Just as the blind squirrel finds a nut, the General Assembly is poised to pass minor property tax relief. From an Indy Star report:
Legislative negotiators sealed a deal this afternoon on a property tax relief plan that will give homeowners $227 million worth of tax breaks this year and next.
The final version of House Bill 1001, which will be voted on today, provides $100 million in property tax credit for homeowners in 2006. On average, homeowners will pay 4 percent less this year than they would have without this break.
In 2007, the property tax break would become a deduction, which will mean the standard deduction off Hoosiers' assessed valuation will increase from $35,000 per home to $45,000 per home.
Let's not get crazy with full celebration mode yet. The final vote hasn't happened yet, and if new municipal taxes are attached to it, this is just a shift in how you pay. After all, if there are $227 million in tax cuts without commensurate cuts in spending, one of two things must happen- new tax burdens created elsewhere, or deficit spending.
Now- let's see the final tally on Major Moves!