No fooling – April 1 brings a change for the better
March 31, 2008
April 1 this year will mark a new direction for Indiana. New legislation will go into effect that is a first step on a new journey to bringing fair taxation to the Indiana property tax issue.
On March 19, Gov. Daniels signed House Enrolled Act 1001 into law, capping Hoosier property taxes at 1 percent of a homeowner’s assessed property value, and capping rental and business property values at 2 and 3 percent, respectively.
HEA 1001 calls for a number of changes, including a shift in the state’s sales tax rate (from 6 percent to 7 percent) to offset the property-tax caps so local communities can still maintain necessary services and programs.
This new rate affects those of us who buy things as well as those who collect the tax. Here’s what you should expect to happen within the next few days:
- Beginning April 1, 2008, consumers will pay and retailers will collect Indiana sales tax at a rate of 7 percent.
- There are no changes regarding what is subject to sales tax; for example, sales tax still won’t be charged on most groceries, prescriptions or services.
- Letters will be sent to Hoosier businesses and tax practitioners. Included will be information about when to expect revised sales-tax vouchers, changes to the collection allowance, and details for utility companies and gasoline and special-fuel retailers.
Retailers, tax professionals and anyone interested in learning more about upcoming changes should visit http://www.in.gov/dor/3885.htm.
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- Know when I will receive my tax refund.
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- Take the renter's deduction.
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- Claim a gambling loss on my Indiana return.
- Have more time to file my taxes and I think I will owe the Department.
Welcome to Tax Talk, hosted by DiB (dye-bee), the Indiana Department of Revenue’s individual income tax guru. DiB, who says she’s been with the Department “since the earth cooled” (though it’s actually 30+ years), writes and develops Indiana’s individual income-tax instruction booklets and forms. DiB created Tax Talk to address Indiana individual income tax questions and issues during the filing season. If you would like to submit a question or topic suggestions, please send those to DiB at feedback@dor.in.gov
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