What Happens to Business and Agricultural Taxpayers?
In 2007 commercial, industrial and utility businesses are expected to see tax bill reductions. Trending appears to be increasing residential property assessments substantially more than business property assessments. Trending does not affect personal property, which is almost entirely business equipment. And property taxes on business inventories are being eliminated in 51 counties. All three of these factors decrease the share of business property in the tax base, and this explains the expected reductions in business tax bills. The homestead credit rebate adopted for 2007 does not affect business, because only homeowners are eligible for this relief. Business tax bills in 2008 were expected to change very little from 2007. The usual increases in local property tax levies would have been offset by the drop in the homestead deduction from $45,000 to $35,000. More homestead property would be taxable, so taxes would shift away from business property. The General Assembly decided not to re
