§ 6066. Computation of property tax credit

(a) An eligible claimant who owned the homestead on April 1 of the year in which the claim is filed shall be entitled to a credit for the prior year's homestead property tax liability amount determined as follows:

(1)(A) For a claimant with household income of $90,000.00 or more:

(i) the statewide education tax rate, multiplied by the equalized value of the housesite in the taxable year;

(ii) minus (if less) the sum of:

(I) the income percentage of household income for the taxable year; plus

(II) the statewide education tax rate, multiplied by the equalized value of the housesite in the taxable year in excess of $225,000.00.

(B) For a claimant with household income of less than $90,000.00 but more than $47,000.00, the statewide education tax rate, multiplied by the equalized value of the housesite in the taxable year, minus (if less) the sum of:

(i) the income percentage of household income for the taxable year; plus

(ii) the statewide education tax rate, multiplied by the equalized value of the housesite in the taxable year in excess of $400,000.00.

(C) For a claimant whose household income does not exceed $47,000.00, the statewide education tax rate, multiplied by the equalized value of the housesite in the taxable year, minus the lesser of:

(i) the sum of the income percentage of household income for the taxable year plus the statewide education tax rate, multiplied by the equalized value of the housesite in the taxable year in excess of $400,000.00; or

(ii) the statewide education tax rate, multiplied by the equalized value of the housesite in the taxable year reduced by $15,000.00.

(2) "Income percentage" in this section means two percent, multiplied by the education income tax spending adjustment under subdivision 5401(13)(B) of this title for the property tax year which begins in the claim year for the municipality in which the homestead residence is located.

(3) A claimant whose household income does not exceed $47,000.00 shall also be entitled to an additional credit amount from the claimant's municipal taxes for the upcoming fiscal year that is equal to the amount by which the municipal property taxes for the municipal fiscal year that began in the taxable year upon the claimant's housesite exceeds a percentage of the claimant's household income for the taxable year as follows:

If household income (rounded to               then the taxpayer is entitled to

the nearest dollar) is:                          credit for the reduced property tax in

excess of this percent of that income:

$   0 - 9,999.00                                                     1.50

$10,000.00 - 47,000.00                                                     3.00

(4) A claimant whose household income does not exceed $47,000.00 shall also be entitled to an additional credit amount from the claimant's statewide education tax for the upcoming fiscal year that is equal to the amount by which the education property tax for the municipal fiscal year that began in the taxable year upon the claimant's housesite, reduced by the credit amount determined under subdivisions (1) and (2) of this subsection, exceeds a percentage of the claimant's household income for the taxable year as follows:

If household income (rounded to               then the taxpayer is entitled to

the nearest dollar) is:                          credit for the reduced property tax in

excess of this percent of that income:

$   0 - 9,999.00                                                     0.5

$10,000.00 - 24,999.00                                                   1.5

$25,000.00 - 47,000.00                                                   2.0

(5) In no event shall the credit provided for in subdivision (3) or (4) of this subsection exceed the amount of the reduced property tax. The credits under subdivision (4) of this subsection shall be calculated considering only the tax due on the first $400,000.00 in equalized housesite value.

(b) An eligible claimant who rented the homestead, whose household income does not exceed $47,000.00, and who submits a certificate of allocable rent shall be entitled to a credit against the claimant's tax liability under chapter 151 of this title equal to the amount by which the allocable rent upon the claimant's housesite exceeds a percentage of the claimant's household income for the taxable year as follows:

If household income (rounded to               then the taxpayer is entitled to

the nearest dollar) is:                                 credit for allocable rent paid in

excess of this percent of that income:

$   0 - 9,999.00                                                     2.0

$10,000.00 - 24,999.00                                                   4.5

$25,000.00 - 47,000.00                                                   5.0

In no event shall the credit exceed the amount of the allocable rent.

(c) To be eligible for an adjustment or credit under this chapter, the claimant:

(1) must have been domiciled in this State during the entire taxable year;

(2) may not be a person claimed as a dependent by any taxpayer under the federal Internal Revenue Code during the taxable year; and

(3) in the case of a renter, shall have rented property during the entire taxable year.

(d) The owner of a mobile home which is sited on a lot not owned by the homeowner may include an amount determined under subdivision 6061(7) of this title as allocable rent paid on the lot with the amount of property taxes paid by the homeowner on the home for the purpose of computation of credits under subdivision (a)(3) of this section, unless the homeowner has included in the claim an amount of property tax on common land under the provisions of subsection (e) of this section.

(e) Property taxes paid by a cooperative, not including a mobile home park cooperative, allocable to property used as a homestead, shall be attributable to the co-op member for the purpose of computing the property tax liability credit of the co-op member under this section. Property owned by a cooperative declared as a homestead may only include the homestead and a pro rata share of any common land owned or leased by the cooperative, not to exceed the two-acre housesite limitation. The share of the cooperative's assessed value attributable to the housesite shall be determined by the cooperative and specified annually in a notice to the co-op member. Property taxes paid by a mobile home park cooperative, allocable to property used as a housesite, shall be attributed to the owner of the housesite for the purpose of computing the property tax liability credit of the housesite owner under this section. Property owned by the mobile home park cooperative and declared as a housesite may only include common property of the cooperative contiguous with at least one mobile home lot in the park, not to exceed the two-acre housesite limitation. The share attributable to any mobile home lot shall be determined by the cooperative and specified in the cooperative agreement.

(f) [Repealed.]

(g) Notwithstanding subsection (d) of this section, if the land surrounding a homestead is owned by a nonprofit corporation or community land trust with tax exempt status under 26 U.S.C. § 501(c)(3), the homeowner may include an allocated amount as property tax paid on the land with the amount of property taxes paid by the homeowner on the home for the purposes of computation of the credit under this section. The allocated amount shall be determined by the nonprofit corporation or community land trust on a proportional basis. The nonprofit corporation or community land trust shall provide to that homeowner, by January 31, a certificate specifying the allocated amount. The certificate shall indicate the proportion of total property tax on that parcel which was assessed for municipal property tax, for local share property tax, and for statewide property tax.

(h) State property tax reduction incentive. A homestead owner shall be entitled to an additional property tax credit amount equal to one percent of the amount of income tax refund which the claimant elects to allocate to payment of homestead property tax under subdivision 6068 of this title.

(i) Adjustments under subsection (a) of this section shall be calculated without regard to any exemption under section 3802(11) of this title. (Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 1997, No. 71 (Adj. Sess.), § 16, eff. Jan. 1, 1998; 1999, No. 49, § 11, eff. June 2, 1999; 2001, No. 63, § 163c; 2001, No. 144 (Adj. Sess.), §§ 17, 22, eff. June 21, 2002; 2003, No. 68, § 10, eff. July 1, 2004; 2003, No. 70 (Adj. Sess.), §§ 47, 48; 2005, No. 38, §§ 25, 26; 2005, No. 185 (Adj. Sess.), §§ 2, 2a, eff. January 1, 2007; 2005, No. 185 (Adj. Sess.), § 12; 2007, No. 33, § 10, eff. May 18, 2007; 2007, No. 190 (Adj. Sess.), § 18, eff. Jan. 1, 2008; 2009, No. 160 (Adj. Sess.), §§ 25, 27; 2011, No. 45, § 13b, eff. Jan. 1, 2012;  2011, No. 143 (Adj. Sess.), § 31; 2013, No. 73, § 40, eff. June 5, 2013; 2013, No. 174 (Adj. Sess.), § 64, eff. Jan. 1, 2016; 2015, No. 46, §§ 29, 30; 2018, No. 11 (Sp. Sess.), § H.11, eff. Jan. 1, 2017; 2018, No. 11 (Sp. Sess.), § H.12, eff. July 1, 2019; 2019, No. 6, § 86, eff. April 22, 2019; 2019, No. 51, § 31, eff. June 10, 2019; 2019, No. 51, § 27a, eff. July 2, 2019.)