor to apply it.

Is every Long Beach parcel taxed at $2.0232? No. The 2026 budget order also lists a "Long Beach (Michigan) Mich San" district at $2.2875.

If the referendum passes, does it raise taxes on second homes too? Yes. According to the DLGF, referendum taxes apply on top of the caps for every property class.

This is general information about how Indiana's property tax rules are written, not legal, tax or financial advice. Confirm your own parcel, classification and eligibility with the LaPorte County auditor or a qualified tax professional.

If you're weighing a Long Beach cottage and want to see how the seller's tax history compares with what you'd likely pay as a second-home owner, Jordan Gallas can walk through the parcel's district, its tax history and the questions to bring to the county before you make an offer. Let's Connect.