State Property Tax Reform

Great news from State Senator Mike Bishop…

…Senate Republicans were able to pass a homeowner stimulus package for the ailing industry, providing immediate relief. The Senate plan nullifies the “pop-up tax” (where a home’s taxable value increases to its market value when the home is sold) by allowing a homeowner to claim their “pop-up tax” liability against their state income tax liability. For example, a family of four with an income of $70,000 would normally see a state income tax liability of $2,100. With the new legislation, after subtracting their “pop-up tax” credit and their homestead tax credits, their overall tax liability would be virtually eliminated ($2,100 income tax less homestead and pop-up). Also included in the legislation is an increase in the homestead property tax credit from $1,200 to $1,300, an increase in income thresholds by $10,000 – allowing more individuals and families to qualify for the credit and extends principal residence exemptions to unsold homes…