Homestead Deduction and Applications

A Homestead Application will automatically be done at the closing of a property! Hurray! The following is an excerpt from House Bill 1001:
Provides an additional supplemental standard deduction for homesteads. Provides additional homestead credits in 2008 of $620,000,000. Provides that in a county that adopted a local option income tax (LOIT) in 2007, the county auditor, with the approval of the county fiscal body may petition the DLGF to permit a portion of the additional 2008 homestead credit to be used instead to increase the additional state funded homestead credit provided for 2009 or in both 2009 and 2010. Provides $140,000,000 in homestead credits in 2009 and $80,000,000 in homestead credits in 2010. Provides that a school corporation may not impose a special education preschool property tax levy after December 31, 2008. Requires the department of education to make distributions equal to the product of $2,750 multiplied by the number of special education preschool children who are students in the school corporation. Increases the maximum amount of the state income tax deduction for renters from $2,500 to $3,000. Provides that an individual who owns a homestead with a gross assessed value of less than $160,000 and who has adjusted gross income of $30,000 (in the case of a single return) or $40,000 (in the case of a joint return) is entitled to a property tax credit to the extent that property taxes on the individual's homestead increase by more than 2% from the prior year. Repeals the expiration date for the state earned income tax credit. Provides that the maximum amount of the standard deduction is the lesser of $45,000 or 60% of assessed value for 2009 and thereafter. Requires the DLGF to adopt rules or guidelines concerning the application for the standard deduction. Increases the sales and use tax rates from 6% to 7%.