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Property Tax Relief (Senate Bill 2032)
Property Tax Relief for Businesses
- The 2007 Legislature authorized the property tax relief for two years (based on property taxes for 2006 and 2007, payable in 2007 and 2008). The relief is provided in the form of a credit to be claimed on 2007 and 2008 income tax returns.
- The credit is equal to ten percent of the commercial property taxes, up to a maximum credit of $1000 for a C corporation and married individuals filing jointly or $500 for single individuals and married individuals filing separately.
- Mobile home taxes due in 2007 and 2008 for mobile homes classified as commercial property also qualify.
- The credit is claimed on your Corporation or Individual Income Tax Return.
- Pass-through entities, such as partnerships, S corporations, and limited liability companies calculate the credit on the commercial property taxes paid. The credit is passed to the owners based on their ownership interests.
- If the allowable property tax credit exceeds the taxpayer’s income tax liability, the unused portion of the credit can be carried forward for up to five years.
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