Local News
Decatur’s homestead exemption plan includes income restriction
With interest in annexation waning, Decatur will focus attention during the 2016 state Legislature to passing homestead exemption legislation to mostly create tax relief for seniors.
The city’s exemptions are in three parts:
- Increase in the General Homestead Exemption for all residential owner-occupied properties from $20,000 to $25,000 off half the assessed value of a home.
- Increase the General Homestead Exemption for homeowners 65 years or older from $1000 to $10,000
- Create a General Homestead Exemption for homeowners 62 and over whose household income does not exceed $50,000 in the amount of $15,000.
The annual tax bill reduction for a $400,000 house, for instance, would range from about $60 for a resident homeowner who does not qualify for additional age or income considerations, to $340 for a resident homeowner who meets all age and income qualifications.
Unlike City Schools Decatur’s proposed homestead exemption there is no sunset provision.
Last year’s proposed homestead exemption bill didn’t pass the House. This year it must pass the Senate first then the House to get authorized as a referendum.
