East Coast - Wednesday, July 23, 2008 13:26 - 0 Comments
Big Property Tax Cut for Henry County Homeowners
Big Property Tax Cut for Henry County Homeowners
INDIANAPOLIS, IN - Homeowners in Henry County have begun to see the first effects of the governor’s property tax relief plan after tax bills were mailed last week. On average, homeowners in Henry County will see a 38-percent cut in their 2008 property tax bills, according to information released by the State Office of Management and Budget.
“The Governor promised lower property taxes, and this is step one of fulfilling that commitment,” said Ryan Kitchell, state director of the Office of Management and Budget and a member of the governor’s cabinet. “The plan is off to a great start.”
The reduced bills are the result of historic legislation Gov. Daniels led earlier this year in the 2008 General Assembly. That legislation created permanent property tax relief throughout the state, starting with $620 million in additional homestead credits to be applied this year. That money is used to lower homeowners’ share of local government and school expenses and, therefore, reduce their property tax bills.
“The relief homeowners will see on their property tax bills is proof that the landmark property tax legislation has had a positive impact on Hoosiers homeowners,” Sen. Beverly Gard (R-Greenfield) said. “During this difficult time in the economy this may encourage others to locate to Henry County and our new law may result in Indiana having among the lowest 10 property tax rates in the country.”
Beginning in 2009, homeowner property tax bills will be capped at 1.5 percent of the home’s assessed value, and capped at 1 percent in 2010. Rental property, agricultural land and business property will also enjoy permanent protection as their tax caps start next year.
Also, effective July 1, 2008, voters must approve major projects paid for with local property taxes before those projects can proceed. This new voter-referendum process allows taxpayers to have a direct say in how their tax dollars are spent.
The state is funding the property tax reform primarily with a one-cent increase in the sales tax. When the caps are fully implemented, the property tax plan delivers $1.72 in tax cuts for each $1 of new sales tax.
The Henry County auditor’s office anticipates mailing bills this week for the first 2008 property tax installment. The statements will reflect a simple comparison of the 2007 and 2008 bills, and will list those expenses the homeowner’s taxes pay for, such as schools and public safety.
Other Recent Articles
- Orlando property tax rate heading up posted by Mark Schlueb on Jul 21, 2008 3:14:18 PM
- Dyer’s Proposed Property Tax Increase Approved
- Aircraft owners should pay fair share of taxes
- Property tax revenue drop hitting many cities hard
- Reducing Property Taxes
West Coast - Jul 23, 2008 13:14 - 0 Comments
Dyer’s Proposed Property Tax Increase Approved
ORLANDO – Orlando Mayor Buddy Dyer unveiled a budget plan Monday that he said would keep the city going, but would increase property taxes.
The City Commission voted 6-1 to approve the proposal, which will increase the millage rate from 4.9307 to 5.6500, as a way to make up for a $30 million defecit, partly caused by Amendment One.
No one wants to see a tax increase, but a majority of the Orlando commissioners said they had no choice.
“Unfortunantely, we’re dealing with a national economy situation that we’re not responsible for, but what’s happenned is federal funding has been cut, state funding has been cut. And where does that finally come to roost? Down at the local government,” said District 4 Commissioner Patty Sheehan.
There is some good news. Even with the millage rate going up, 70 percent of all Orlando homeowners will still see a reduction in their city property tax bills.
To find out if you are in that category, take the assessed value of your home before the homestead exemption of $50,000. If it is less than $178,000, your property taxes will actually go down.
Those in the more pricier homes will have to carry the burden now of the tax increase.
“I am not going to support this tax increase,” said District 1 Commissioner Phil Diamond.
Before he agrees with approving any tax increase, Diamond said it was time for the city to take a fundamental look at how they do business.
Diamond said there are other ways to make up for the budget deficit.
“The Downtown Redevelopment Agency,” Diamond suggested. “What is that? That’s all the taxes that get collected Downtown. Do they get used for fire and police services? No, they’re exempt from that. That’s about $24 million this year.”
The rest of the Commission, however, said they have no choice but to raise taxes to try to stay afloat.
A number of services will also be cut to make up for the budget deficit.
The Commission plans to eliminate all holiday bonuses for city employees, which should save the city about $300,000.
Training and travel budget for all city employees will be cut by 15 percent.
Some community and and recreation centers with low usage on Saturdays could be closed for that day.
The Commission also plans to reduce the Fire Department’s public outreach budget by half, meaning health checks for seniors, health fairs and smoke detector checks will all be cut to help trim the budget.
There is also a plan to take about $2 million from the city’s reserves.
More In West Coast
- Property tax revenue drop hitting many cities hard
- Reducing Property Taxes
- Seeking Lower Taxes as Your House Value Falls
- Utah Republicans and Prop 13
- PROPERTY TAXES: Complaint filed against Gibbons
Recent Comments