MOUNT VERNON — Beginning Jan. 1, 2014, the Homestead Exemption program will change. The change was part of the new state budget bill passed this summer.
Currently, anyone 65 or older or on full disability qualifies for the 25 percent exemption on property taxes on their principle residence, explained Knox County Auditor Jonette Curry. After Jan. 1, new applicants will have to pass a means test, which in the first year will be $30,400. Make more than that, and you don’t qualify.
The exemption is calculated based on the taxable value of the home. On a $100,000 home, the taxable value is $35,000. Twenty-five percent of that is $8,750, so the taxable value is $26,250.
Homeowners who currently have Homestead Exemptions are “grandfathered,” which means they will continue to have the exemption even if they don’t qualify under the means test. The maximum income for qualification will be adjusted for inflation each year.
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