For immediate release:
March 13, 2008
Rep. Ron Herrell's model home deduction bill signed into law by Gov. Daniels
INDIANAPOLIS —— House Enrolled Act (HEA) 1164, legislation authored by State Rep. Ron Herrell (D-Kokomo) that provides a property tax deduction for owners of model homes was signed into law by Gov. Mitch Daniels.
This statute applies specifically to model homes that are used for display or demonstration purposes only.
"Owners of model homes are not garnering any sort of profit or reaping any benefit from there homes since they are not being sold, lived in or rented out," Herrell said. "It is therefore unfair that model home owners should be burdened by property taxes on these properties."
Under this new law, model homes would only be responsible for 50 percent of property taxes for the first three years that the home is fully assessed, unless the home is sold or rented before that time.
Herrell said in light of the property tax crisis the General Assembly is dealing with right now, any progress that can be made to help alleviate financial stress on Hoosiers is important and necessary.
"Not only will this benefit homebuilders, it will also promote reinvestment into the homebuilding industry to create new jobs and growth in related construction fields," he said.
HEA 1164 passed through both chambers with overwhelming support.
"I'd like to thank the governor for his support on this issue, as well as my colleagues in both the House and the Senate," Herrell said.
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