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. For benefits based on 2016 tax year, the benefit is determined by 21 income brackets with maximum relief ranging from $502 for income less than $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
To be eligible the resident must have attained the age of 65 prior to or during the taxable year or must receive supplemental security income (SSI) payments. The individual must have paid either property taxes or rent during the taxable year and been a resident of the state for the whole year, 2016 The maximum household income is $3,750 for individuals and $5,500 for married couples or, those that live with others regardless of marital status. Income is based on salary and wages and retirement income as well as income from business sources. Income does not include social security benefits or other government benefits, such as veteran's disability payments.
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.
[https://www.azdor.gov/Portals/0/ADOR-forms/TY2017/10500/140PTCBooklet.pdf Accessed 08/23/2018] View Archived Source
Arizona Booklet 140PTC: Property Tax Refund Credit (2017) Arizona Department of Revenue
[https://www.azdor.gov/Portals/0/ADOR-forms/TY2016/10500/140PTCBooklet.pdf Accessed on 04/12/2017]
View Archived Source