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-five or older or those who are permanently and totally disabled. The bill introduces new income thresholds based on a percentage of the federal poverty guidelines instead of a fixed dollar amount. Specifically, it establishes that individuals with an income not exceeding three hundred twenty-five percent of the federal poverty guidelines will receive a full reduction of the taxable valuation of their homestead, capped at thirteen thousand five hundred dollars. For those with incomes exceeding this threshold but not surpassing six hundred percent of the federal poverty guidelines, a fifty percent reduction is available, capped at six thousand seven hundred fifty dollars.

Additionally, the bill clarifies that the exemption remains valid even if the individual is temporarily absent from their homestead due to confinement in a care facility, provided 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 related can claim a percentage of the exemption based on their ownership interest. The bill requires individuals claiming the exemption to submit a verified statement of facts regarding their eligibility, which will be treated as confidential. The changes outlined in this bill will take effect for taxable years beginning after December 31, 2024.

Statutes affected:
INTRODUCED: 57-02-08.1