New Tax Cap Impact

The cost to local government of the new "circuit breaker" tax reform is impossible to determine for certain. It requires data that has not yet been collected. For example, there are different caps on homestead, other residential and non-residential properties, but assessors do not presently track properties by those categories.

However, the Legislative Services Agency made estimates for each local unit, including yours. These were used by Representatives and Senators when they voted on the bill (House Bill 1001) which passed and was signed by the Governor.

Here are the estimates:

http://www.in.gov/legislative/pdf/HEA1001_CIRCUITBREAKER_20080317.PDF

Additional information on the effects of House Bill 1001 and property tax reform is available at the following site:

http://www.agecon.purdue.edu/crd/localgov/Topics/Essays/Tax_Reform_Households_0408.htm

04/10/08

If you have questions or would like further information, please contact us at: Coonrod@CoonrodCPA.com

This article is intended to provide information of general interest to local government officials in Indiana. The information is not guaranteed to be applicable or appropriate in particular circumstances. Local officials should consult competent professionals before acting on any information contained in this article. We are not attorneys. Advice of a legal nature should be sought only from qualified attorneys.

To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.