Wednesday, July 31, 2013

State Balances Budget but...



Local Home Owner's Budgets Take a Hit 

Tax-law changes to squeeze seniors

Not only will all home owners have to pay an additional 12.5% on any new property-tax levies that local local governments and school districts will be forced to ask for. Forced to do so because the legislature has reduced the amount of state funding for those entities.

Turning sixty five is not always a pleasure but at least you could look forward to the $300 property tax credit for senior home owners. Not so fast seniors! Stating next year people turning 65 and earning over $30,00 year will not be eligible to enroll in the homestead exemption program.

More Information

Existing Homestead Exemption

The Homestead Exemption is a program that provides a reduction in property taxes to any senior or disabled citizen, regardless of income, on the dwelling that is that individual's principal place of residence and up to one acre of land of which an eligible individual is an owner. The reduction is equal to the taxes that would otherwise be charged on up to $25,000 of the market value of an eligible taxpayer's homestead.

The state will continue to pay the bill on the first $25,000 in home market value for those already in the program, but all new senior citizen and disabled homeowners entering the program will have to prove they earn less than $30,000 a year.

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