Indianapolis, IN – August. 4, 2008 – (RealEstateRama) — Homeowners in Morgan County will soon see the first effects of the governor’s property tax relief plan when tax bills are mailed later this week. On average, homeowners in Morgan County will see a 64-percent cut in their 2008 property tax bills, according to information released by the State Office of Management and Budget.
“The Governor promised lower property taxes, and this is step one of fulfilling that commitment,” said Ryan Kitchell, state director of the Office of Management and Budget and a member of the governor’s cabinet. “The plan is off to a great start.”
The reduced bills are the result of historic legislation Gov. Daniels led earlier this year in the 2008 General Assembly. That legislation created permanent property tax relief throughout the state, starting with $620 million in additional homestead credits to be applied this year. That money is used to lower homeowners’ share of local government and school expenses and, therefore, reduce their property tax bills.
“Significant, permanent property tax reform for Hoosiers was our chief goal during the 2008 legislative session,” Senator Richard Bray said (R-Martinsville). “Morgan County homeowners will see an average cut of 64 percent in their property taxes due to the reform package we passed this year.”
Beginning in 2009, homeowner property tax bills will be capped at 1.5 percent of the home’s assessed value, and capped at 1 percent in 2010. Rental property, agricultural land and business property will also enjoy permanent protection as their tax caps start next year.
“This is important relief for Morgan County taxpayers, as they will be able to save even more of their hard-earned dollars,” said Rep. Ralph M. Foley (R-Martinsville). “I was glad to be a part of the process that brought this relief, and look forward to continuing the process of permanent constitutional reform.”
Also, effective July 1, 2008, voters must approve major projects paid for with local property taxes before those projects can proceed. This new voter-referendum process allows taxpayers to have a direct say in how their tax dollars are spent.
The state is funding the property tax reform primarily with a one-cent increase in the sales tax. When the caps are fully implemented, the property tax plan delivers $1.72 in tax cuts for each $1 of new sales tax.
Morgan County officials anticipate mailing bills this week for the first 2008 property tax installment. The statements will reflect a simple comparison of the 2007 and 2008 bills, and will list those expenses the homeowner’s taxes pay for, such as schools and public safety.
Contact: Stephanie Russo
(317) 232-5617 – office
srusso (at) sba.in (dot) gov – email