Hercik: Homestead tax relief not just around corner
People are peppering the Fayette County Tax Assessment Office with inquiries, in the mistaken belief that state legalization of slot machines earlier this year means immediate money in their pockets. “They’re actually calling now, saying, ‘When do I get my check?'” says chief assessor James A. Hercik, CPE.
He adds that some even want to know if they’ll get the cash in time for Christmas.
They might — by Christmas 2007.
That’s when Hercik estimates the state will have awarded gaming licenses, taken in slots proceeds for the required full year, and then decided what level of school tax reduction it can provide.
But in no case will homeowners who qualify under Act 72, also known as the Homestead Program, ever get a rebate check like the state mailed out a few years back in a one-time deal.
Hercik said the slot machine revenue would go directly to the state’s 501 school districts, which will then adjust their millage downward to reflect the additional state reimbursement.
“Some people are confusing this (Homestead Program) with that rebate program of a couple years ago,” says Hercik. “But there is no ‘check in the mail’ this time. It’s a long, drawn-out process. I don’t think anybody’s going to see anything until 2007.”
And in the interim, says Hercik, real estate owners may actually see their school taxes increase, as school districts go that route to keep pace with inflation and pay for new programs and projects.
“There’s a chance that you’ll actually see tax increases on the local school level, before you see any tax relief from the state,” says Hercik.
He adds that his office has been inundated with calls from people who mistakenly think that filling out the card that qualifies them for the Homestead Program means tax relief is imminent.
“We’re still getting hundreds, thousands of phone calls from people who don’t understand,” says Hercik.
Hercik said his office has mailed out 25,000 Homestead Program application cards thus far, and has issued only 51 denials.
Only owner-occupied properties are eligible for school real estate tax relief under the Homestead Program.