Published: August 28, 2008 12:40 pm         

Donnelly touts tax relief for property owners

A property tax relief bill backed by Congressman Joe Donnelly has become law.

The bill, which provides a $500 deduction for individual income tax filers who also pay property taxes, was signed into law on July 30. An estimated one million Hoosiers will be eligible for the deduction, according to a statement released by the Democrat’s congressional office this month.

The legislation was included in the comprehensive housing package, passed last month to help homeowners facing possible foreclosure.

Normally not a campaign point in U.S. congressional elections, the Donnelly campaign said property taxes were an important issue.

“Rising property taxes are hurting Hoosier families, especially those on fixed incomes,” Donnelly campaign manager Andrew Lattanner said in an e-mail statement. “While property taxes are ultimately set by the state and localities, Joe believes that Congress has a responsibility to do what it can to help ease the burden on working families.”

Donnelly’s opponent, Republican challenger Luke Puckett, said the bill was a “positive development” but didn’t fully address the cause of recent economic struggles.

“As Indiana's 2nd Congressional District continues to see record job losses caused by the energy crisis, a comprehensive plan to revitalize the economy and create more jobs must include a plan to lower energy prices,” Puckett said in an e-mail statement. “By solving the energy crisis, we can jump-start the economy and create more jobs so people can once again meet their mortgage payments and live in financial security.”

While the deduction is currently available only for the 2008 tax year, Donnelly has said he will work to make the relief extend into the future.

Brian Rosenthal can be reached at (574) 732-5148, or via e-mail at Brian.Rosenthal@pharostribune.com