Indy's 2015 Proposed Budget Confusion: Homestead Tax Credit vs. Homestead Tax Deduction

Indianapolis Mayor Greg Ballard's one-billion dollar proposed 2015 budget, has a proposal to eliminate the local homestead tax credit. Homeowners be aware that this is not the homestead tax deduction, which has much more of a monetary benefit for homeowners. 

 The homestead tax credit benefits those who have not reached the tax cap. The homestead tax deduction is a deduction for a homeowner’s primary place of residence, a home and up to 1 acre of land. The deduction is either 60% of the assessed valuation or $45,000 - whichever is less. 

 For those affected by the elimination of the tax credit, on average would pay $1.84 more per month - or $22 per year. 

 This elimination of the tax credit will help fund a portion of the mayor's anti-crime plan, which calls for hiring 280 new police officers by 2018. The plan also calls for a $25 million investment in preschool education  and to convince state lawmakers to increase jail sentences for crimes using a gun. 

 Sources:

Thomas, D. (2014, August 18). City-County Council discusses anti-crime plan . Retrieved August 20, 2014.

Van Wyk, R. (2014, July 30). Mayor Ballard calls for new preschool program; local homestead credit elimination . Retrieved August 20, 2014.

The Official Website of the City of Indianapolis and Marion County. (n.d.). Retrieved August 20, 2014.

News - Indiana Public Media | Indianapolis To Consider Elimination Of Home Tax Credit. (n.d.). Retrieved August 20, 2014.