Interest strong in new North Dakota property tax credit – INFORUM

North Dakota homeowners can now apply for up to $500 off their 2024 property taxes.

The new program, administered by the state Tax Commissioner's Office, is aimed at easing pressure on taxpayers as state governments enjoy unexpected budget surpluses.

If you own a home in North Dakota and live there most of the time, you probably qualify.

All you need to do is show your ID and your home parcel number. If approved, this credit will reduce his bill for the 2024 tax year.

If you are unable to live in your home for health reasons, for example if you are receiving care in a rehabilitation center or nursing home, you can still apply as long as you do not rent your home to anyone else during your stay. Please leave.

To claim your discount, please fill out the online application by March 31st.

The state began accepting applications this week. State Tax Commissioner Brian Kroshus said his office had already received more than 10,000 applications as of Tuesday afternoon, Jan. 2.

“Right now, the wait time is a few minutes, two to three minutes,” Kroshus said. “The phones are ringing, sure, but we're processing personnel efficiently. And I think the initial rush will subside.”

Kroshus said the agency included a flyer about the program in property tax statements sent to taxpayers in December. He also said he is trying to get the word out through social media ads and interviews with the press.

Housing property taxes are collected at the county level and support local governments and public schools.

The new tax credits will be state-funded and will not affect local tax revenues. Lawmakers set aside more than $100 million for the program in the 2023-2025 state budget.

This funding will only cover the 2024 tax year. If Congress wants to continue the program for a second year, lawmakers would need to include money for it in the 2025-2027 budget.

“They're going to have to at least talk about it in terms of securing that funding for the next two years, so to speak, for the 2025 tax year,” Kroshus said.

This is part of significant income and property tax cuts adopted by Congress during the 2023 session.

The policy is expected to cost the state more than $515 million and also expands existing property tax credits for elderly and disabled homeowners. The program, commonly referred to as the Homestead Credit, was previously available only to North Dakota residents making less than $42,000 a year. Lawmakers raised that cap to $70,000.

The revised program includes two different discount tiers. For households with an annual income of $40,000 or less, up to 100% of their property tax bill will be covered by this program, as long as the amount does not exceed $9,000. Meanwhile, households with annual incomes of $40,000 to $70,000 can reduce their property taxes by up to 50%, but not by more than $4,500.

Congress also removed a provision that disqualified households with assets worth more than $500,000 from the program.

Homestead and homestead credits are not the only relief programs offered by the state. Other programs include grants for low-income renters, disabled veterans, and farm housing. For more information, please visit the tax office website.

This article was originally published on NorthDakotaMonitor.com.