tax relief – Eshcinsel http://eshcinsel.net/ Sun, 17 Apr 2022 16:02:36 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://eshcinsel.net/wp-content/uploads/2021/10/icon-41-120x120.png tax relief – Eshcinsel http://eshcinsel.net/ 32 32 Property tax relief available for Richmond seniors https://eshcinsel.net/property-tax-relief-available-for-richmond-seniors/ Sat, 19 Mar 2022 19:09:17 +0000 https://eshcinsel.net/property-tax-relief-available-for-richmond-seniors/ RICHMOND, Va. (WRIC) — If you live in Richmond and are over 65 or disabled, you could get a significant reduction in your property taxes this year. The city is helping eligible homeowners complete their applications for a program that reduces the amount owed on property taxes — or eliminates them altogether. “It’s tax relief […]]]>

RICHMOND, Va. (WRIC) — If you live in Richmond and are over 65 or disabled, you could get a significant reduction in your property taxes this year.

The city is helping eligible homeowners complete their applications for a program that reduces the amount owed on property taxes — or eliminates them altogether.

“It’s tax relief for the elderly and disabled,” said Richmond Revenue Commissioner Valerie Weatherless. “And what that implies is that if a person is over 65, owns and lives in their own home, they can get between 20% and 100% relief on their property taxes. “

Other eligibility requirements include income below $60,000 and total assets – not including the applicant’s primary residence – below $350,000. Applicants are requested to provide a bank statement dated December 2021 to demonstrate their assets.

Southside residents receive assistance with their tax relief requests at the Southside Community Center, March 19, 2022. (Photo: Timothy Corley/WRIC)

On Saturday, volunteers from the Southside Community Center helped residents fill out their applications — a process that can be confusing for Richmond seniors.

The relief is part of a three-year program, which means seniors must complete an application in the first year. Then, for the next two years, they need only sign and date a “recertification form” to continue participating. In the fourth year, they must reapply.

“There are so many people who can apply for this program, and if it’s about having someone to help you fill out the application, we’re here to help,” Weatherless said.

The city is able to help people by providing transport or picking up completed documents. You can get help and apply by calling (804) 646-3015 or visiting tax relief webpage.

]]>
More states are joining the bandwagon to cut income taxes https://eshcinsel.net/more-states-are-joining-the-bandwagon-to-cut-income-taxes/ Thu, 17 Mar 2022 00:46:26 +0000 https://eshcinsel.net/more-states-are-joining-the-bandwagon-to-cut-income-taxes/ The South Carolina State House Getty Income tax cut bills continue to sweep through state legislatures in 2022. Remarkably, they do so in many cases with broad support from Democrats and Republicans alike. . In a unanimous bipartisan vote, the South Carolina Senate passed legislation on March 11, this will reduce the state’s top marginal […]]]>

Income tax cut bills continue to sweep through state legislatures in 2022. Remarkably, they do so in many cases with broad support from Democrats and Republicans alike. . In a unanimous bipartisan vote, the South Carolina Senate passed legislation on March 11, this will reduce the state’s top marginal tax rate from 7%, currently the highest tax rate in the southeastern United States, to 5.7%. The passing of this income tax cut in the South Carolina Senate comes weeks after the South Carolina House unanimously approved legislation that also provides income tax relief, but differs from the Senate plan in a few key details.

While the bill passed by the Senate lowers the top marginal tax rate to 5.7%, the bill approved by the House lowers it to 6% over the next five years. The House and Senate tax plans exempt military retirement income from state taxes. The income tax cut passed by the Senate also reduces property taxes for manufacturers. The House-approved plan, meanwhile, collapses the lower brackets to which the higher rate does not apply into a single 3% bracket. With the help of healthy fiscal reserves and a continued surplus, 2022 is shaping up to be the year South Carolinians stop watching neighboring states pass tax breaks as Palmetto State’s tax code remains intact.

“There is a substantial amount of money in dollars not only coming from General Fund revenues, but also from the federal government,” noted Sen. Tom Davis (R-Beaufort). Davis added that, “given the robust growth, recurring revenue and all that one-time money, these tax cuts weren’t unreasonable in this context.”

While the income tax reduction programs that have gone through both houses of the South Carolina Legislature will bring relief to South Carolinians, the state will likely still have the income tax rate highest income in the region, even though South Carolina’s top rate is cut to 5.7% as the plan passed by the Senate requires. As such, top lawmakers say this is just the first step in a journey toward a more comprehensive overhaul of the state’s tax code. “We are not doing a comprehensive tax reform. I understand,” noted Sen. Sean Bennett (R-Summerville) in early March. “Do you know why? Because it’s hard.”

There is a reason why reducing the rate to 5.7% will not relieve South Carolina of its current distinction of being the country with the highest income tax rate in the region and that reason is the recently voted tax cut in the Georgia State House. Georgia is one of several states where lawmakers have increased their tax advantage over South Carolina and other states in recent years with the enactment of income tax relief. In 2018, then-Governor Nathan Deal (R) signed into law an income tax cut that raised the state’s top rate from 6% to 5.75%. In 2021, Governor Brian Kemp (R) granted more tax relief by signing into law legislation to increase the standard deduction. Now Governor Kemp and Georgia lawmakers are proposing legislation this year that will again cut the state’s top tax rate and collapse the lower brackets to create a fixed income tax of 5.25%.

The Georgia House of Representatives adopted this income tax reduction on March 9 with a 115-52 vote. The state Senate is expected to follow suit, sending the income tax cut to Gov. Brian Kemp’s office sometime this spring. When asked if Stacey Abrams, the Democratic nominee to take Governor Kemp from her, supports the income tax cut recently approved by the Georgia House, Abrams’ campaign declined to comment.

A similar dynamic to Abrams’ first gubernatorial bid four years ago is again at play. During this campaign in 2018, the Georgia legislature passed the aforementioned income tax cut. which was eventually signed into law by then-Governor Deal. After initially opposing and denouncing this income tax cut, Abrams then went on to clarified his opposition note that she would not seek to repeal this income tax cut if elected governor.

On March 4, Kentucky joined the list of states seeking to become the 10th income tax-free state when the state House of Representatives passed Bill 8, a law that will reduce income tax from 5% to 4% next year. HB 8 will also plan for the complete elimination of state income tax over time, provided specified revenue targets are met in future years.

“We compete with 49 other states in a truly global economy, and tax policy moves people,” noted Kentucky Rep. Steven Rudy (R-Paducah) explaining the motivation to provide tax relief and ultimately eliminate income tax altogether.

Being bordered by Tennessee, a no-income-tax state where lawmakers continue to find ways to further improve their tax code and provide even more relief to taxpayers, it is especially imperative that Kentucky lawmakers seek ways to make their tax code more competitive and less burdensome. The income tax phase-out bill passed by the Kentucky House is now before the state Senate for consideration. The legislative session is expected to adjourn in mid-April.

Kentucky isn’t the only state bordering Tennessee where lawmakers are proposing legislation to join the voluntary state in the club of no-income-tax states. 10 days after the Kentucky House approved its bill to phase out its income tax, legislation to phase out Mississippi’s income tax was sent to the Mississippi House of Representatives. The income tax phase-out plan passed by the Mississippi House on March 14 was a revised version of a proposal that passed the Mississippi House in January by a bipartisan vote of 107 to 4.

‘We can lay down the welcome rug for dreamers and visionaries,’ Governor Tate Reeves (R) noted the prospect of Mississippi becoming a state with no income tax. “We can move more money through our economy. And that can lead to more wealth for all Mississippians.

The ball is now back in the court of the Mississippi Senate, where members aren’t as keen on phasing out the state income tax as the House of Representatives and Governor Reeves are. The Mississippi legislative session is due to end in April and it is possible that this matter will be referred to a special session.

The push for income tax relief and even elimination is not limited to southern states or even red states this year. Indiana lawmakers approved a bill on March 9, the last day of the 2022 legislative session, which will reduce Hoosier’s state flat tax rate from 3.23% to 2.9% over the next seven years. On March 1, Iowa Governor Kim Reynolds (R) signed an invoice to reduce his state income tax to a flat rate of 3.9% over the next four years. Changes signed into law by Governor Reynolds and Iowa lawmakers significantly reform and simplify the state’s income tax code, which currently consists of nine different brackets with a top rate of 8.53%. The move by Reynolds in Iowa came weeks after Idaho Governor Brad Little signed into law the state’s first income tax cut of 2022, which was the largest in the state. Idaho history. Shortly after Idaho lawmakers enacted the state’s first income tax cut of the year, Utah lawmakers followed suit.

Idaho and Utah may not be the only Mountain West states where taxpayers are getting an income tax cut in 2022. On March 16, a ballot has been filed with the Colorado Secretary of State that, if approved by voters in November, will reduce Colorado’s flat tax rate from 4.55% to 4.40%. Colorado voters cut state income tax from 4.63% to 4.55% in 2020 by approving Proposal 116. Legislation to reduce state income tax was recently defeated in committee. Although the Democratic-controlled House and Senate in Colorado seem unwilling to pass income tax relief, voters will now have the opportunity to do so themselves.

“Fortunately, we have placed a permanent income tax cut on the ballot this fall,” writes Jon Caldara, president of the Independence Institute and sponsor of the new income tax cut that will will appear on the November ballot. “It will be fascinating to see if voters agree with the Democratic lawmaker who killed the idea.”

The income tax cut offered to Colorado voters in 2020 was opposed by Democratic leaders in the state legislature but was supported by Gov. Jared Polis (D). It will be interesting to see if Governor Polis opposes his party again by backing the new income tax cut in November. Governor Polis’ office has been contacted to see if the Governor has a position on the new income tax cut to appear on the 2022 general election ballot. This article will be updated to include the Governor’s office’s response. governor, if any.

Lawmakers in 14 states have enacted income tax relief in 2021. It will be tough to top that in 2022, but based on activity in state capitols so far, it’s possible. .

]]>
How to Make the Most of Capital Gains Tax Exemptions https://eshcinsel.net/how-to-make-the-most-of-capital-gains-tax-exemptions/ Sat, 12 Mar 2022 13:09:10 +0000 https://eshcinsel.net/how-to-make-the-most-of-capital-gains-tax-exemptions/ Whether you are saving or investing, tax efficiency is an important aspect to consider as it can make a significant difference to your overall wealth and minimize the tax burden. Capital Gains Tax (CGT) is levied on gains realized after the sale, transfer, gift or exchange of certain assets. CGT is the amount, which is […]]]>

Whether you are saving or investing, tax efficiency is an important aspect to consider as it can make a significant difference to your overall wealth and minimize the tax burden. Capital Gains Tax (CGT) is levied on gains realized after the sale, transfer, gift or exchange of certain assets. CGT is the amount, which is the difference between the selling price and the buying price of any asset.

The tax generally applies to stocks, investment funds, secondary properties, sale of a business, inherited properties, valuable assets, assets transferred below market value and cryptocurrencies .

CGT in the UK depends on two things: whether the taxpayer is a base rate, top rate or additional rate taxpayer, and the type of asset being sold. If you are a higher or additional rate taxpayer, you must pay 28% on the gain from residential property and 20% on other taxable assets, and base rate taxpayers must pay 18% on residential property and 10% on other assets.

© 2022 Kalkine Media®

Tax experts are urging Britons to make the most of the capital gains tax relief before the April 5 deadline as CGT bills are set to rise. Savers can choose to hold their stock market-linked investments in an Individual Savings Account (ISA) or in tax-exempt retirement accounts. For the 2021/22 tax year the capital gain deduction is £12,300 meaning that if your gain is less than this amount in that tax year no capital tax must be paid.

Here are five ways to make the most of capital gains tax exemptions.

  1. Compensated losses

You can minimize your CGT liability by using losses to offset your gains in the same tax year. As CGT is calculated on the gains you make from selling assets, you can deduct your gain from the losses you incurred from selling other assets that have depreciated in value.

Additionally, you can carry forward unused losses from previous tax years to bring your gains back under the exemption limit, provided they are reported to HM Revenue & Customs (HMRC) within four years of the end of the tax year. tax year in which the assets were sold. When calculating CGT liability, you can also offset certain transaction costs such as attorney fees or realtor fees.

  1. Transfer of assets

If you are married or in a civil partnership you can use two sets of allowances totaling £24,600 as it is exempt from CGT meaning you can transfer assets to your partner, known as transfer between spouses to take advantage of the CGT exemption. .

There are often no transfer fees. You can contact your broker, platform or advisor to facilitate the transfer.

Read also : What are the best lifetime ISAs right now?

Use annual allowances

If you invest in assets beyond the ISA or retirement packages and hold the asset long-term without selling it, you can accumulate a huge CGT liability that will be taxed when you sell all of your holdings. This is also known as pregnancy gain.

To avoid this, try to use your allocation each year by giving away a portion of the asset to reduce the risk of incurring a large CGT liability in the future. The CGT allowance cannot be carried over to the following tax year.

The CGT allowance cannot be carried over to the following tax year.

© 2022 Kalkine Media®

  1. Using the ISA and Retirement Allowances

Profits made on assets held in ISA and retirement accounts are exempt from CGT, so it makes sense to use tax-advantaged retirement allowances and ISAs, especially for a higher-rate taxpayer. For the 2021/22 tax year the ISA allowance is £20,000 and for married couples and civil partners it is £40,000.

You may consider disposing of all of your assets to use the CGT exemption and then immediately redeeming the same assets inside the ISA account. This strategy is known as Bed and ISA or Bed and Pension.

Also read: 5 stock investing tips for female investors

  1. Invest in an Enterprise Investment Program (EIS)

You can consider reinvesting your capital gain in Enterprise Investment Scheme (EIS) companies which are exempt from CGT. EIS companies are small, unlisted and start-up companies and are therefore very risky and illiquid. In addition, investing in these companies comes with a 30% income tax credit. A CGT liability is only deferred when investing in EIS and recrystallizes when the ESI shares are sold, but it may be possible to continue to defer the liability.

]]>
Will property taxes ruin your investment? | Hahn Loeser & Parks LLP https://eshcinsel.net/will-property-taxes-ruin-your-investment-hahn-loeser-parks-llp/ Fri, 11 Mar 2022 19:07:29 +0000 https://eshcinsel.net/will-property-taxes-ruin-your-investment-hahn-loeser-parks-llp/ Property buyers often fail to factor in the tax increase associated with their potential sale price when running cash flow pro formas. In Ohio, the sale price is considered fair market value for property tax purposes. Prudent buyers should estimate and pro-rate taxes assuming the sale price is the basis for the value of their […]]]>

Property buyers often fail to factor in the tax increase associated with their potential sale price when running cash flow pro formas. In Ohio, the sale price is considered fair market value for property tax purposes. Prudent buyers should estimate and pro-rate taxes assuming the sale price is the basis for the value of their investment. Otherwise, a “standard” pro rata clause in the purchase agreement will force the buyer to pay the increased tax themselves, even for the part of the year the property belonged to the seller.

As real estate values ​​continue to climb at historic rates, property taxes can be a hidden trap when it comes to crunching numbers for a seemingly safe real estate investment. Prudent investors should analyze their potential real estate transactions based on cash flow, which is the cash generated from the remaining property after all expenses have been paid, including property taxes. But, in many states, such as Ohio and Illinois, property taxes are paid in arrears. This means that taxes for the current year are not due and paid until the following year, and the amount due is often affected by the purchase price of your future contract. This alone causes a great deal of confusion when it comes to accurately analyzing a real estate investment, including assessing the possibility of a new increased tax burden for the property.

Many do not realize that in many cases property taxes are set based on the purchase price of an arm’s length transaction. So if your potential property is currently assessed at $2 million by the auditor for property tax purposes and you are considering offering a purchase price of $8 million, you can expect that a large increase in the property’s property taxes becomes effective for the current year, but due and payable the following year. Many investors, even the most savvy ones, may forget to account for this increase in relying on the current tax bill for their cash flow calculations, or grossly underestimate the potential increase in tax burden. This can lead to overpayments on investments and (swallow!) negative cash flow.

So what can be done to ensure that you have solid calculations for your potential investment? First, always check with the county auditor to determine the current market value set by the auditor for tax purposes. This is public information easily accessible online. Second, if your proposed purchase price is higher than the auditor’s market value, you can usually expect your property taxes to increase based on the sale. In order to determine the new tax burden, many counties have online calculators that can be used to estimate the new property tax amounts. However, if no tax calculator is available, you can simply divide the current tax bill by the current market value established by the auditor and get the current tax percentage. Then apply the current tax percentage to your proposed purchase price, and voila! – you have your new estimated tax bill.

Another issue that investors should be aware of when crunching numbers and determining the best purchase price for a property investment is whether there are any tax deductions on the property. A tax abatement is an exception to property taxes, which means that none are due. The tax allowances can be for the total value of the property, or for a part. However, it is important to note that tax allowances are generally valid for a fixed period. Therefore, you will want to know when the tax relief was granted and how long it will be in effect. Next, you’ll need to calculate the new tax burden based on your proposed purchase price and determine when those taxes will eventually start accumulating.

Finally, when buying a new property, consider requiring favorable terms in the purchase agreement regarding the structure of the transaction and/or the pro rata tax paid by the seller at closing. Again, since taxes are paid in arrears in Ohio, buyers typically get a per diem credit from the seller at closing for the part of the year the seller owned the property. This pro-rata is usual because the tax bill for the year the seller owned the property will be paid in full by the buyer when it finally becomes due the following year. So if the tax burden increases based on the sale price, but the seller’s pro-rated credit is based on the lowest existing tax burden, you’re not getting a fair credit for the period the seller owned. of the property. There are also ways to creatively structure a deal to try to avoid a large tax increase. However, these strategies aren’t guaranteed to work, so the new tax burden should still factor into your bottom line. It is important to resolve these property tax issues before or at closing, as many standard purchase agreements make the pro rata final at closing. Even though there is language permitting a post-closing recalculation of the tax pro rata, the merger doctrine, which states that all matters under the purchase agreement merge into the deed at closing, may preclude such a pro rata if specific language is not included in the act of preserving the show.

Property taxes can get complicated, but the help is there! Don’t hesitate to contact an experienced real estate attorney to guide you through the tax issues and pitfalls before committing to that new investment property!

]]>
Some Disabled Idaho Veterans May Qualify for Property Tax Reduction https://eshcinsel.net/some-disabled-idaho-veterans-may-qualify-for-property-tax-reduction/ Fri, 11 Mar 2022 11:49:26 +0000 https://eshcinsel.net/some-disabled-idaho-veterans-may-qualify-for-property-tax-reduction/ According to a press release from the Idaho State Tax Commission, some Idaho disabled veterans may receive a reduction in their property tax bill of up to $1,500 on their residence in Idaho and up to an acre of land. To be eligible, veterans must be recognized as a 100% service-connected disabled veteran or receive […]]]>

According to a press release from the Idaho State Tax Commission, some Idaho disabled veterans may receive a reduction in their property tax bill of up to $1,500 on their residence in Idaho and up to an acre of land.

To be eligible, veterans must be recognized as a 100% service-connected disabled veteran or receive 100% compensation from the United States Department of Veterans Affairs for individual unemployability. Other qualifications include:

  • The veteran owns and lives in a home in Idaho that is their primary residence as of April 14, 2022. Mobile homes are also eligible.
  • The property has a current owner exemption.

There is no income limit, but an application must be submitted each year. Applications are available on the tax commission’s website or through the county assessor. Applicants need a current letter from the VA confirming their 100% service-related disability status or 100% compensation as of January 1, 2022. The county assessor must receive the request by April 18.

Disabled veterans may also be eligible for greater property tax relief based on their income. Read it Property tax reduction flyer for more information. For all other questions, call the Idaho State Tax Commission at 208-334-7736 or toll-free at 800-334-7756.

]]>
Session ends with bipartisan income tax cut | Local News https://eshcinsel.net/session-ends-with-bipartisan-income-tax-cut-local-news/ Wed, 09 Mar 2022 20:38:38 +0000 https://eshcinsel.net/session-ends-with-bipartisan-income-tax-cut-local-news/ INDIANAPOLIS — In the early hours of Wednesday, lawmakers finalized their bills for the 2022 session and found common ground on income tax cuts that offered a compromise between the House’s desire to cut taxes and the Senate’s wish for caution. The cuts will be phased in over 10 years until the tax rate drops […]]]>

INDIANAPOLIS — In the early hours of Wednesday, lawmakers finalized their bills for the 2022 session and found common ground on income tax cuts that offered a compromise between the House’s desire to cut taxes and the Senate’s wish for caution.

The cuts will be phased in over 10 years until the tax rate drops to 2.9%, which would tie Indiana to North Dakota, which now has the lowest tax rate in the country.

The first tax reduction occurs in 2023 when it goes from 3.23% to 3.15%. Subsequent cuts have triggers and will only take effect if revenues increase by 2% and pre-1996 teachers’ pension obligations are honored.

“What we want to do is continue to make sure that we are accountable and that we keep as much money in Indiana’s economy and not just in state coffers,” the president said. of the House, Todd Huston, R-Fishers.

Senate GOP Leader Rodric Bray, R-Martinsville, remained adamant that with Ukraine’s uncertainty, supply chain issues and labor challenges, the The state needed to approach tax cuts in a measured way.

“I think with those triggers it won’t let us go too far over and beyond our skis and will keep Indiana moving very carefully and responsibly.”

The Indiana Chamber of Commerce said lawmakers failed to support a business-friendly tax cut that would have removed the 30% cap on personal property for businesses. The senators said the tax would hurt municipal budgets that depend on the tax.

“It’s unfortunate that Senate Republicans don’t see that (the tax) shouldn’t be happening and only serves to discourage large capital investments in Indiana,” said Kevin Brinegar, president and CEO. House leadership, in a statement.

The bill also repeals Indiana’s 1.4% utility tax effective July 1.

The bill passed unanimously in the Senate, with 11 Democrats joining the Republican supermajority, but House Democrats did not share the same enthusiasm.

At least two Democrats, Reps. Rita Fleming and Terri Austin, D-Anderson, voted for the tax cuts and broke with fellow Democrats.

Democrats pushed unsuccessfully to suspend the state gas tax until July 1, saying it would bring immediate relief to Hoosiers as gas prices soar above $4 a gallon .

With about $5 billion in state reserves, Democrats said the state could overcome the estimated $300 million loss.

“We thought we could invest the money wisely and move the state forward,” said Minority Leader Phil GiaQuinta, D-Fort Wayne. “We think the Republicans made a mistake by not reducing the gas tax.”

Democrats also criticized the bill for providing minimal tax relief to Hoosiers when funds could be spent to invest in areas of human infrastructure such as preschool or higher education.

Still, GiaQuinta and her Senate counterpart, Sen. Greg Taylor, D-Indianapolis, said their caucuses had achieved successes, including defeating Bill 1134, which educators say would limit their ability to teach about the race. in class. Proponents said it provided transparency for parents.

“Teachers did a great job being here, but if (Republicans brought it) this year, they’ll bring it back again, so teachers (shouldn’t) sleep on it,” Taylor said.

Although the 2022 legislative elections have just ended, lawmakers could return to the capital before the start of the 2023 session in January.

More than 100 lawmakers have signed a letter to Governor Eric Holcomb urging him to call a special legislative session if the U.S. Supreme Court overturns Roe v. Wade. The Supreme Court is expected to issue a decision in June.

]]>
South Carolina Senate Committee Approves $1 Billion in Income Tax Refunds | Caroline from the south https://eshcinsel.net/south-carolina-senate-committee-approves-1-billion-in-income-tax-refunds-caroline-from-the-south/ Tue, 08 Mar 2022 23:08:00 +0000 https://eshcinsel.net/south-carolina-senate-committee-approves-1-billion-in-income-tax-refunds-caroline-from-the-south/ (The Center Square) — South Carolina taxpayers could get an income tax refund of between $100 and $700 per tax return if a bill that passed a Senate committee on Tuesday is approved. The Senate Finance Committee unanimously approved the Income Tax Reduction Bill, S.1087and send the Comprehensive Tax Cut Act of 2022 to the […]]]>

(The Center Square) — South Carolina taxpayers could get an income tax refund of between $100 and $700 per tax return if a bill that passed a Senate committee on Tuesday is approved.

The Senate Finance Committee unanimously approved the Income Tax Reduction Bill, S.1087and send the Comprehensive Tax Cut Act of 2022 to the entire Senate.

The discounts, which will affect 2021 tax returns due next month, are part of a $1 billion discount. the invoice would also reduce the state’s two main tax levels (7% and 6%) to 5.7% for the 2022 tax year, a plan that would cost $887 million a year.

“There probably can’t be a better time than right now when everyone is actually suffering from the high gas prices and inflation that we’re having right now with food and everything else. “said Sen. Ronnie Cromer, R-Newberry. . “We really need to give back as much money as possible to our people right now, because they are suffering, as we can.”

The Senate plan features $2 billion in tax relief due to $1 billion in one-time rebates and $1 billion in recurring tax cuts. These reductions include a 33% reduction in property taxes in the manufacturing sector and would eliminate income tax on military retirement income.

The South Carolina House recently approved an income tax reduction planby a vote of 110 to 0, that would lower the state’s top tax rate to 6.5% from 7% for the 2022 tax year. The House bill would also lower that maximum rate of 0.1 percentage point each year, starting in 2023, until it reaches 6%.

This bill has been described as a $1 billion tax cut by Governor Henry McMaster and the leadership of the House.

After the Senate Finance Committee approved the Senate bill, Sen. Darrell Jackson, D-Hopkins, joked, “We’re all having tea now.

Senate Finance Committee Chairman Tom Davis said the state can afford the rebate and reductions because it should have $4.6 billion surplus over the next two fiscal years, based on South Carolina Council of Economic Advisors (BE A).

The bill would eliminate tax on the first $3,200 of income, then an additional tax of 3% minus $96 up to $6,410, 4% minus $160 up to $9,620, 5% minus $256 up to $12,820 and 5.7% thereafter.

The legislative leadership is trying to push the bills through before next month’s budget talks.

“Even if we consider substantial new recurring tax relief, relative to the funds we have available to increase, we would still increase general fund general spending by 6.5%,” Davis said of the upcoming budget.

Sen. John L. Scott, D-Richland, said the $1 billion rebate is intended for all filers, even though 43% of South Carolina residents do not pay income tax. These residents were still paying sales tax, so they participated in creating the surplus.

“It turns out to be a formula that really benefits the middle class disproportionately,” Davis said.

]]>
Senate to vote on measures to support Ukraine, reduce property tax burden and expand consumer protections https://eshcinsel.net/senate-to-vote-on-measures-to-support-ukraine-reduce-property-tax-burden-and-expand-consumer-protections/ Wed, 02 Mar 2022 21:17:00 +0000 https://eshcinsel.net/senate-to-vote-on-measures-to-support-ukraine-reduce-property-tax-burden-and-expand-consumer-protections/ S.144 Sa Diegnan, Patrick J./ Beach, James Establishes the “COVID-19 Frontline and Healthcare Worker Memorial Commission”. S.330 Sca Singleton, Troy/ Scutari, Nicholas P. Increase distribution to municipalities of the Property Tax Relief Fund on energy tax receipts over two years to restore municipal assistance reductions; requires that the additional assistance be deducted from the municipal […]]]>
S.144 Sa

Diegnan, Patrick J./

Beach, James

Establishes the “COVID-19 Frontline and Healthcare Worker Memorial Commission”. S.330 Sca

Singleton, Troy/

Scutari, Nicholas P.

Increase distribution to municipalities of the Property Tax Relief Fund on energy tax receipts over two years to restore municipal assistance reductions; requires that the additional assistance be deducted from the municipal property tax levy. S.343 Sca

Singleton, Troy/

Scutari, Nicholas P.

Increases, from 18% to 30%, the amount of rent defined as rent constituting property taxes for the purpose of deducting from gross income for the payment of property taxes. S.356

Gopal, Wine

Provides lifetime bans from driving a commercial motor vehicle and a transit system company vehicle for those convicted of human trafficking. S.380

Rice, Ronald L./

Pou, Nellie

Establishes a disparity in the treatment of persons with disabilities in the DCA Underrepresented Communities Commission. S.464 Sca

Sacco, Nicholas J./

Lagana, Joseph A.

Revises the terms of use of virtual or distance education to meet the requirement of a minimum school year of 180 days. S.521

Cruz-Perez, Nilsa I.

Expressly allows medical cannabis patients under the age of 18 to have up to four designated caregivers. S.737/951 Scs

Lagana, Joseph A./

Gopal, Wine/

Turner, Shirley K.

Excludes contributions made to certain retirement savings plans as tax on gross income. S.757

Sarlo, Paul A./

Oroho, Steven V.

Authorizes circumstantial events on certain farms in a preserved agricultural environment, under certain conditions. S.783 Sca

Singleton, Troy/

Beach, James

Establishes the Opioid Recovery and Remediation Fund and the Opioid Recovery and Remediation Fund Advisory Council; provides funds received from opioid settlements to support prevention and treatment programs for substance use disorders. S.891 Sca

Pou, Nellie/

Scutari, Nicholas P.

Prohibits tax preparers from engaging in certain practices involving prepayment checks and loans. S.902 Sca

Pou, Nellie

Imposes consumer protection requirements on service providers. S.1535

Greenstein, Linda R.

Allows counties to operate airports as county utilities; provides that bonds for county and municipal airport purposes shall be issued in accordance with the provisions of the “Local Bonds Act”. S.1802

Cryan, Joseph P./

Scutari, Nicholas P.

Provides an additional $25 million to HMFA for the Capital Improvement Assistance Program. S.1889

Sarlo, Paul

Imposes certain prohibitions on state and local governments regarding businesses associated with Russia. SR.15

Cruz-Perez, Nilsa I.

Urge the DRPA to create a toll rebate program for military veterans. SR.63

Scutari, Nicholas P./

Cryan, Joseph P.

Recognizes May 2-8, 2022 as Trenton Navy Week. ACR.115

(RCS.88)

Coughlin, Craig J./

Di Maio, John

Cryan, Joseph P./

Cruz-Perez, Nilsa I.

Condemns the Russian invasion of Ukraine and supports the Ukrainian government and citizens.
]]>
Kentucky Senate passes income tax refund measure https://eshcinsel.net/kentucky-senate-passes-income-tax-refund-measure/ Tue, 01 Mar 2022 12:07:29 +0000 https://eshcinsel.net/kentucky-senate-passes-income-tax-refund-measure/ FILE – Republican Kentucky State Senator Chris McDaniel listens to testimony during a State and Local Government Committee meeting at the state capitol in Frankfort, Ky., February 19, 2020. Senate Republicans unveiled a tax relief proposal Thursday, Feb. 24, 2022, that would provide income tax refunds to Kentucky taxpayers in the latest proposal to provide […]]]>

FILE - Republican Kentucky State Senator Chris McDaniel listens to testimony during a State and Local Government Committee meeting at the state capitol in Frankfort, Ky., February 19, 2020. Senate Republicans unveiled a tax relief proposal Thursday, Feb. 24, 2022, that would provide income tax refunds to Kentucky taxpayers in the latest proposal to provide relief from rising consumer prices.  The legislation would provide personal income tax refunds of up to $500 per individual and up to $1,000 per household, Senator McDaniel said.  (AP Photo/Bryan Woolston, File)

FILE – Republican Kentucky State Senator Chris McDaniel listens to testimony during a State and Local Government Committee meeting at the state capitol in Frankfort, Ky., February 19, 2020. Senate Republicans unveiled a tax relief proposal Thursday, Feb. 24, 2022, that would provide income tax refunds to Kentucky taxpayers in the latest proposal to provide relief from rising consumer prices. The legislation would provide personal income tax refunds of up to $500 per individual and up to $1,000 per household, Senator McDaniel said. (AP Photo/Bryan Woolston, File)

PA

The Kentucky Senate on Monday passed a bill that would leverage the state’s huge revenue surpluses to provide more than $1 billion in income tax refunds to taxpayers.

The measure was approved by the Senate in a 28-7 vote just days after it was unveiled. It would provide personal income tax refunds of up to $500 per individual and up to $1,000 per household.

The proposal then goes to the House, where a separate measure introduced last Friday would phase out Kentucky’s personal income tax — with the long-term goal of eliminating the levy. The sweeping House bill would also extend the state sales tax to a host of services.

Budget and tax measures are expected to dominate the proceedings in the final weeks of this year’s legislative session. Republicans have qualified majorities in both legislative chambers.

GOP Sen. Chris McDaniel, who is sponsoring the income tax refund, said the measure would bring some relief to Kentuckians struggling with rising fuel, grocery and utility prices.

“This bill is not a statement about anything other than who gave that money to the state and who needs that money the most,” McDaniel said during Monday’s lengthy Senate debate.

One-time rebates are expected to cost the state up to $1.15 billion. If the proposal becomes law, the rebates should be distributed to Kentuckians by the end of this summer, McDaniel said.

Democratic Senator Reginald Thomas called it bad tax policy, saying large swaths of the state’s population — including retirees and the working poor — would not benefit from the refunds.

Instead, he presented a proposal to temporarily reduce the state sales tax rate as a way to largely mitigate rising consumer prices. Democratic Gov. Andy Beshear approved the bill, which proposes a one-year reduction in the sales tax rate from 6% to 5%. It would provide $873 million in tax relief for Kentuckians struggling with rising prices, the governor said.

Beshear also recently took executive action to provide relief to Kentucky taxpayers impacted by pandemic-related increases to their vehicle property tax bills. The order – resulting from an increase in the value of used cars – will amount to about $340 million in reduced vehicle property taxes, he said.

Sen. Morgan McGarvey, the leading Senate Democrat, urged his colleagues on Monday not to vote on reimbursement without knowing what impact the loss of revenue would have on the next state budget.

Noting the over $1 billion price tag of the proposed discount, McGarvey asked, “What investments aren’t we making to make that investment?”

Proponents of the bill said the state would still hold huge amounts of budget reserves and surplus revenue after paying refunds, along with another round of federal pandemic relief to allocate.

Supporters have pointed to the value of the discount for Kentuckians feeling the pinch of rising prices.

“For some of us, the amount of money we’re talking about in this bill may not make a big difference,” Republican Sen. Ralph Alvarado said. “But I would say for the average middle-class family in this state … it will make a huge difference. A thousand dollars is a lot of money for our Kentucky families.”

___

The income tax refund bill is Senate Bill 194.

]]>
Home Rich, Money Poor: How Utahns Cope With Rising Values ​​and Property Taxes https://eshcinsel.net/home-rich-money-poor-how-utahns-cope-with-rising-values-%e2%80%8b%e2%80%8band-property-taxes/ Mon, 28 Feb 2022 05:00:00 +0000 https://eshcinsel.net/home-rich-money-poor-how-utahns-cope-with-rising-values-%e2%80%8b%e2%80%8band-property-taxes/ Cheryl Johnson has lived in the same house for 60 years. The original stucco structure sits directly on the ground without the benefit of a concrete foundation, and the property draws water from a well in the backyard. In contrast to the old-fashioned charm of the home, Johnson has seen its surroundings transform from a […]]]>

Cheryl Johnson has lived in the same house for 60 years. The original stucco structure sits directly on the ground without the benefit of a concrete foundation, and the property draws water from a well in the backyard.

In contrast to the old-fashioned charm of the home, Johnson has seen its surroundings transform from a once-bucolic pasture into the budding modern town of South Salt Lake.

“When we moved into this house, there were only fields and horses, pheasants running around. Now we have apartments all around us,” Johnson said.

The rural character of the area isn’t the only thing that changed during Johnson’s time here – property prices also transformed from when the Johnsons in 1959 bought their home for a colossal sum of $10,000 – a world far from Price of $455,000 for an average home in his neighborhood today.

Despite the inherent benefits of property appreciation, it simultaneously puts some homeowners in a pinch, as creeping tax rates have made the cost of living harder to bear, and it puts Johnson among a growing contingent of Utahns “rich in house, poor in money” who see an increase in part of their fixed income swallowed up by the annual levy.

According to a new Tax modernization report of the Kem C. Gardner Policy Institute published this month.

Untapped tax breaks

The good news is that state and county relief programs exist, including the Circuit Breaker program, which allows for the reduction or abatement of property taxes on certain Utahns’ primary residences. However, the low enrollment in the program — currently less than 20% of those who qualify — raises questions about its usefulness and implementation, while leaving some wondering if leaders have done enough to help Utah seniors struggling to stay in their homes.

“We know there are many more who are eligible for help but don’t know it. That’s one of my biggest frustrations in the office is that the word didn’t get out despite our efforts,” said Salt Lake County Treasurer Wayne Cushing. His office oversees the county portion of the program that distributes breaks on a sliding scale to those earning between $12,174 and $35,807.

“Additional annual expenses of $1,000 to $2,000 make a big difference for someone on such a low income,” he said. “It helps them afford other necessities like prescriptions and food.”

The county’s efforts to spread the word include presentations at charitable and religious institutions and marketing campaigns. Yet for a relief program that’s been available for more than 30 years, the modest turnout raises questions about what the growing number of indigent older people are sacrificing to stay put.

“Obviously the goal is never to tax someone out of a house, so that’s what we’re trying to prevent,” Cushing said.

Cheryl Johnson talks about her home, where she has lived for nearly 60 years, in South Salt Lake on Thursday, Feb. 24, 2022. Her late husband and stepfather, both masonry workers, built the wall around the fireplace behind it in lava stone. Johnson is grateful for the Circuit Breaker property tax relief program, which helps her stay in her home as property taxes rise.

Kristin Murphy, Deseret News

The program is a godsend

Those like Johnson who discovered the program say circuit breaker relief is a boon during a phase of life when memories and closeness to a settled community have an outsized impact on quality of life, which is why selling, even for a handsome profit, is still a last resort.

“I wouldn’t trade my house for anything in the world. I wouldn’t trade it for a brand new house. I have too many memories in this house,” said Johnson, 80, who explained that the intangible value of his residence is irreplaceable after a lifetime of memories, including raising three children and running ad hoc businesses from the living room for win more. money, including daycare, a homemade wig service, and laundry facilities.

Johnson began to struggle with paying property taxes when her husband died of leukemia nine years ago. Medical expenses depleted her savings and, without a life insurance policy, she saw a growing portion of her fixed income gobbled up by property taxes, a problem faced by many Utah retirees.

“The death of my husband really hit me hard. I was struggling. I don’t know what I would have done if I hadn’t found this program,” she said.

An interconnected problem

Johnson provides an example of how property, retirement and health care issues are often intertwined, and highlights the need for smart property tax policy in a state with an aging population and persistent housing problems, which the Gardner Institute hopes to promote with its new report. .

“Property taxes and tax systems are complex and can be difficult to navigate. That’s why we’re doing these reports — to help inform,” said Phil Dean, author of the Tax Modernization report. He pointed out that “just because house prices go up doesn’t necessarily mean homeowners’ taxes go up because of how our truth-in-taxation process works.”

Utah’s Truth in Taxation Act requires taxing entities to undertake a rigorous public hearing process before increasing rates while monitoring the impact of rising property values ​​using a “certified rate which adjusts tax percentages downward as market values ​​rise to conserve owner revenue. coherent.

Yet rates are rising, and part of what makes the system confusing is because a myriad of entities have property taxing authority — including cities, counties, school districts, police, and districts. special services like waste and recycling – which undertake different rate increases independently.

Over time, these independent rate hikes have brought older Utahns like Johnson closer to the margins, and that’s why economists at the Gardner Institute are eager to educate leaders and the public about the multifaceted implications of the tax, in the hope to enable homeownership for Utahns from young adulthood. throughout their twilight years.

“Until I got married, I never lived in a house, I always lived in apartments, so it was a beautiful thing to move into that house. Back then, we were paying $75 per months for it,” Johnson said. “My house is everything to me. It’s old, but I wouldn’t trade it for anything in the world.

merlin_2910324.jpg

Cheryl Johnson poses for a portrait at her home, where she has lived for nearly 60 years, in South Salt Lake on Thursday, Feb. 24, 2022. Johnson is grateful for the Circuit Breaker property tax relief program, which helps her to stay in his house as property taxes rise.

Kristin Murphy, Deseret News

]]>