East Coast - Wednesday, July 23, 2008 13:26 - 2 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.