Homeowners who pay property taxes in ‘08 could still deduct them from state income taxes

Tuesday, December 18, 2007

By Patrick Guinane

INDIANAPOLIS | A region legislator is working to ease one of the headaches caused by this year’s ultra-tardy property tax bills.

State Sen. Ed Charbonneau, R-Valparaiso, said Monday he will author legislation allowing homeowners affected by the late bills to deduct property taxes from their next state income tax return.

Property taxes typically must be paid before year’s end to be claimed on spring income tax returns. But an overhaul of the state’s assessment system has dramatically delayed this year’s bills, which typically are due in May and November installments.

LaPorte and Porter counties mailed tax bills earlier this month, with payment due by Jan. 11. And Lake County bills, which must be paid by Jan. 31, were scheduled to be sent out this week. Charbonneau’s proposal would extend the state income tax break to anyone who pays their property tax bill by the deadline set by their county.

“Taxpayers are not responsible for property tax billing delays and should not be penalized on their state income taxes because of those delays,” Charbonneau said in a statement. “The legislation I’m authoring would allow individuals living in counties that are sending out late property tax bills the option to have property taxes paid in 2008 to be considered as having been paid in 2007.”

The proposal, which needs to win approval next year from the Indiana House, Senate and Gov. Mitch Daniels, would not fix a similar snafu involving federal income taxes.

County officials have been encouraging homeowners to pay their property taxes early so they can deduct them from state and federal income taxes. If they don’t, they will have to wait until 2009 to claim the taxes on their federal returns.

http://nwitimes.com/articles/2007/12/18/news/lake_county/
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