Tiger Realty's Real Estate News

Full Article -- indystar.com/

The Senate Tax and Fiscal Policy Committee voted 9-0 to send Gov. Mitch Daniels' property tax relief plan to the full Senate with some significant changes according to the Star's Mary Beth Schneider. The most significant change takes away a lot of the tax relief the underlying bill afforded taxpayers. That provision authorizes counties to increase the local option income tax 0.5% to make up for lost property tax revenues caused by the capping of property taxes. Marion County just increased its local option income tax by 65% last year from 1% to 1.65% without providing any property tax relief. Marion County couldn't afford to raise its income tax any higher because it is already the highest in the state. That will only encourage more people to move to the suburban counties.

The good news for Marion County is that the Senate-passed plan calls for the state to pick up more local costs, including the cost of school debt service, juvenile incarceration, school pension debts and the pre-1977 police and fire pensions. The pick up of the police and fire pensions alone will save Marion County taxpayers abour $30 million a year. That would free up that much money from last year's local option income tax which was earmarked for the pension liability.

Another change the Senate made will really take the teeth out of a provision of the House plan which allowed county councils to control spending by other units of local government. County councils will only have authority to review and not approve all budgets for local taxing districts as the House version required.

The property tax relief promised by HB 1001 is very good news, but the end product is beginning to look more and more like a tax shift as opposed to real, overall tax relief. That should make the schools and local governments which have been lobbbying lawmakers hard these last few months at our expense happy, but I'm not so sure taxpayers will be all that pleased with the final product.

Online Calculator now available to determine your property tax rebate for Hamilton County.

http://www.co.hamilton.in.us/apps/rebates/rptrebate2.asp

The Noblesville Ledger Reports today February 21, 2008

*Property tax rebates will be sent out soon*

Noblesville, Fishers, and Carmel -- Hamilton County taxpayers can expect to receive their Real Estate property tax rebate checks in the mail in about two weeks. A total of 67,556 rebate checks will be issued between $4 and $1,100 with an average of $125 for Noblesville, Fishers, Carmel and Hamilton County.

The state sent $14.9 million in homestead credit rebate checks to Hamilton County as part of a relief plan approved by the legislature last year to offset increases in property tax bills.
All taxpayers who qualified and applied for a homestead deduction will receive a check.

January 25, 2008: Article Posted by indystar.com

Governor Daniels tax reform bill passed through the Indiana Senate with an infavor vote of 93-1. The senate now has until February 27th to read through the 935 page bill and respond to it. All legislation is to be completed by March 14th for the Governor's final signature or veto.

What's in it for you?

If you're a homeowner

• Your taxes would be capped at 1 percent of your home's assessed value beginning in 2009.
• You'll get a standard $45,000 homestead deduction and could lop off as much as 35 percent more in assessed value.

If you're a homeowner older than 65

• If your home is assessed at less than $200,000 and you make less than $35,000 per year:
• Your future property tax bill would be frozen until you sell your home.

For renters

• Your landlord's property-tax bill would be assessed at 2 percent of assessed value.
• You could receive a maximum renter's deduction on your state income tax form of $5,000.

For businesses

• Your tax bill would be capped at 3 percent of assessed value.

What's next
House Bill 1001 now moves on to the Senate, which has until Feb. 27 to act on the legislation. After that deadline, the House and Senate would iron out their differences on the bill in conference committee.

The House and Senate would then have until March 14, the last day of the legislative session, to pass a final bill. The legislation then would be eligible for the governor to sign into law or veto.

For more information visit MyManMitch.com