Elrod: County taxes to rise over two years

Tax Commissioner Don Elrod says homeowners with homestead exemptions should brace themselves for additional property taxes this year and the next.

The state homestead tax relief grant that funded an increased homestead exemption for homeowners for the last several years will not be available this year. Declining state revenues during the current recession means there is no money for the state to give the tax relief to homeowners with homestead exemption, said Elrod.

This will mean a property tax increase of $225 to $260 on the 2009 tax bills for many Jackson County homeowners.

The grant appropriated by the General Assembly and the governor for the last several years to counties, cities and schools had given tax relief to homeowners in the form of a credit on their tax bills. According to legislation passed this year (House Bill 143), the grant will only be made available in the future if state revenues grow at least three percent plus the rate of inflation.

Elrod encourages homeowners to prepare for the increase now before tax bills are issued later this year.

“It’s unfortunate in slow economic times to have to deliver this message, but homeowners need to know now so they can plan accordingly with their household budgets or make sure that tax escrows are properly funded with their mortgage companies to handle the tax increase,” Elrod said.