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Need Help With Property Tax Credit And Homestead/Special Assessments Credit For Senior Citizens Or Disabled Persons?

What Are Property Tax Credits?

  • Property tax credits will reduce a homeowner's taxable value according to the following schedule:

If income is:
Taxable value
is reduced by:
Maximum
reduction:
       $ 0 - 22,000 100% $5,625
22,001 - 26,000   80% $4,500
26,001 - 30,000  60% $3,375
30,001 - 34,000 40% $2,250
34,001 - 38,000 20% $1,125
38,001 - 42,000 10% $   563
  • The property tax credit is subject to adjustment, equalization and abatement in the same manner as other real property assessments.

What Are The Eligibility Requirements For Property Tax Credits?

Property Tax Credits Are Available to Homeowners Who:

  • Are 65 years old or permanently and totally disabled. For a husband and wife who are living together, only one can apply for the credit. Only the spouse applying for the refund needs to be 65 years of age.
  • Reside on the property for which the credit is claimed and have a legal interest in the property.
  • Are temporarily absent because of a confinement in a hospital, nursing home, or other care facility, and the property was not rented out to others during this period.
  • Have income, plus the income of a spouse and any dependents for the calendar year preceding the assessment date, which does not exceed $42,000.
  • Have assets of less than $500,000 including the market value of the homestead and the value of any assets gifted or otherwise divested within the last three years.

How Do I Determine My Income?

You must consider income from all sources including, but not limited to: county, state, or federal public assistance benefits; social security benefits, or other retirement benefits.

  • Life insurance death proceeds paid to a surviving spouse or dependent, worker's compensation, veteran's disability, lump sum payments for personal injury settlement, or lump sum payments for Social Security Disability are not included as income under this act.
  • Medical expenses are deductible from income if not compensated by insurance or other form of compensation.

How Do I Apply For Property Tax Credits?

  • If you believe you are eligible for a property tax credit, call your local director of tax equalization office for an application. The application should be filed by February 1 in the year your property is assessed and for which you request a property tax credit.

What Are Homestead Credits For Special Assessments?

  • The Special Assessments Tax Credit helps elderly or disabled homeowners who cannot afford to pay their special assessments.
  • The Special Assessments Tax Credit does not eliminate or forgive taxes owed against the property, but it does defer them.
  • Any elderly or disabled person in North Dakota who has qualified for the Property Tax Credit for Senior Citizens or Disabled Persons may choose to also qualify for an additional special assessments credit.
  • The total amount of credits allowed for any one property must not exceed $6,000, excluding any interest charged.
  • If you decided to apply for the Homestead Credit for Special Assessments, you should be aware that the state will have a lien against the property.

This lien will remain until it is paid. Interest of 9% per year will be added. The lien and the interest must be paid before title to the property is transferred to anyone, other than a surviving spouse.

How Do I Apply For Homestead Special Assessment Credit?

  • Application for the Homestead Special Assessment Credit can be obtained from your County Auditor.
  • The application must be filed with your County Auditor on or before February 1 of the year in which the assessment becomes payable.

DISCLAIMER: This information is not legal advice. If you have a legal problem, you should talk to a lawyer and ask for advice about your options.

May 2016
 
N.D. Cent. Code § 57-02-08.1, 57-02-08.3
Published in conjunction with Department of Aging Services -Title III.