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Homestead Exemption

Hello All...

My neighbor and I were talking and he asked me about his son's property tax bill on a house in Hammond, Indiana. I did a little research and found out that his son didn't file for his homestead exemption with the County Auditor's Office.

Now I know most of us take advantage of this huge exemption but let me share with you how much difference it makes. First of all the exemption is 35,000 of assessed value. In a typical area that's at least $700 a year in savings.

In Lake County, there was special legislation enacted for high tax rate areas. If you have the homestead exemption, you also get a homestead credit which in this case another $550 bucks.

Long story short, my neighbors son paid $2100 bucks in tax this year and he should have paid $780. Realtors, remind your new homeowners that they have to appear in person at the Auditors office and FILE THE HOMESTEAD EXEMPTION!

Posted by Bob Kumpfer on 12/13/2006 09:41 PM

Comments (4)

tax, homestead, exemption

4 Comments on Homestead Exemption

DEC

2006

You''d think they'd just automate the homestead exemption filing. A lot of states do...

A world record for blog commenting!

http://www.ThompsonsRealty.com
http://www.PhoenixRealEstateGuy.com

How would the state know, in the proposed "automatic exemption" idea, which property was exempt if a person owned multiple properties?

Bob,

We have a homestead law here in Nevada, it doesn't help with taxes but does protect your equity from judgements and others attachments. It's all benfits with no down side. Everyone who can should file a homestead!

Bill

William J Archambault Jr

The Real Estate Investment Institute

http://www.reii.org

When you file for the homestead in Indiana, you have to appear in person and produce documentation (driver's license) that shows that the residence your filing for is your primary residence. The information, according to the Auditor is communicated to the State and kept track of to insure that an individual does not receive more than one.

I'm sure the State could coordinate with the Department of Motor Vehicles to come up with an automated system, much like the motor voter system, but that would cost goverment jobs and save the taxpayers money!

The thing I think should be changed is whereas my neighbors son did qualify for the exemption and can prove that fact, Indiana law specifically prohibits the county auditor from allowing the exemption once the filing deadline has past. An exemption by law is "a privilege, not a right". I think this is wrong and should be changed. It's not like the state sends a first-time homeowner a note saying "hey Joe Taxpayer...your entitled to receive this benefit!"

Thanks for the comments folks!

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