As we enter the new year, residents across various states are witnessing significant changes in property taxes, tax credits and tax cuts. From increased rent/property tax rebates to alterations in homestead exemptions and adjustments these updates reflect the evolving landscape of state fiscal policies. Some noteworthy developments have been in Pennsylvania, Texas, Wisconsin, Colorado, Maine, Connecticut, and Massachusetts.
Pennsylvania’s Boost in Rent/Property Tax Rebate:
Pennsylvania residents have reason to celebrate as the rent/property tax rebate sees a substantial increase from $650 in 2023 to $1,000 in 2024. Managed by the Pennsylvania Department of Revenue, this initiative has served as a cornerstone of assistance, disbursing over $8 billion in property tax and rent relief over the past five decades. To qualify, residents must have rented a dwelling in the state and fulfill specific criteria.
Texas Homestead Exemption and Tax Bill:
In the Lone Star State, the property tax debate that lingered for over a year culminated in a significant change – an increase in the homestead exemption from $40,000 to $100,000. This adjustment is attributed to a Texas property tax bill approved by voters in November, featuring substantial tax cuts and additional safeguards to protect older adults from being priced out of their homes, as highlighted by Governor Greg Abbott’s office.
Wisconsin’s Abolishment of Personal Property Tax:
Governor Tony Evers made headlines by signing legislation to abolish Wisconsin’s personal property tax last summer. This move aims to streamline the state’s tax structure and alleviate the burden on residents.
Colorado’s Property Tax System Modifications:
Effective from 2024, the state has modified its property tax system, including a reduction in property tax assessment rates. These adjustments signify a proactive approach toward ensuring a fair and balanced taxation system.
Maine’s Refundable Dependent Exemption Tax Credit:
Starting January 1, 2024, Maine has made its $300 dependent exemption tax credit refundable. Furthermore, this credit will be subject to adjustments for inflation, providing additional relief for taxpayers.
Stay informed, as more states may follow suit in the ongoing evolution of tax policies.