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FOR IMMEDIATE RELEASE June 20, 2007
Release No. M-65-07
SENIORS AND OTHER TAXPAYERS URGED TO FILE FOR
LOW-INCOME PROPERTY TAX CREDIT
Bill 15 (2007), C.D. 2, increases the tax credit to homeowners where at least one titleholder is 75 years and older who would otherwise qualify for the tax credit. Currently, homeowners with a combined titleholders’ income of $50,000 or under are eligible for a real property tax credit equal to the amount by which their taxes calculated for the property exceed four percent of the combined titleholders’ income, provided certain requirements are met. For those titleholders 75 or older on or before June 30 preceding the tax year for which the credit is claimed, the percentage of the combined titleholders’ income is reduced to three percent.
For example, for a homeowner with a property tax bill of $3,000 and combined titleholders’ income of $50,000:
(a) If one of the titleholders is 75 years or older, they would receive a real property tax credit of $1,500 and would need to pay $1,500.
(b) If none of the titleholders is 75 years or older, they would receive a real property tax credit of $1,000 and would need to pay $2,000.
Bill 38 (2007), C.D. 1, simplifies the definition of “income” by eliminating certain non-taxable income to qualify for a low-income homeowner tax credit. Applicants must file their federal and state income tax returns, if required, prior to the application deadline. They must also submit a tax return transcript provided by the IRS, if a federal income tax return was filed.
Applications for the tax credit must be filed no later than October 1, 2007. For more information, please call 523-4856.
Edlyn Taniguchi, Treasury Division, 527-5673
|Monday, June 25, 2007|