County council approves property tax credit for ages 55+ but removes income limit

SOUTH BEND — The St. Joseph County Council voted 9-0 to approve a tax credit for homeowners age 55 and older, but they stripped the income limit.

As written, the credit was going to be for homeowners whose income is $75,000 or less for an individual and $150,000 or less for a married couple.

But council member Mark Catanzarite offered an amendment Tuesday to remove the limit, calling it “equity for all” and saying that “anybody should be able to access” the credit.

Council member Randall Figg was the only council member to vote against the amendment, feeling the lost revenue would hurt the various tax entities too much.

Without the income limit, consultant Steve Dalton has calculated that a total of $3.6 million could be lost across all 46 taxing units, which includes more than $375,000 lost by the county. If the income limits were kept, the county would have lost about $315,000, or a $60,000 savings.

The other units include many townships, towns, school districts, libraries, the airport, TRANSPO and tax increment finance districts.  

Oct. 11, 2023: Hearing over proposed tax credit weighs saving homeowners versus helping government

At last month’s public hearing on the tax credit, council member Bryan Tanner had suggested going with income limits of $45,000 for singles and up to $90,000 for married couples.

Council member Amy Drake, who’d introduced the measure a few months ago to help seniors with limited income, asked Tanner on Tuesday if he had an issue with removing the income limit. He said that he would rather do a different tax credit that was provided by a different bill in the state legislature. But he said he couldn’t debate the difference made by removing the limit.

County Auditor John Murphy said the county shouldn’t have a problem with the losses, thanks to its income, but he wondered whether smaller taxing entities could weather it, including the city of Mishawaka and libraries.

“If we find it was an issue, we could rescind it,” Drake said of the credit.

Council members have previously pointed out that the tax credit is voluntary. Residents would have to apply for it.

And thanks to the new state law that made this credit possible, the credit would end after three years.

Homeowners would be able to apply for the credit in 2024, and it would affect their bills in 2025. It would cap any increase in their property tax bill at no more than 2%. If last year’s bill was $2,000, for example, the most it could rise would be $40.

The credit is only for those with a homestead exemption. Per the new state law, you can’t receive both this credit and the state’s Over 65 Circuit Breaker Credit.

South Bend Tribune reporter Joseph Dits can be reached at 574-235-6158 or jdits@sbtinfo.com.

This article originally appeared on South Bend Tribune: St. Joseph County Council approves property tax credit for seniors