Property tax savings opportunity

FORT WAYNE, IND. (WANE) - There’s a surprising savings opportunity out there for homeowners during these difficult times. With property taxes due to be mailed out in the coming summer weeks, Indiana Senator Evan Bayh is reminding Hoosier of a savings opportunity that’s available.

“The last thing we need is higher taxes at the state or local level,” Senator Bayh said.

Senator Evan Bayh helped pass a maximum $500 income tax credit to help offset your property taxes, regardless of whether you itemize your income taxes.

"We were able to get some relief put into place two years ago, extended last year, and now is the time to make it permanent and now is the time to lift the cap so that we treat those who itemize and those who don't equally," Bayh said.

Now, he wants to make that permanent. The credit and its amount are based on property tax assessments and family income. Senator Bayh’s office estimates that nearly half-a-million Hoosiers are eligible.

"What I propose to do this year is to make the relief permanent and to remove the cap," Senator Bayh said.

Senator Bayh says that money will help homeowners during this recession.

"We're struggling like everyone else to meet our financial commitments in this economy," Allen County property owner Beulah Matczak said.

This comes as welcome news to property owners Sam and Beulah Matczak, who saved a few hundred bucks last year.

"We put it toward out bills that we have. We pay our bills and we like to be on time and we don't like to be late. We want to be on time and pay our creditors because they have to make a living too," Matsczak said.

Again, that $500 maximum credit can be claimed on your income taxes for 2009. Time will tell if the credit will be both increased and renewed for 2010's taxes and beyond.

More on the web:  Tax credit information