For immediate release – Governor’s State Office of Management & Budget
Contact: Stephanie Russo
(317) 232-5617 - office
srusso@sba.in.gov - email 

Big Property Tax Cut for Lawrence County Homeowners

Indianapolis (July 14, 2008) – Homeowners in Lawrence County will soon see the first effects of the governor’s property tax relief plan when they receive their 2008 property-tax bills later this week. The average Lawrence County property-tax bill will be 21-percent less than last year, according to information released by the State Office of Management and Budget. 

“The Governor promised lower property taxes, and his plan is delivering on that commitment,” said Ryan Kitchell, state director of the Office of Management and Budget and a member of the governor’s cabinet. “These cuts are just the first step, but it’s a great start.”

The reduced bills are the result of historic legislation Gov. Daniels led earlier this year in the 2008 General Assembly. That legislation created permanent property tax relief throughout the state, starting with $620 million in additional homestead credits to be applied this year.

This money is being used to lower homeowners’ share of local government and school expenses and, therefore, reduce their property tax bills.

“Just as important as the immediate property tax relief are the spending controls, property tax caps and permanent elimination of levies that will protect taxpayers in the future,” said Rep. Eric Koch (R-Bedford), who represents Lawrence County in the General Assembly.

Beginning in 2009, homeowner property tax bills will be capped at 1.5 percent of the home’s assessed value, and capped at 1 percent in 2010.  Rental property, agricultural land and business property will also enjoy permanent protection as their tax caps start next year.

The state is funding the property tax reform primarily with a one-cent increase in the sales tax. When the caps are fully implemented, the property tax plan delivers $1.72 in tax cuts for each $1 of new sales tax.

“Our main goal this past session was significant, permanent property tax relief for Hoosiers,” said State Senator Brent Steele (R-Bedford). “As a result, our reform package has delivered a 21-percent average decrease for Lawrence County homeowners. With local referendum controls now available, future increases should be held to a minimum and some totally avoided.”

The Lawrence County auditor’s office reports that it will begin mailing the first 2008 property tax installment the week of July 14. The statements will reflect a simple comparison of the 2007 and 2008 bills, and will list those expenses the homeowner’s taxes pay for, such as schools and public safety.