SOME MORE DETAILS
Although the bigger points of the Statehouse property tax reform have been spelled out there are quite a few details embedded in the 600-page document. Here area few of them that may not not have made the headlines.
PTRC & Homestead Credits – There’s an additional $620 million in homestead credits to help reduce property taxes by a statewide average of 31 percent. The property tax caps (1 percent for residential, 2 percent for rental, 3 percent for commercial) will all be phased in by 2010.
Seniors – Tax bills for seniors who make less than $30,000 (individuals) or $40,000 (couples) and have an assessed valuation of less than $160,000 can’t see their tax bills increase more than 2 percent a year. Married couples can no longer claim more than one standard deduction.
Schools – Schools can have a referendum to offset property tax caps. Reserve funds are created to schools cover any shortfalls because of tax caps.
Local Option Income Taxes – Counties retain their local option income taxes which they can use to pay for property tax relief. They can also pool their LOIT funds to pursue a single project.
County & Township Assessors – Anyone running for County or Township assessor will have to have attained a Level III Assessor-Appraiser Certification before taking office. If they don’t, there are steps to remove them from office.
Bonds & Debt – Limits local governments ability to perpetuate bond debt. Reduces the life of Tax Increment Finance Districts from 30 to 25 years and revenues from the TIF can only be used for improvements within or physically connected to the TIF.
And just so you know, more than a third of the 600-page bill deals with the state assuming the child welfare levy.
Lawmakers will vote on the property tax reform plan today.
