The Erosion of the Homestead Tax Credit
The Homestead Tax Credit delivers property tax relief to low-income owners and renters. For years, the formula for calculating the Homestead Credit was the only major part of the tax code that was not indexed to account for the effects of inflation. As a result, the real value of the credit and the total amount of the credits has dropped. The 2009-11 biennial budget addressed the issue of inflation by requiring that the state index the factors figuring into calculating the credit. The Governor’s 2011-13 budget proposes repealing the indexing requirement, which would save $3.1 million in fiscal year 2012 and $10.5 million in 2013. Read full publication.