Which US states are planning to change property taxes for 2022
Each week, Mansion Global poses a tax question to real estate tax lawyers. Here is this week’s question.
Q. Are there any state property tax initiatives planned for next year?
A. Several states are considering new property tax initiatives.
Texans, for example, will vote in May on a constitutional amendment to increase the homestead exemption for school districts from $ 25,000 to $ 40,000, according to the state legislature. If voters approve the measure, it will take effect immediately, saving homeowners an average of $ 176 per year, according to State Senator Paul Bettencourt, a Republican from Houston and author of the proposal.
California also has several proposed voting initiatives targeting property taxes.
Following: What property tax benefits exist for veterans of the US military?
To begin with, there is the Taxpayer Protection and Government Accountability Act, which states that changes to any law that results in higher taxes must be passed by both houses of the Legislature by a two-thirds majority and approved by the California voters, according to the state attorney. general’s office.
Another proposal, the Tax Cut and Housing Affordability Act would add a 1% to 1.2% surtax on residential properties currently valued at $ 5 million and above to fund tax credits of up to 2,000. $ for low- and middle-income owners and renters, depending on the text of the bill. It would also increase the exemption for family properties from $ 7,000 to $ 200,000.
There is also the Affordable Housing and Fiscal Responsibility Act, which would allow local municipalities to issue bonds to raise funds for affordable housing, and the Death Tax Repeal Act, which would reverse a measure, namely Proposition 19, which was passed in November 2020. It limits the ability of owners to pass property on to their children without increasing the assessed value of the property, according to the bills.
Supporters of the measures must collect signatures from registered California voters for the initiatives to be added to the November ballot. The number of signatures required “must be equal to at least 8% of the total votes cast for governor in the last governor election,” according to the state.
Meanwhile, in New York City, some homeowners will be able to take advantage of a tax break that was approved earlier this year.
New York homeowners with incomes of up to $ 250,000 can claim a property tax relief credit on their tax returns “if their total property tax exceeds a fixed percentage of their income,” according to the State. “This framework targets New York families with the highest income property taxes. “
Claims are expected to average around $ 340, and homeowners will be able to claim the credit for the 2021, 2022, and 2023 tax years.
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