“In this world, nothing is certain but death and taxes.”

 - Thomas Jefferson

 

Quite frankly, death might have been less painful than the tax fiasco central Indiana counties have endured in the past several months.

 

Released, rescinded, reassessed and recalculated property taxes have filled the headlines and conversations around the water cooler since the 06-payable-07 tax bills arrived in area homeowners' mailboxes (later than normal) last fall. 

 

Millions of newspapers have been sold, no doubt, but the barrage of negativity around local real estate came at a time when Indy's housing industry needed a shot in the arm much more than the kick in the head it got. 

 

Escalated taxes were instrumental in the slow down of home sales across the area, packing a triple punch of unexpectedly large tax bills, increased mortgage escrow payments and paralysis to would-be buyers.

 

But help has finally arrived!  On March 18th, state legislatures signed a bill that will provide nearly immediate property tax relief for ALL homeowners in Indiana.

 

Click here for a Q&A on the 2008 Tax Relief Bill

 

This is a big positive for your personal cash flow, whether you pay your property taxes directly or your escrow throughout the year in your monthly payment.  But this is HUGE for the housing market; particularly in areas that got socked the hardest by the reassessment process (such as Hendricks & Boone Counties).  This WILL reduce those 07-payable-08 bills as early as the next billing period (spring/summer 2008).  And it will phase in further reductions that will bring greater relief and protect us from further shock and financial upheaval for at least a couple years.

 

Sure, there is a trade off, and that involves a 1% sales tax increase, but when you realize that you personally would have to spend $100,000 annually on consumer goods to offset $1000 of your property tax bill, it sure seems like property owners are getting the better deal this time.

 

As always, I am happy to talk with you about how these things impact YOUR real estate needs when you have a desire or need.