This bill amends subsection 1 of section 57-02-08.1 of the North Dakota Century Code, which pertains to the homestead tax credit for individuals aged sixty-two or older or those who are permanently and totally disabled. The bill updates the age requirement from sixty-five to sixty-two and modifies the income thresholds for eligibility. Specifically, it raises the income limit for a full exemption from forty thousand dollars to seventy thousand dollars, and for a partial exemption, it increases the upper limit from seventy thousand dollars to one hundred thousand dollars. The maximum reduction amounts for the taxable valuation of the homestead are also specified, with a full exemption allowing for a reduction of up to nine thousand dollars and a partial exemption allowing for a reduction of up to four thousand five hundred dollars.

Additionally, the bill clarifies that the exemption remains applicable even if the individual does not reside in the homestead due to confinement in a care facility, as long as the property is not rented out. It also stipulates that only one exemption can be claimed by individuals residing together as spouses or dependents, while co-owners who are not spouses or dependents can claim a percentage of the exemption based on their ownership interest. The bill includes provisions for confidentiality regarding income information and establishes that the exemption will terminate at the end of the taxable year of the applicant's death. The effective date for these changes is set for taxable years beginning after December 31, 2024.

Statutes affected:
INTRODUCED: 57-02-08.1