Many More Seniors, Disabled Persons will Qualify for Expanded Homestead Property Tax Credit Program

More North Dakotans 65 and older and homeowners of any age with a disability are now eligible for the Homestead Property Tax Credit because of a major expansion approved by the 2013 North Dakota Legislature.

Under the program, qualified homeowners receive a credit to reduce property taxes on their home. Qualified renters receive a partial refund of their rent. The maximum reduction for homeowners ranges from $450 to $4,500 depending upon income. The maximum refund for renters is $400.

Income brackets have been raised so that individuals with incomes up to $22,000 (previously $18,000) qualify for up to 100 percent of relief. Those with incomes up to $42,000 (previously $26,000) will qualify for graduated relief. The Homestead Tax Credit raises the asset test to $500,000, including home value.

A property tax credit for disabled veterans of any age was also expanded. The disabled veteran’s income and assets do not affect eligibility for the credit. There is more information on the property tax credit for disabled veterans here. You can view the application here.

Homestead Tax Credit Homeowner Requirements:

• You must be 65 years of age or older (unless you are permanently and totally disabled) in the year for which your application is made.
• For a husband and wife who are living together, only one may apply for the credit. Only the spouse applying for the credit need be 65 years of age or older.
• You must reside on and have an interest in the property for which the credit is claimed.
• Your income, plus the income of your spouse and any dependents, may not exceed $42,000 for the calendar year preceding the assessment date. You must consider income from all sources, which includes but is not limited to Social Security benefits, pensions, salaries, dividends, interest, net gains from the sale of property, net rental income and net profit from any business, including ranching and farming.
• Payments not considered income include gifts, inheritances, life insurance proceeds, Social Security lump sum death payments, workforce safety and insurance payments, insurance policy proceeds for illness, injury, or casualty losses to property, child support, federal fuel assistance, renter’s refund payments, food stamps, veteran’s disability payments, payments for foster care of a qualifying child or adult or for difficult care.
• Medical expenses actually paid during the year are deductible from income if not compensated for by insurance or otherwise.
• Your assets may not exceed $500,000, including the market value of your homestead and the value of any assets gifted or otherwise divested within the last three years.

 

Disabled Person Requirements:

• You must be permanently and totally disabled.
• Proof of total disability must be established with a certificate from a licensed physician, or a written determination of disability from the Social Security Administration or any federal or state agency that has authority to certify an individual’s disability.
• You may be either a homeowner or a renter.
• There is no age requirement.
• A disabled homeowner or renter must meet the same requirements, except for age, as a senior citizen homeowner or renter.

If you believe you are eligible, file an application with your local assessor or county director of tax equalization by February 1 (or as soon thereafter as possible) in the year in which your property is assessed and for which the credit is requested.

For renters, applications must be filed with the state Tax Department before June 1 following the year for which the refund is claimed.

Renters must meet the same income requirements as homeowners; however, there is no asset limitation for renters.

The maximum renter’s refund is $400.

For more information on any of these property tax credits, call the state Tax Department at 701-328-3127 or toll-free 1-877-328-7088 (option 6).