This Deals with Property Tax rates, caps, homestead exceptions, etc.
The link to this lengthy, but very important bill is pasted here.
Please read my comments in previous blogs. Enjoy! Did I mention that "Keeping YOU # 1 in Real Estate" is our mission, goal, and work ehtic?
http://www.in.gov/apps/lsa/session/billwatch/billinfo?year=2008&session=1&request=getBill&docno=1001
317-698-5675
Saturday, April 26, 2008
Regarding Homestead Credits:
Please read the excerpt form House Bill 1001 below.
I offer the following caveat.
When buying an income property, seller second home, or any other property that is not homesteaded, remember that a homestead application will be done automatically whenever the property closes. The Buyer's taxes due will decrease. The pro-rated taxes will have to be adjusted. Make certain that you have this adjustment in writing and make sure everyone is clear on how over-charges or over-payments are to be disbursed.
Everyone in the transaction should be clear about this. That is one of the reasons you want to work with me or other competent Brokers. We are here for you!
Call me!
317-698-5675
I offer the following caveat.
When buying an income property, seller second home, or any other property that is not homesteaded, remember that a homestead application will be done automatically whenever the property closes. The Buyer's taxes due will decrease. The pro-rated taxes will have to be adjusted. Make certain that you have this adjustment in writing and make sure everyone is clear on how over-charges or over-payments are to be disbursed.
Everyone in the transaction should be clear about this. That is one of the reasons you want to work with me or other competent Brokers. We are here for you!
Call me!
317-698-5675
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%.
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%.
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