Property Tax Freeze

[oze]

OK, I heard this mentioned in passing on the local news, but missed the details. So I looked it up, and found Indiana Senate Bill 90, Property Tax Freeze for Seniors. I read it, or tried to, and other than one needs to be at least 65 and have had a Homestead interest in the property for at least 10 years as of the calendar year this bill would take effect (2024), I got nuttin as to what it means. To me, of course.

SB90 | Indiana 2023 | Property tax freeze for seniors. | TrackBill

Indiana SB90 2023 A BILL FOR AN ACT to amend the Indiana Code concerning taxation and to make an appropriation Freezes the property tax liability on a homestead of an individual who is at least 65 years of age and has maintained a qualified interest in the homestead for at least 10 years...

trackbill.com

Can anybody translate into layman's Reader's Digest form? Tanks!

 

[tsm]

Since I’ve had an occasional decrease in both assessed value and the resulting property taxes over the last 27 years, might want to consider carefully whether to sign up for this unless the bill lets the taxes drop if they decrease naturally but keeps them from increasing when inflation or the government is pushing them higher. Wouldn’t want to freeze at a high number only to see everyone else’s taxes drop while yours stayed frozen high! I’d be happy if they’d just adhere to the state law that caps taxes at 1% and disallow any school or other “approved” bond issues that result in exceeding the cap.

 

[oze]

Since I’ve had an occasional decrease in both assessed value and the resulting property taxes over the last 27 years, might want to consider carefully whether to sign up for this unless the bill lets the taxes drop if they decrease naturally but keeps them from increasing when inflation or the government is pushing them higher. Wouldn’t want to freeze at a high number only to see everyone else’s taxes drop while yours stayed frozen high! I’d be happy if they’d just adhere to the state law that caps taxes at 1% and disallow any school or other “approved” bond issues that result in exceeding the cap.

Unfortunately, our property's assessed value has doubled since our purchase in 2012.

 

[Ingomike]

Unfortunately, our property's assessed value has doubled since our purchase in 2012.

Unfortunately the property’s value has doubled since your purchase in 2012.

Most folks like seeing their property value increase. 2012 was just a little better than the “dark ages” of 09,10, and 11. I hope your property increased in value, otherwise it was a poor choice…

 

[Ingomike]

I’d be happy if they’d just adhere to the state law that caps taxes at 1% and disallow any school or other “approved” bond issues that result in exceeding the cap.

Yes sir!

 

[indykid]

Ah the beauty of a 1% property tax fake cap. As Hamilton County has found out, all you have to do is raise the assessed value of the home and you have given yourself a property tax increase. Last year they took full advantage of the skyrocketing price of homes and raised everyone in my area by about $50,000. That equates to a $500 tax increase next tax year. Yeah that cap sure works well.

I have been writing my "representatives" every year for the last 15 about a tax abatement for seniors who do not have or have never had anyone use the schools which represent the major part of the tax. The only one who has actually contacted me about the situation was Governor Mitch Daniels of all people who actually had someone available to work at that time with my 80 year old father.

As I state in my letters, after a certain age, say 65, the home owner property tax should be no more that what is used for police, fire, and library. Not one cent for schools no longer used. Let the schools figure out how to live within their proper means like we "homeowners" must do.

I used quotes around homeowners because due to property tax we will never truly own our homes. After the mortgage has been paid off, we still pay rent to the county for the privilege of having the great American dream of home "ownership".

 

[Cavman]

Ah the beauty of a 1% property tax fake cap. As Hamilton County has found out, all you have to do is raise the assessed value of the home and you have given yourself a property tax increase. Last year they took full advantage of the skyrocketing price of homes and raised everyone in my area by about $50,000. That equates to a $500 tax increase next tax year. Yeah that cap sure works well.

I have been writing my "representatives" every year for the last 15 about a tax abatement for seniors who do not have or have never had anyone use the schools which represent the major part of the tax. The only one who has actually contacted me about the situation was Governor Mitch Daniels of all people who actually had someone available to work at that time with my 80 year old father.

As I state in my letters, after a certain age, say 65, the home owner property tax should be no more that what is used for police, fire, and library. Not one cent for schools no longer used. Let the schools figure out how to live within their proper means like we "homeowners" must do.

I used quotes around homeowners because due to property tax we will never truly own our homes. After the mortgage has been paid off, we still pay rent to the county for the privilege of having the great American dream of home "ownership".

I've written my previous rep. Jim Lucas and my new rep Randall frye about this. Absolutely 0 response. They like the money. Look at holcome. Hes wanting to spend all this money. All in name of "helping" they could help by just quit spending and let us keep more of our money. It feels like the Republicans say. We let ya have constitutional carry. Thats all the conservative value ya get from us.

 

[Ingomike]

Ah the beauty of a 1% property tax fake cap. As Hamilton County has found out, all you have to do is raise the assessed value of the home and you have given yourself a property tax increase. Last year they took full advantage of the skyrocketing price of homes and raised everyone in my area by about $50,000.

So your value remained the same or fell but they raised your assessment, making the cap “fake”?

 

[oze]

Unfortunately the property’s value has doubled since your purchase in 2012.

Most folks like seeing their property value increase. 2012 was just a little better than the “dark ages” of 09,10, and 11. I hope your property increased in value, otherwise it was a poor choice…

Unfortunately for the purpose of this discussion of assessed value and property taxes. Since I have no plans of leaving this house except feet first, increased assessed value means nothing to me. Maybe my kids are gleefully rubbing their hands together when I'm not looking.

 

[Hawkeye7br]

Doesn't the Homestead credit require a fixed income of under $20k or something similar? I looked into it and because we saved money toward an investment based retirement, we're not eligible.

Correct me if I'm wrong, please.

 

[amboy49]

I thought to be eligible for the Homestead Credit you had to have a mortgage (lien) against the property - and it must be your primary residence.

 

[Cameramonkey]

Doesn't the Homestead credit require a fixed income of under $20k or something similar? I looked into it and because we saved money toward an investment based retirement, we're not eligible.

Correct me if I'm wrong, please.

Everyone gets a homestead credit on their primary residence. At least if they have a mortgage. No fixed income limits*. My mom is a great example. She owns my boyhood home plus the land next door where her mom lived. She still works, makes more than double that, and gets the credit on HER property, but pays full price for Grandma's plot.

I get it too at over 4x that limit you think exists. Maybe thinking about something else?

I agree with the cut. If you are retired and have owned your home for a long time or have paid property taxes for a long time, there should at some point be a time where you stop paying property taxes. ESPECIALLY if property values have appreciated significantly since you purchased the home.

If you've paid property taxes for 40+ years and you are retiring, you deserve a break. Like the homestead credit. And if you sell your home and move in with your child for your end of life care, that credit shouldnt follow you.

And this shouldnt apply to newcomers to the state or those that dont have a long term history of paying property taxes. This free ride should be predicated on the elderly taxpayer having paid taxes HERE for decades. We dont need seniors coming here to retire from out of state, or locals moving from renting to owning and getting a free ride.

Seniors shouldnt pay property taxes on their homes, but only after they have paid their dues.

And I'd be vehemently against deferred taxes. I can see them deferring the taxes to be paid when the property is sold. I could see them trying to sneak in a plan that somehow offsets the taxes until the property is sold. That would result in them (or the estate) taking a 55 gallon drum sized penalty up the bum. "Sorry about your parent's passing. You now own the home. But now you owe back taxes on the property. Here is your $50,000 tax bill. What? You cant afford to pay that? I guess you can sell the house to pay us. What? There is still a mortgage and you only have $40,000 in equity? Too bad. At least now the estate' liability will only be $10k. Will that be cash or charge?" This isnt just an estate transfer thing either. Imagine your parent getting a 10 year reprieve on taxes and then they go to sell the house to pay for their nursing home care, and end up only getting half the value of the house due to the deferred taxes? (or worse)

*(still mulling this over) And maybe for the "fairness" of the intended relief we set a wealth cap? Do those living in million dollar homes with millions in assets deserve the same credits? I mean, they can afford it. Not sure about this angle... hmmmm.

 

[Ingomike]

Doesn't the Homestead credit require a fixed income of under $20k or something similar? I looked into it and because we saved money toward an investment based retirement, we're not eligible.

Correct me if I'm wrong, please.

Ok, Homestead applies to the principal residence owned by Hoosiers‘s of all income levels…

https://www.in.gov/dlgf/files/181101-FAQ-Deductions.pdf

 

[Ingomike]

I thought to be eligible for the Homestead Credit you had to have a mortgage (lien) against the property - and it must be your primary residence.

No, just principal residence. The mortgage exemption is separate and going away soon...

 

[Cameramonkey]

No, just principal residence. The mortgage exemption is separate and going away soon...

citation please?

 

[Ingomike]

citation please?

“On March 21, 2022, Governor Eric J. Holcomb signed into law House Enrolled Act 1260-2022 (“HEA 1260”). Section 12 of HEA 1260 repeals the mortgage deduction in its entirety, effective January 1, 2023.”

https://www.in.gov/dlgf/files/2022-memos/220614-Bennett-Memo-Legislative-Changes-Concerning-Credits,-Deductions-and-Exemptions.pdf

 

[oze]

Unfortunately the property’s value has doubled since your purchase in 2012.

Most folks like seeing their property value increase. 2012 was just a little better than the “dark ages” of 09,10, and 11. I hope your property increased in value, otherwise it was a poor choice…

Unfortunately for the purpose of this discussion of assessed value and property taxes. Since I have no plans of leaving this house except feet first, increased assessed value means nothing to me. Maybe me kids are gleefully rubbing their hands together when I'm not looking.

 

[DoggyDaddy]

Unfortunately for the purpose of this discussion of assessed value and property taxes. Since I have no plans of leaving this house except feet first, increased assessed value means nothing to me. Maybe my kids are gleefully rubbing their hands together when I'm not looking.

Unfortunately for the purpose of this discussion of assessed value and property taxes. Since I have no plans of leaving this house except feet first, increased assessed value means nothing to me. Maybe me kids are gleefully rubbing their hands together when I'm not looking.

Deja' vu...

 

[oze]

“On March 21, 2022, Governor Eric J. Holcomb signed into law House Enrolled Act 1260-2022 (“HEA 1260”). Section 12 of HEA 1260 repeals the mortgage deduction in its entirety, effective January 1, 2023.”

https://www.in.gov/dlgf/files/2022-memos/220614-Bennett-Memo-Legislative-Changes-Concerning-Credits,-Deductions-and-Exemptions.pdf

We all still can apply for the mortgage exemption for taxes payable in 2023, but no longer after that. Also, the Homestead deduction amount is increasing so that will hopefully offset the loss of the mortgage exemption.

Indiana Mortgage Deduction to End January 1, 2023 - Metropolitan Title

Beginning January 1, 2023, Indiana home and property owners will no longer be able to claim the mortgage deduction on their annual property taxes.

metropolitantitle.com

The timing could not be better for me, since our mortgage will be paid off this Fall.

 

[DragonGunner]

Just told today the 65 age deal is only good if your land and property assessments are less than $140k. 2 years ago mine was $109k then last year $125k and this year $138k. In 3 years I can apply but by then it will be well over $140k so no way as a senior I’ll ever see it and that’s the name of the game with scumbags in charge.