Friday, March 17, 2017

Information Posted on Property Tax Credit for Long-time Homeowners

Visit the Department of Finance's Web site to get more information on Bill 42-16 that creates a new property tax credit for residents who are at least 65 years old and who have either lived in the same home for at least 40 years or are retired veterans of the U.S. military. The application form will be available later this month.

2 comments:

Local Tax Expert said...
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Local Tax Expert said...

A low or moderate income homeowner who qualifies for both the homeowners tax credit and the long-time homeowners credit will have their homeowners tax credit reduced by double (yes 2x) of the long-time homeowners credit because of the way that the SDAT calculates the homeowners tax credit. In other words, the low or moderate income homeowner would actually have to pay more taxes if they applied for the long-time credit than if they did not apply for it. Therefore, homeowners who get the homeowners tax credit should NOT apply for the long-time homeowners credit.

HB633, sponsored by Delegate Al Carr in 2017, would allow low and moderate income homeowners who receive the Homeowners Tax Credit to also receive the long-time homeowners credit, but HB633 did not get out of committee and therefore will not become law.