President Bush will sign measure as part of housing bill;
up to one million Hoosier homeowners eligible for new deduction
Washington, DC – August 4, 2008 – (RealEstateRama) — Congress tomorrow morning is expected to send to President Bush for his signature federal property tax relief legislation authored by Senator Evan Bayh and Congressman Baron Hill. Saturday’s expected final passage is the culmination of a yearlong push by Bayh and Hill to provide help to Hoosier homeowners affected by Indiana’s recent reassessment.
“These are tough economic times for many Hoosier families coping with declining home values, rising property taxes, and astronomical prices at the pump,” Senator Bayh said. “The reassessment has imposed genuine financial hardships on many of my constituents. While property taxes are primarily a state and local issue, I wanted to do my part to get some relief back to Indiana homeowners. Even though Washington is broken, here is a case where we fought through the gridlock, rose above election year-politics, and got Democrats and Republicans to work together to help ease the strain on family budgets in the midst of the housing crisis.”
“This is an example of the legislative process really working for the people we represent,” Hill said. “I have heard from so many folks in Southern Indiana about the burden they are shouldering due to high property taxes. And, although this is primarily a state legislature issue, I wanted to find some way relief could be provided at the federal level. Through persistence and sheer determination it really looks like our property tax provision is going to be signed into law in the not-so-distant future.”
On Wednesday, the House of Representatives passed the American Housing Rescue and Foreclosure Prevention Act, which includes the Bayh-Hill property tax provision. That same day, President Bush dropped a veto threat on the bill. The Senate is expected to pass the legislation tomorrow morning. The White House bill signing will likely take place next week.
The Bayh-Hill legislation creates a new standard deduction for homeowners who do not itemize their deductions on their federal income tax filings. Under current law, taxpayers who itemize their deductions may take advantage of deductions that other taxpayers cannot. Non-itemizers will be able deduct up to $500 of their property tax bills from their federal taxes this year, and families will be able to deduct up to $1,000. A typical non-itemizing Hoosier family that makes between $65,100 and $131,450 will see up to $250 in relief this year.
An estimated one million Hoosier homeowners, and 30 million Americans nationwide, will be eligible for relief for the 2008 tax year.
Katie Moreau PHONE (202) 225-5315