I am very excited about what it seems to be postive changes that are starting to be taking place with the passing of House Bill 1001 Property tax relief by the Indiana Legislation. I think we are all still learning more and more about the effects of the bill but I wanted to post about the postive changes that should start to be seen by current and prospective property owners.
Here is a summary of the major points of the changes that will be taking place the way I understand them as of now:
- Effective April 1st, 2008 Indiana Sales tax was raised from 6% to 7%.
- Effective for the 2008/2009 Tax Year Taxes will be capped at 1.5% for Residential, 2.5% for Investment and 3.5% for Commercial and Farm Ground 3.5% of assessed values.
- Effective for the 2009/2010 and thereafter tax years, taxes will be capped at 1% for Residential, 2% for Investment and 3% for Commercial and Farm Ground of assessed values.
- Starting this year Exemptions will be allowed to be placed on the property for the next year anytime between January 1st - December 31st instead of the old way of having to own before March 1st to be eligible for the following year.
- The HOMESTEAD EXEMPTION will be AUTOMATICALLY placed on your primary residence upon purchase by the filing of the SALES DISCLOSURE. According to our local auditors office here in Delaware county they are going to encourage the new disclosure to be used now and be required after July 29th. If you are interested the new form can be downloaded at: http://www.in.gov/icpr/webfile/formsdiv/46021.pdf
- I am not 100% positive yet but it looks like ONLY the HOMESTEAD EXEMPTION will be automatically filed from the sales disclosure. You will still be responsible for going to the auditors office to file any other exemptions you may be eligable for such as the Mortgage, Over 65, Veteren, Blind/Disabled ones.
As a real estate professional, I am very excited about these changes because hopefully it will help the investors to get excited about buying again and give potential homeowners the ability to know how much their taxes will cost and dramatically improve the time to get exemptions filed on their properies in certain situations.
I Hope this post will help make a little more sense out of the changes taking place.
As always, I would recommend contacting the county Auditors office to verify all information or if your real brave read it at: http://www.in.gov/legislative/bills/2008/HB/HB1001.1.html!
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The ORR Home Selling Team
Eagle Real Estate, Inc.