Property tax auto payment proposal sent to governor

Legislation would allow counties to offer automatic bank deductions for property tax payments

INDIANAPOLIS, IN  – The Senate gave final legislative approval today to a measure that could allow homeowners to pay their property taxes through an automatic deduction from a checking account or any other method of installment payment. State Senator Tim Lanane (D-Anderson), a co-author of the legislation, said the program would be voluntary for taxpayers and available based on county-by-county approval. The Senate voted 43-0 to send Senate Enrolled Act 208 to the governor.

“The constant flow of revenue will help counties avoid the necessity of year-end borrowing, saving taxpayer money that would be paid out in interest for those loans,” Lanane said. “For those taxpayers who do not have escrow accounts to manage their property tax payments, this program will help simplify the process.”

If approved by a county, the voluntary program would allow homeowners to pay property taxes by automatic deduction from a checking account, a system increasingly used by many individuals to pay other monthly bills. It would also allow the taxpayer to pay in regular installments by check.

Any delay in anticipated revenue, including property taxes, can force local government units to cover operating expenses through short-term loans, typically through the Indiana Bond Bank.

For more information on Senator Lanane, his legislative agenda or other State Senate business call 1-800-382-9467 or visit www.senatedemocrats.IN.gov.

Source: Senate Democrats Press Release