Property Tax Relief Act of 2007

Property Tax Relief Act of 2007 - Amends the Internal Revenue Code to: (1) allow state and local real property taxes paid on a principal residence as a deduction from gross income (thus allowing taxpayers who do not itemize their tax deductions to claim such deduction); and (2) exclude such deduction from the calculation of alternative minimum taxable income for purposes of the alternative minimum tax on individuals.

[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3726 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3726

 To amend the Internal Revenue Code of 1986 to allow the deduction for 
  real property taxes on the principal residences to all individuals 
             whether or not they itemize other deductions.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 2, 2007

    Mr. Hill (for himself, Mr. Fossella, Mr. Burton of Indiana, Mr. 
  Donnelly, Mr. Ellsworth, Mrs. Gillibrand, Mr. Hall of New York, Mr. 
    Patrick J. Murphy of Pennsylvania, Mr. Pence, Ms. Berkley, Mr. 
Buchanan, Mr. Visclosky, and Mr. Kagen) introduced the following bill; 
         which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to allow the deduction for 
  real property taxes on the principal residences to all individuals 
             whether or not they itemize other deductions.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    The Act may be cited as the ``Property Tax Relief Act of 2007''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) Healthcare costs have grown on average 2.5 percentage 
        points faster than the United States gross domestic product 
        since 1970.
            (2) The Secretary of Energy estimates that energy costs 
        will continue to dramatically rise for at least the next 3 
        years.
            (3) The national average for property taxes is over $900, 
        placing a large burden on middle class families.
            (4) Indiana property owners pay 3.4 percent of their income 
        in property taxes, which is the 14th highest percentage in the 
        Nation.
            (5) Indiana property taxes are predicted to jump another 25 
        percent in 2008.

SEC. 3. DEDUCTION FOR REAL PROPERTY TAXES ON PRINCIPAL RESIDENCES 
              ALLOWED TO ALL INDIVIDUALS WHETHER OR NOT THEY ITEMIZE 
              OTHER DEDUCTIONS.

    (a) In General.--Subsection (a) of section 62 of the Internal 
Revenue Code of 1986 (defining adjusted gross income) is amended by 
inserting after paragraph (21) the following new paragraph:
            ``(22) Principal residence real property taxes.--The 
        deduction allowed by section 164(a)(1) for State and local real 
        property taxes on any residence allocable to the period during 
        the taxable year that the residence is owned and used by the 
        taxpayer as the taxpayer's principal residence (within the 
        meaning of section 121).''.
    (b) No Effect on Computation of Alternative Minimum Taxable 
Income.--The last sentence of subparagraph (A) of section 56(b)(1) of 
such Code is amended by inserting before the period ``(other than the 
amount allowable under section 62(a)(22))''.
    (c) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.
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