You're going to hear this from me a number of times between now and year-end. If you purchased or are purchasing a new primary residence in Indiana this year, you need to go to the County Auditor's office (after closing) and file for or confirm your Homestead Tax exemption. You may also be eligible for other tax credits as well. You have until December 31st to do this. Don't wait!
We get a few calls every year when (if?) tax bills come out, about tax bills that do not contain the Homestead credit. The difference in tax bills with and without is startling. Given Indiana's politicizing of the whole real estate tax process and the shoot from the hip approach to reform, next year the difference only stands to be greater.
You may have closed after July 1, 2008 and applied for the credit on the new sales disclosure form. This is only an application and does not guaranty that you will receive the credit. Follow up with the County Auditor and make certain that the credit is reflected in the Auditor's records. Only you can do this. Not the title company, not your Realtor®, and not your lender.
The County Auditor has no authority to retroactively apply a credit unless you can prove you applied and are entitled. Do it now, and save your receipt. You may need it. The burden of proof is on you in these situations.
Now back to our regularly scheduled programming.
Thanks for the post John...I was under the impression it was automatic after 7/1/08 so glad I caught your post. I will alert my clients.
Cindy, most of the time the County Auditor gets it right and everything turns out the way it should. I've just seen enough instances down here to cause me to advise people to make sure its done correctly. Its much easier to correct a mistake now, than after the tax rate, assessment and tax bills are done. Doubley so this year because using the sales disclosure to apply for the credit, has never been tried before. Also, not all of our buyers are using the sales disclosure to apply for the credit because they don't want the credit removed from their current property until they sell it.
Just trying to explain all this to everyone you come to realize how convoluted the whole system is, don't you?
No matter what the changes John,,,, we send out reminders and then follow up by calls as this is a wonderful opportunity to ask for referrals:)
Excellent points to your post though!
Sincerely,
Grace
Grace - Many of the top agents here in Bloomington follow the same practice. What a great way to stay in touch and provide some extra value to your relationship!
Great article. One thing I'd like to contibute is *SAVE* That receipt forever. Staple it to your HUD-1.
My wife and I recently got swindled out of our homestead for (pay) 2009 because they claim we never filed ( even though we've received the exception since 2006 and have not sold the house ). They claim we were riding on the old owners exemption ( for 3 years? unlikely ).
Well, we can't find the receipt. Shame on us. Our record is even listed in the new Indiana Dept. of Local Govt. Finance Homestead search tool:
http://www.stats.indiana.edu/dlgf_HomesteadLU/
And yet I am now having to plead to the state for this because the county refuses to listen.
So, hopefully this cautionary tale will help you save a client. Save that receipt!