The legislative session at the NC General Assembly is heating up as members begin budget negotiations!
The final version of the budget will set spending and tax priorities for the next two years. The two versions differ on their treatment of the important mortgage interest tax deduction (MID). Currently, the state caps the deduction for mortgage interest and property taxes at $20,000, regardless of filing status. The House and Senate differ on how they adjust this cap.
- The Senate increases the deduction to $22,000 for married couples filing jointly. However, the deduction would be decreased to $11,000 for single filers.
- The House legislation would simply increase the deduction to $22,000 regardless of filing status.
- Both versions of the budget also increase the standard deduction for all filers, so changes in the law will have varying impact on taxpayers.
In recent years, there have been increasing attacks on the MID, which represents a tremendous economic benefit for families across the state and country. Thankfully, it seems that the legislature is actually on track to increase the deduction for most filers.
One other tidbit to keep in mind during this heated political climate:
- The United States Supreme Court has upheld a lower court ruling that found 28 legislative districts to be unconstitutional on the basis of illegal racial gerrymandering. While these districts will have to be redrawn, the justices did not affirm the lower courts decision to insist that North Carolina hold special elections in 2017. For more information on this important decision click here.
As always, we will keep you updated on the MID and other homeowner issues as we find out more. With your help, we will continue to advocate for property rights at the General Assembly!