FOR IMMEDIATE RELEASE
Charbonneau: Taxpayers could
claim two income tax deductions
(STATEHOUSE) – Sen. Ed Charbonneau (R-Valparaiso) feels taxpayers should not lose state income tax deductions as a result of property tax billing delays. Therefore, he authored legislation that would allow taxpayers paying property taxes in 2008 to claim two deductions on their 2008 state income taxes. Senate Bill 267 passed 12-0 out of the committee on Appropriations today.
“Taxpayers are not responsible for property tax billing delays and should not be penalized on their state income taxes because of those delays,” Charbonneau said. “The legislation I authored would allow individuals living in counties that are sending out late property tax bills the option to claim two $2,500 income tax deductions for property taxes paid in 2008.”
Through legislation, Charbonneau wants to protect taxpayers in LaPorte and Porter counties where the deadline to pay property taxes is Jan. 11, in Jasper and Lake counties where the deadline to pay is Jan. 31, and Clark County where the deadline is Feb. 15. These bills are all due in 2008. Brown County anticipates sending out property tax bills around May of this year.
“This is an unusual year. Some people will undoubtedly be paying their property taxes in 2008,” Charbonneau said.
Normally, taxpayers can claim one $2,500 deduction when filing state income taxes. Without Charbonneau’s legislation, taxpayers paying property taxes in 2008 would apply the one deduction when filing state income taxes in 2009. Income taxes are filed annually prior to April 15 and are paid one year in arrears, meaning the taxes paid in the current year represent the taxes owed for the previous year.
Property taxes in Indiana are also paid one year in arrears. Normally, property taxes in Indiana are due annually in two installments – May 10 and Nov. 10. Due to delays including state ordered reassessments, billing deadlines were extended.
LaPorte County Assessor Carol McDaniel agrees that billing delays are not the fault of the taxpayer and therefore they should not lose deductions on their income taxes.
“I support Sen. Charbonneau’s proposal,” McDaniel said.
“The delays are not the fault of taxpayers and legislators are trying remedy the situation,” Charbonneau said.
SB 267, Charbonneau’s first bill presented to the Committee on Appropriations, will be heard by the full Senate.
Sen. Charbonneau represents Senate District 5, which includes Starke County and portions of Porter, LaPorte, Marshall, Jasper, Pulaski, and St. Joseph counties.
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