Variations in Receipt of Benefit
Benefit Varies with Income
The benefit is a refundable credit to income tax bill for property taxes accrued or rent, or both, paid in that taxable year. The benefit is determined by 21 income brackets with maximum relief ranging from $502 if income is under $1,751 (living alone) or $2,501 (living with spouse/dependents), to $56 if income is $3,651-$3,750 (living alone) or $5,351-$5,500 (living with spouse or dependents). The maximum benefit cannot exceed the property tax bill or the designated rent. The landlord designates the percentage of rent attributable to property taxes.
How is Benefit Disbursed
Credit to the income tax bill
Eligible Property Type
Characteristics of Eligible Property
Only homesteads are eligible for this benefit. "Homestead" means the principal dwelling, whether owned or rented by the claimant. "Homestead" may also include a mobile home and the land upon which it is located.
Description of Eligibility Criteria
The resident must have attained the age of 65 prior to or during the taxable year or must be a recipient of public monies under the Social Security Act. The individual must have paid either property taxes or rent during the taxable year. The income ceilings are $3,751 for individuals and $5,501 for married couples or those that live with others regardless of marital status.
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 provides the benefit directly to the taxpayer through the income tax.