This bill amends the homestead tax credit provisions in North Dakota's Century Code, specifically targeting individuals aged sixty-five or older or those who are permanently and totally disabled. The amendments introduce new income thresholds based on a percentage of the federal poverty guidelines, replacing the previous fixed income limits. For individuals whose income does not exceed three hundred twenty-five percent of the federal poverty guidelines, they are entitled to 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 emphasizes the confidentiality of income information submitted for the exemption and establishes that the exemption will end upon the death of the applicant. The effective date for these changes is set for taxable years beginning after December 31, 2024.

Statutes affected:
INTRODUCED: 57-02-08.1