Washington, D.C. – A version of the language of Congressman Baron Hill’s Property Tax Relief Act was included in the Temporary Tax Relief Act of 2007 passed this afternoon by the U.S. House of Representatives.
“I have heard from many constituents about how hard they have been hit by increased property taxes,” Hill said. “And, as a homeowner in Southern Indiana myself, I understand their concerns. My colleagues in Congress are also hearing about skyrocketing property taxes from their constituents and I am very pleased we were able to address this problem at the federal level.”
The Temporary Tax Relief Act of 2007 would offer more than $50 billion in middle-class tax relief and would save more than 35,000 Hoosiers in the Ninth Congressional District from having to pay the higher, Alternative Minimum Tax next year. The Alternative Minimum Tax was originally designed to ensure that very wealthy individuals do not avoid paying income tax. Because the law does not account for inflation, the tax now threatens to impact middle-class families and raise taxes on 23 million Americans next year if Congress fails to take action. Due to Congressman Hill’s efforts, the bill also incorporates a provision for real property owners to increase the standard deduction by $350 for single filers and $700 for joint filers.
Congressman Hill has also introduced a separate bill, H.R. 3726, the Property Tax Relief Act of 2007, which would allow homeowners who do not itemize to deduct their property taxes from their federal income taxes. Currently, the only citizens benefiting from the property tax deduction are those who itemize their taxes. Estimates suggest that approximately 40% of homeowners do not itemize.
“I am very pleased that my bill got the discussion started about what we can do, as Members of Congress, to ease the property tax burden for our constituents,” Hill said. “I will still champion my Property Tax Relief Act but thank my colleagues for including some real tax relief for homeowners.”
At a press conference Friday following passage of the Temporary Tax Relief Act, Hill was praised for championing property tax relief.
“I applaud Baron Hill for his leadership and dedication to the people of Southern Indiana,” Chairman of the Ways and Means Committee Charlie Rangel said. “Baron Hill has been a leader in the fight to protect working families and deliver real tax relief to homeowners who are struggling with the cost of soaring property taxes. His critical contributions to this debate have helped ensure that property tax relief was included in our bill and I look forward to working with him in the future to ensure that this provision is enacted into law.”
House Majority Leader Steny Hoyer added: “Property taxpayers all over this country are going to be pleased with the Baron Hill provision—it is going to give them some real relief. Thank you for your leadership on this extraordinary effort, Congressman Hill.”
The Temporary Tax Relief is fully paid for and will not add to the deficit and will grow our sagging economy with tax relief to promote innovation and high-paying jobs.