St. Joseph County residents aged 55 and older will get new tax relief next year. This new property tax credit from St. Joseph County, Indiana, has been approved to offer relief to seniors from skyrocketing property tax bills. The new credit caps the increase in the property tax bill at no more than 2% for eligible residents.
No income limit
Council member Amy Drake introduced the tax credit a few months ago to help seniors with limited income. Now, the St. Joseph County Council voted 9-0 to approve the property tax credit for homeowners aged 55 and older.
“This tax relief is needed now more than ever especially as households struggle to catch up with inflation,” Drake said in a press release.
Along with approving the tax credit, the council also stripped the income limit, allowing even more residents to qualify for the property tax credit from St. Joseph.
Initially, the proposed income limit for individual homeowners was $75,000 or less ($150,000 or less for a married couple). Council member Mark Catanzarite, however, came up with an amendment later to remove the income limit to allow everyone to access the credit.
Only one council member, Randall Figg, voted against the amendment, arguing that the lost revenue would hurt several tax entities. With no income limit, the credit is estimated to result in a loss of $3.6 million across all 46 taxing units, including over a $375,000 loss by the county.
On the other hand, with an income limit, the loss to the county could be about $315,000. County Auditor John Murphy believes the losses won’t be an issue with the county, but it may be an issue for smaller taxing entities, such as the city of Mishawaka and libraries.
Property tax credit from St. Joseph: who will get it?
Starting next year, St. Joseph County residents will be able to apply for the property tax relief credit, i.e., they won’t have to pay more than a 2% increase in property taxes. For example, if a resident’s last year’s bill was $2,000; the maximum it could rise is $40.
The property tax credit from St. Joseph would affect residents’ bills in 2025, and it will last for three years, i.e., it will end in 2027. However, the council could decide to end it earlier.
It must be noted that the credit won’t be available automatically. Residents will have to apply for it. St. Joseph County residents will be able to apply for the credit by visiting the County auditor’s website on Jan. 1, 2024. Only one credit can be claimed per household.
To qualify for the credit, residents (55 years old or older on or before December 31) must be receiving a homestead deduction for the same property in the same calendar year. A resident can’t receive this new credit and the state’s Over 65 Circuit Breaker Credit together.
Also, the residents must have lived in the home for 10 years to get the credit. The credit doesn’t apply to the portion of the house used for trade or business.
Visit the St. Joseph County website to get more information on the new property tax credit.
