States Seek Balance as Property Tax Relief for Seniors Gains Momentum Amid Rising Housing Costs

The price people pay for owning a home, known as property tax, has been rising in the United States. This is because houses have become more valuable over the last five years, which has made it harder for many to afford a home.

Older people, especially those who get a set amount of money each month, feel this pressure the most.

Some places in the U.S., including several states and Washington D.C., help senior citizens by letting them pay less or no property tax. This year, seven states are working on making these tax breaks even bigger, with some leaders wanting to get rid of property taxes for older home buyers.

Florida, where a lot of retirees live, is very interested in these changes, but some people worry about what this could mean for local services that are often paid for with property tax money.

Here's what is happening across the country:

Fifteen states and Washington D.C. offer different ways to make property taxes lighter for seniors. For example:
 

• In Alabama, older people don't pay state property taxes but might pay county taxes.
• Alaska lets people 65 or older ignore the first $150,000 of their home's value when taxes are calculated.
• In Florida and South Carolina, those over 65 are excused from paying taxes on up to $50,000 of their property's value.
• Elderly homeowners in states like Georgia, Indiana, Iowa, Kentucky, Mississippi, Nebraska, New York, North Carolina, Ohio, and Texas can also enjoy various tax reductions or exemptions based on their home's value.
• Washington state has a system where the amount of tax reduction depends on the homeowner's income.
• Other states like Arizona, Arkansas, Louisiana, Oklahoma, and Idaho are making sure that senior homeowners' taxes do not go up every year by freezing them.

Seventeen additional states offer tax credits to help senior homeowners pay their property taxes. These states include places like Connecticut, Delaware, Kansas, and many more.

Experts in tax law and economics explain that while cutting or removing property taxes for older people can make housing more affordable for them, it can also reduce the amount of money available for public needs like schools, police, and roads. If seniors don't pay these taxes, the government might have to get that money from other taxpayers or cut public services.

Right now, seven states are looking into laws that would greatly lower or even get rid of property taxes for older people. For instance:
 

• Maine has a proposal to end property taxes for seniors.
• Michigan might let people over 70 keep all their property tax money.
• In Minnesota, there's a plan for a special tax credit for homeowners 65 and older.
• Other states like Ohio, Oklahoma, and Oregon are also considering changes to give more tax relief to seniors
• Texas is discussing raising the amount of tax exemption for them.

To sum up, many states are trying to help older homeowners with their property taxes, but it's a tricky balance between providing this help and making sure there's enough money for public services.

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