Homeowner Requirements:
1. 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.
2. For a husband and wife who are living together, only one may apply. Only the spouse applying for the credit need be 65 years of age or older.
3. You must reside on and have an interest in the property for which the credit is claimed.
4. Your income, plus the income of your spouse and any dependents, may not exceed $26,000 for the calendar year preceding the assessment date ( February 1). You must consider income from all sources, which includes but is not limited to social security benefits, pensions, salaries, Experience Works, TANF, alimony, unemployment benefits, dividends, interest, net gains from the sale of property, net rental income and net profit from any business, including ranching and farming.
5. Payment NOT considered income under this act 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, Foster Grandparents Program, Retired Senior Volunteer Program(RSVP), Senior Companion Program and Vista Program.
6. Medical expenses actually paid during the year are deductible from income if not compensated for by insurance or otherwise.
7. Your assets may not exceed $75,000, including the value of any assets gifted or otherwise divested within the last three years, excluding the first unencumbered $100,000 of market value of your homestead.
8. The homestead credit will reduce the homeowner's taxable value according to the following schedule:
If you income is Taxable value is reduced by Maximum
$ 0 - 18,000 100% $4,500
18,001-20,000 80% 3,600
20,001-22,000 60% 2,700
22,001-24,000 40% 1,800
24,001-26,000 20% 900
9. The property tax credit is subject to adjustment, equalization and abatement in the same manner as other real property assessments.
10. 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 the credit is requested.
11. In the event of the applicant's death, all benefits terminate at the end of the taxable year.
12. No person shall qualify to receive the property tax credit if the homestead is rented while the owner is temporarily absent or the homestead is a farm structure which is exempt from taxation.
Disabled Person Requirements:
1. You must be permanently and totally disabled person.
2. 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.
3. You may be either a homeowner or renter.
4. There is no age requirement for the permanently and totally disabled applicant.
5. A disabled homeowner must meet the same requirements, except for age, as a senior citizen homeowner (see the section on "Homeowner Requirements").
Eligibility Requirements:
You may be eligible for North Dakota's Homestead Credit Program if you are:
65 years of age or older
or
Permanently and totally disabled
Qualified homeowners receive a credit to reduce property taxes on their home and qualified renters receive a partial refund of their rent.
Renter Requirements:
1. Renters must meet the same income requirements as homeowners. There is no asset limitation for renters. You also have to meet the age or disabled requirements.
2. No refund may be made to a person who pays rent or fees for any living quarters, including nursing homes, that are exempt from property tazation and for which payment inlieu of property taxes is not made.
3. Heat, water, lights, telephone or funiture costs may not be considered as part of your rent costs. If your landlord pays for these items, you must deduct the cost of these items from your rent when you apply for a refund.
4. In order for you to receive a refund for part of the rent you pay, your annual rent payments must use up a certain percentage of your income. Here is how the formula works:
When 20% of your annual rent exceeds 4% of your income, you receive a refund for the overpayment of rent. Example: A renter pays $450 per month in rent ($5,400 per year), and the renter's income is $18,000.00.
20% of $5,400 is $1,080
4% of $18,000 is $720
Because $1,080 is $360 greater than $720, the renter is entitled to a refund of $360.
5. A refund may not exceed $400.
6. If you believe you are eligible, file an application with the Office of State Tax Commissioner before June 1 following the year for which the refund is claimed. Extensions of time may be allowed for good cause.
Application Process for Homestead Credit or Rent Refund:
1. Contact your local assessor or county director of tax equalization for further information and the proper apllication form. You may also call the Office of State Tax Commissioner for more information or an application:
-
328.3127 (Bismarck-Mandan area)
-
1.877.328.7088, option 6 (Toll-free)
-
1.800.366.6888 Hearing/Speech Impaired (TTY Relay North Dakota)
2. Homeowners must file an application for a property tax credit with their local assessor or county director of tax equalization.
3. Renters must file an application for a refund with the Office of State Tax Commissioner before June 1 following the year for which the refund is claimed. Applications must be sent to: Office of State Tax Commissioner, 600 E. Boulevard Ave., Dept 127, Bismarck, ND 58505-0599.
