Changes to Homestead Property Tax and Disabled Veterans Credits

The Assessing Department is sharing legislative changes to the Homestead Property Tax Credit for senior citizens or disabled persons and Disabled Veterans Tax Credit.

Homestead Property Tax Credit. Beginning in 2023, the applicant’s total income, plus the income of the spouse and any dependents for the calendar year preceding the assessment date may not exceed $70,000 after deduction of eligible medical expenses. There is no asset test to qualify. Previously, the total income amount was capped at $42,000 and assets could not exceed $500,000.

To qualify for the Homestead Property Tax Credit the applicant must be 65 years of age or older in the year the application is made or permanently and totally disabled. The applicant must also reside in and have an ownership interest in the property for which the credit is claimed.

Disabled Veteran Tax Credit. The applicant must be a disabled veteran of the United States armed forces with an armed forces service-connected disability of 50% or greater. The veteran must have been discharged under honorable conditions or be retired from the armed forces of the United States. The percentage of credit allowed is equal to the percentage of the disabled veteran’s disability compensation rating for service-connected disabilities as certified by the Department of Veterans Affairs (VA) for the purpose of applying for a property tax credit. The surviving spouse of a deceased qualifying veteran is eligible for a credit applied against the first $8,100 of taxable valuation equal to the deceased veteran’s percentage of disability compensation rating as certified by the VA. A surviving spouse receiving VA dependency and indemnity compensation receives a 100% credit. Income and assets do not affect eligibility.

Assessor Kimberly Markley explains property tax credits differ from exemptions because credits are reimbursed to the City by the State of North Dakota. Exemptions, such as the blind exemption and wheelchair exemption, are not reimbursed by the State.

Guidelines, applications and more information are available at cityofmandan.com/assessing. Please contact the Assessing Department at 701-667-3232 or assessing@cityofmandan.com with questions.