|
FOR IMMEDIATE RELEASE
September 26, 2008
|
|
|
Contact: Zach Goldberg
202-225-5801 (office) |
|
HOUSE VOTES TO EXTEND HOLT’S PROPERTY
TAX RELIEF INITIATIVE FOR ANOTHER YEAR
Millions of American Homeowners Who Do Not Itemize on Federal Taxes
Would Be Able To Take Additional Standard Deduction in 2009 as Well
|
|
|
(Washington, D.C.) – The U.S. House of Representatives today passed legislation that would extend to 2009 a property tax relief initiative that Rep. Rush Holt (NJ-12) proposed and that President Bush signed into law in August. The Holt property tax deduction currently applies to 2008 and will benefit homeowners who do not itemize on their Federal tax returns. Under the law, single-filing property taxpayers will be able to take an additional standard deduction of $500 and joint filers will be able to deduct $1,000 for state and local property taxes paid or accrued. The Senate still needs to approve the bill.
“Since President Bush signed this initiative into law, I’ve heard from many New Jerseyans who will benefit from this new property tax relief initiative,” Holt said. “I’m pleased the House has taken the first step in ensuring that families can receive this deduction for another year.”
In 2005, there were 72.3 million owner-occupied households in the United States, but only 40.5 million taxpayers claimed an itemized deduction for real estate property taxes. The more than 30 million homeowners who don’t currently benefit from property tax deductions include elderly homeowners who no longer itemize in order to receive a mortgage interest deduction but are still subject to high property taxes.
The standard federal tax deduction is adjusted each year for inflation, but that adjustment does not take into account the rising property tax values and increases. Based on Census data, the total amount of state and local property taxes paid in the United States increased by 50 percent from 2000 to 2006. Over the same period of time, inflation increased by only 17 percent. Over that time, median household income actually dropped by 2 percent.
# # #
|
|
|
|
