Skip to main content
House Bill 1338


House Bill 1338

ARCHIVE (2008)

Latest Information

 

DIGEST OF INTRODUCED BILL


Property tax elimination. Beginning January 1, 2009: (1) replaces the state funded homestead credit and the state funded property tax replacement credit with: (A) a property tax replacement credit equal to 100% of the property tax liability imposed on real property other than real property directly or indirectly owned by a corporation or public utility; and (B) a property tax replacement credit for the property tax imposed on corporations and public utilities in an amount that, in the aggregate, is equal to the amount available for property tax relief from the gaming revenue deposited in the property tax reduction trust fund; (2) increases the renter's deduction from adjusted gross income tax; (3) reduces the state adjusted gross income tax to 1.7%; (4) reduces county adjusted income tax, county option income tax, and county economic development income tax rates to eliminate the part of the tax devoted to providing property tax replacement credits and homestead credits; (5) requires a capital project to be reviewed by the county board of tax and capital projects review and submitted to a referendum when the capital project will increase debt by at least $400 per capita; and (6) prohibits the total of property taxes and income taxes imposed in a county after December 31, 2008, to increase by more than the rate of growth in county income without approval of the voters in a referendum. Transfers duties concerning the review and approval of local taxing unit budgets, tax levies, and tax rates to the county board of tax and capital projects review. Beginning January 1, 2012, exempts real property that is not directly or indirectly owned by a corporation or public utility from property taxation. Requires the imposition of a local income tax to
Current Status:
 In Committee - first House
>Latest Printing > (PDF)