Variations in Receipt of Benefit
Benefit Varies with Income
Minimum Tax Amount Must be Paid
Other Variation in Receipt of Benefits
The benefit is 50% of the property taxes in excess of the threshold amount. The benefit is determined by sliding scale of relief with 7 brackets and thresholds ranging from 3.5% if income is under $3,000 to 6.5% if income is $14,001 to 18,000. For seniors, the maximum benefit ranges from $375 if income is under $1,000 to $86 if income is $17,001 to $18,000. For claimants under 65, maximum benefit ranges from $75 if income under $1,000 to $41 if income $17,000-$18,000. Benefits are disbursed as a credit to the income tax, or as a direct rebate if the benefit exceeds the income tax liability. Maximum property value considered is $85,000 (includes all real estate owned).
How is Benefit Disbursed
Credit to the property tax bill
Eligible Property Type
Characteristics of Eligible Property
Only residential property is eligible for this program.
Description of Eligibility Criteria
Homeowners or spouses must have paid real property taxes. Any rent received for nonresidential use of residence must have been 20% or less of the total rent received. The average monthly rent paid by household must be $450 or less, not counting charges for heat, gas, electricity, furnishings, or board. Income for individuals both over and under 65 years of age cannot exceed $18,000.
Local Option in Adoption of Program
Local government is unable to exercise an option
Local Option Regarding Program Features
No local option regarding program features
State Funding for Local Tax Loss
State reimburses all of the local government tax loss
Description of State Funding for Tax Loss
The state disburses benefits directly to the claimant through an income tax credit or direct rebate if the benefit exceeds income tax liability.
The state received 260,410 claims, costing $26,824,000.
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