The minimum base is the highest income level at which taxpayers receive the maximum amount of credit for property taxes paid. The table from which the allowable tax credits are calculated is modified. In addition, the bill authorizes an individual income tax credit for real property taxes paid on a homestead. Any amount of credit authorized under the provisions of the circuit breaker will be subtracted from this homestead credit. The homestead portion of the credit will expire on December 31, 2000.
Supporters say that property tax relief is needed for all taxpayers and especially seniors.
In addition, using the income tax for property tax relief allows local taxing jurisdictions to maintain their tax base. There was no opposition voiced to the committee. The minimum base is the highest income level at which taxpayers receive the maximum amount of credit for property taxes paid. The bill also modifies the table from which the allowable tax credits are calculated. In addition, the bill authorizes an individual income tax credit for real property taxes paid on a homestead.