In 2007, the Indiana General Assembly passed a comprehensive tax relief plan to provide immediate relief to homeowners and options for future local growth management.
Property Tax Refunds
The General Assembly provided $300 million for property tax refund checks for Hoosier homeowners, doubling the amount provided by the state under the Homestead Credit. We have advocated that these refund checks be distributed as soon as possible to homeowners using the state’s general fund. The state could be reimbursed by dedicated revenue expected on or before November 1st of 2007.
Property Tax Relief for 2008
Lawmakers provided an additional $250 million appropriation for relief in 2008 through increased rates for the Homestead Credit and Standard Deduction, two ways that the state pays a portion of each homeowner’s property tax bill.
Local Option Income Taxes
Local units of government were offered three local income tax options under the new tax relief plan to help find the right mix of property taxes and local income taxes to fund local operations. Some counties have already adopted one or more of these options.
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