Laserfiche WebLink
in Romestea <br />'%—..dhat is Changing? <br />The 2011 Legislature repealed the Homestead Market Value Credit, (the homestead credit), and replaced it with a <br />new Homestead Market Value Exclusion. The last year of the credit is for property taxes paid in 2011 and the <br />exclusion begins for property taxes payable in 2012. <br />� aill seuctiori inthe4amount$dft. as . oR s reu in'the <br />r..= <br />taxes due: amount 0�propertyvalue subject to tax. <br />Computation of Credit and Exclusion Amounts <br />Even though the tax benefits of the credit and exclusion are not equal, the calculation of the exclusion amount is <br />similar to the calculation of the former credit. <br />Exclusion 40 % of the first $76,000, minus <br />9% of the value over $76,000 <br />Example: House valued at $150,000 <br />Credit = (0.4% x $76,000) - ($74,000 x 0.09 %) <br />_ $304.00 - $66.60 <br />_ $237.40 <br />Exclusion = (40% x $76,000) - ($74,000 x 9 %) <br />= $30,400 - $6,660 <br />= $23,740 <br />Why the State Change? <br />Credit /Exclusion Comparison <br />Home <br />2011 <br />�F a ' 4_ <br />X01 <br />. <br />Homestead <br />F- Romestead <br />Market��: <br />Market Value <br />Market naTue <br />Value <br />CreditExclus <br />"ion' <br />$76,000 <br />$304.00304Q0 <br />. <br />$150,000 <br />$237.40 <br />23,7 0 <br />$250,000 <br />$147.4014,7j0� <br />$300,000 <br />$102.4010,240; <br />$350,000 <br />$57.40; <br />$5,70 R" <br />$400,000 <br />$12.40 <br />�£ <br />$450,000 <br />$0 <br />The elimination of the market value homestead credit was included in the 2011 budget bills passed in the <br />legislative special session in July of 2011. By eliminating the credit, the state was able to save roughly $260 million <br />each year. This was one cost saving measure the state used to close the $5 billion two -year state budget deficit. <br />Under the old credit law, the state was reducing the taxes paid by homesteaded property and instead the state was <br />promising to pay that portion of the tax to the local taxing districts (i.e., your city, county, school, and other local <br />taxing districts). However, in seven of the last eight years, the state did not pay the full credit amount to at least <br />ome local governments, due to its budget problems. This meant each year many local governments were left with <br />`etdeficit in their budgets because of the state's inability to pay the amount it owed. <br />Page 1 of 2 <br />