Housing is at the center of our lives—for all of our lives. Housing is usually the single largest item in your overall budget and the item which can totally scramble the rest of the budget if the amount required to secure or retain housing takes an excessive amount of one’s monthly income. Most conservative lenders feel that allocating between 25%-30% for your monthly housing expense will allow a homeowner to meet other obligations without too much strain. Unfortunately, even when consumers have been conservative in purchasing their homes and stayed below the 30% threshold, circumstances beyond their control may cause their house payment to increase dramatically.

The rule of “unintended consequences” is a rather simple rule which often has far reaching impact. Basically, the rule addresses the phenomena when one action is taken there will be resulting and quite possibly negative consequences. Hoosiers have been facing the “unintended consequence” in several ways related to housing in the last few years. Central Indiana residents were holding their heads in disbelief when new tax assessments arrived in mailboxes last summer. Northern Indiana residents received their new tax assessments recently and are still in shock over bills which increased by 2, 5 up to 10 times as much as they were previously. I spoke with the executive director of a social services agency in East Chicago yesterday who said a homeowner had called him for help with a bill 20 times the previous amount. 20 times. In an attempt to spread the tax burden more evenly the law was implemented in a way which resulted in drastically higher and totally unaffordable bills for many seniors who are retired and/or on fixed incomes. These consumers, many who have lived in their homes for many years, CANNOT AFFORD SUCH A HUGE, one step tax increase. This article is not a criticism of the law but does suggest that a fazed in change might have worked better. Legislative change (fine-tuning if you will) has been discussed but increased taxes are probably a necessity due to the budgetary needs of our state.

In the MEANTIME, no matter where you live in the state, take the initiative and be sure that you are receiving the benefit of all the exemptions to which you are entitled in order to reduce your tax obligation. There are 5 exemptions: mortgage, homestead, veteran, old age and disability. These exemptions are not automatic; you must file for them yourself unless your title company handled that when you closed on your home. When you re-finance, you must file the exemptions again—they were cleared off your record when the mortgage was released.

Here’s the deal. In Marion county the exemptions can be filed in the Auditor’s office, located in the City-County building, 8^th floor. There is no charge but you should call ahead to see what documentation is needed if you are filing for either the Veterans, age or disability exemption.

You must own the house by March 1^st and should file by May 10^th. The exemptions are not retroactive. Call today—317 327-4646. You may file anytime during the year to be sure the exemptions will be in place next year if you miss the deadline. Small step with BIG RESULTS! Please file today!!

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