II 110th CONGRESS 1st Session S. 2068 IN THE SENATE OF THE UNITED STATES September 19, 2007 Mr. Bayh introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to provide an additional standard deduction for real property taxes for nonitemizers.

1.

Short title

This Act may be cited as the Homeowner Tax Fairness Act of 2007.

2.

Additional standard deduction for real property taxes for nonitemizers

(a)

In general

Section 63(c)(1) (defining standard deduction) is amended by striking and at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting , and, and by adding at the end the following new subparagraph: (C)the real property tax deduction. . (b)

Definition

Section 63(c) is amended by adding at the end the following new paragraph: (8)

Real property tax deduction

For purposes of paragraph (1), the real property tax deduction is equal to the amount of State and local real property taxes (within the meaning of section 164) paid or accrued by the taxpayer during the taxable year. . (c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2006.