The Daily News

In North Dakota there are people who own property and who, because of their age or disability, are unable to generate a livable income. These individuals are still required to pay taxes on their property.

To help relieve this burden, the Homestead Tax Credit (SB 2402) was revised in 2009 by Gov. John Hoeven and State Tax Commissioner Cory Fong to further reduce the property taxes on North Dakota taxpayers' primary residences. The revisions increased the maximum qualifying income to $26,000, increased the maximum homestead value that may be exempted to $100,000, which is a $4,500 taxable value. It also increased the maximum assets to $75,000, which excludes the first $100,000 unencumbered value of the homestead.

"These changes have made a difference in the number of individuals that will qualify (for the credit)," said Wahpeton City Assessor Carla Broadland.

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The median real estate property tax paid for housing units in Wahpeton in 2000 was 2 percent, and 1.8 percent in North Dakota. This might seem small to some, but if a property has an assessed value as low as $75,000, a 2 percent tax on it equals $1,400 yearly. For someone earning less than $26,000 a year, this amount is substantial.

If a homeowner's income falls into the $24,000 to $26,000 range, the taxable value of the homestead is reduced by 20 percent, with the maximum reduction of $900. For those with an income between zero and $18,000, the reduced value is 100 percent, with a maximum reduction of $4,500, effectively eliminating a homeowner's tax obligation.

"That amount is then reimbursed by the state of North Dakota to the taxing districts, which is a win-win for the applicant and the taxing authorities," said Broadland.

As detailed in a readily available brochure released by Fong, to qualify for the credit "you must be 65 years of age or older (unless you are permanently and totally disabled)."

According to the press release, to qualify for the credit, you must reside on and have an interest in the property for which the credit is claimed.

"This is a program that allows individuals that are on a limited income to remain in their homes," said Broadland. "It allows those who have been long term residents and taxpayers in good standing to continue to enjoy their home without financial worry."

There are other benefits, as well. City utility customers who receive the property tax credit can request that the city provide a loan for the cost of repair or replacement of their water sewer service lines. It automatically qualifies property owners for a reduced rate of $10.25 for their garbage service.

For more information on the Homestead Tax Credit, contact Broadland at (701)642-8449, or e-mail her at carlab@wahpeton.com. For more information on the credit, visit the Wahpeton Assessment Department page via the city of Wahpeton Web site at www.wahpeton.com.

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