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August 19, 2014
HOMESTEAD DEDUCTION V. TAX CREDIT----SO TO CLEAR THE CONFUSION
Homestead Tax Credit vs Homestead Deduction Tonight a proposal will be introduced before the Indianapolis City-County Council that calls for the elimination of the Homestead Tax Credit, to help fund a portion of the Mayor's education and crime plan. You may hear about it on the news, and we wanted to issue this clarification since there has already been confusion. The homestead tax credit is not the same as the homestead deduction, which is the larger of the two. On average, homeowners who would be affected by the elimination of the homestead tax credit would pay another $1.84 per month. Under the new era of property tax caps the homestead tax credit is an outdated policy that only benefits those who have not reached the tax cap while all income earners contribute to it. Not all counties adopted the homestead tax credit. In Marion County about 40 percent of homeowners receive no benefit from the tax credit. The 40 percent who receive no benefit currently from the tax credit would see no impact with the elimination of the tax credit. (posted 8/18/2014)
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