Property Taxes7 min read

Orange County: Paoli, French Lick Resort Properties, and the 2026 Cycle

Orange County, home of French Lick Resort and county seat Paoli, runs a 2026 assessment cycle with a unique resort-tourism overlay on a low-rate base. Here's what owners need to know.

By AribaTax Team

Orange County in southern Indiana is anchored by Paoli (county seat) and French Lick — a small county whose tax base is shaped by the French Lick Resort and Casino, the Pete Dye Course, and the broader hospitality economy that's grown around them. Outside the resort footprint, Orange is rural, residential, and agricultural. The county's median effective tax rate around 0.84% sits among the lower end of the statewide distribution, and the resort component provides a stabilizing AV anchor that smaller all-residential rural counties don't have.

For Orange owners, the 2026 cycle brings the statewide changes — SB 1 $300 homestead credit, supplemental deduction step-up from 35% to 40%, and the DLGF cost-table reset that drove statewide AVs up roughly 12% in 2025. The resort overlay layers on top with implications for both the tax base and the surrounding residential market.

The 2026 Orange County Budget Order was issued December 31, 2025. That sets the certified rates for the spring tax bill arriving in April. The Form 11 Notices of Assessment for the next year arrive separately on April 28.

How a Resort Anchors a Small County's Tax Base

French Lick Resort — the historic French Lick Springs Hotel, the West Baden Springs Hotel, the Pete Dye Course, and the casino — is by orders of magnitude the largest tax contributor in Orange County. Three structural effects:

Stabilized Levy Distribution

A large commercial AV anchor reduces the rate burden on residential parcels. In a county where the resort produces a significant share of total commercial AV, residential effective rates run lower than they would in a county of similar population without that anchor.

Tourism-Driven Surrounding Demand

Hospitality activity around French Lick supports demand for short-term rental properties, second homes, and the supplier and service businesses that serve resort guests. That demand keeps Paoli and West Baden-area residential AVs supported even when the broader rural southern Indiana market softens.

Concentrated Sensitivity

The flip side of a single dominant tax contributor is concentrated sensitivity. Major changes to resort operations or assessment ripple through the county's rate calibration faster than they would in a more diversified tax base.

The 2026 Statewide Changes in Orange

SB 1 $300 Homestead Credit

For a Paoli homestead paying ~$1,300 annually, the SB 1 credit is roughly $130 — the 10% bill reduction.

Supplemental Deduction Step-Up

35% to 40% of post-standard-deduction AV. Applied automatically to homesteads on file.

DLGF Cost-Table Reset

Orange residential parcels tracked the state at roughly 12% AV growth for 2025-pay-2026. Resort-adjacent commercial parcels saw varied effects depending on existing improvements and class.

Paoli Homestead Math

For a typical Paoli homestead with a $150,000 AV at Orange County's typical rate range:

StepCalculationAmount
Gross AV$150,000
Less standard deduction$48,000$102,000
Less supplemental (40%)40% × $102,000$40,800
Net AV$61,200
Tax rate (illustrative)~$21 / $1,000
Gross tax$61,200 × 0.021$1,285
1% cap test1% × $150,000$1,500 (cap not binding)
Pre-creditmin(gross, cap)$1,285
SB 1 credit10% × $1,285, max $300$129
Final annual tax$1,285 − $129$1,156

This is illustrative — actual Orange rates vary by taxing district. The pattern: Paoli homesteads typically sit below the cap, so the SB 1 credit applies at the percentage rate, not at the $300 maximum.

Short-Term Rentals in the French Lick Footprint

The growth of short-term rental activity around French Lick presents specific assessment considerations for owners. Three items to understand:

Class Code

A house used as a primary residence falls in the homestead class with the 1% cap. A house used purely as a short-term rental is class 510 territory (single-family rental) or 511 — losing the 1% cap and the SB 1 credit.

Mixed Use

A house used as both a primary residence and a part-time short-term rental falls into murkier territory. Indiana's homestead rules require the property to be the owner's principal residence. Renting out a room or the entire property for portions of the year while still maintaining principal residence status is permissible — but the documentation matters at audit.

Income Approach

Short-term rentals with operating history are eligible for income-approach valuation in an appeal. For a successful operating short-term rental, the income approach typically produces a value above the cost approach — meaning the income approach is rarely the right tool for an STR appeal. For an underperforming STR, the income approach can support a reduction.

Form 11 Items for Orange Owners

The 2026 Form 11 mails statewide on April 28. Orange-specific items to verify, on top of the statewide Form 11 walkthrough:

ItemWhy it matters in Orange
Year-over-year AV changeAnything over 12–15% on a stable parcel deserves a closer look
Property class codeShort-term rental properties frequently get drift-coded between residential and rental classes
Resort proximity premiumNeighborhood codes near French Lick reflect resort-driven demand
School corporationOrange includes Paoli, Orleans, and Springs Valley districts
FloodplainLost River and tributaries cross the county

The West Baden and Springs Valley Components

Within Orange County, the towns of French Lick and West Baden Springs sit close to the resort footprint. Springs Valley Community Schools serves both communities. AV pressure here typically runs above the county average due to resort-driven residential demand.

For owners in the immediate French Lick or West Baden footprint, the 2026 Form 11 may show:

  • Stronger AV growth than Paoli (resort-proximity effect)
  • Higher land valuations relative to improvements (resort-adjacent land premium)
  • Specific neighborhood codes reflecting the resort impact

Filing an Appeal in Orange

Orange County's PTABOA caseload is small — appeals here typically resolve in 3–6 months. The process, covered in the Indiana property tax appeal guide:

  • File Form 130 with the Orange County Assessor's Office in Paoli
  • Include 3–5 comparable sales from your specific neighborhood code
  • For short-term rentals: rent roll, operating statement, and income documentation
  • For resort-adjacent parcels: comparable sales from the same proximity tier
  • Filed by June 15, 2026 or 45 days from the Form 11 mailing date

Orange At a Glance

MetricOrange County
Population (est.)~19,000
Total parcels~14,000
County seatPaoli
Major economic anchorFrench Lick Resort and Casino
School corporationsPaoli Community, Orleans Community, Springs Valley
Median effective tax rate~0.84%
Spring 2026 bill dueMay 11, 2026
Form 11 mailsApril 28, 2026
Appeal deadlineJune 15, 2026 (or 45 days from Form 11)

What to Do This Spring

For Paoli-area homestead owners: open the Form 11 the day it arrives, verify the five line items, and file Form 130 by June 15 if the AV looks unreasonable.

For French Lick or West Baden owners: expect AV pressure above the county average; verify the neighborhood code reflects the actual proximity to the resort.

For short-term rental operators: verify the class code reflects current use; a rental misclassified as homestead carries audit risk and a homestead misclassified as rental loses the 1% cap and SB 1 credit.

Property Lookup pulls Orange parcel data including resort-proximity neighborhood codes, and Tax Appeal Automation builds the Form 130 + evidence package on contingency.

Find Your Orange County Property

Related Articles