Tax Commissioner Cory Fong says changes made by the 2013 Legislature will mean more senior citizens and disabled people will be able to qualify for the Homestead Tax credit.
It’s a program that reduces property tax for those who qualify. Under it, a senior citizen or disabled person who makes less than $22,000 a year can get a 100 percent property tax exemption – and it’s a sliding scale from there to $42,000. Fong says in addition, the “asset test” has been increased – from $75,000 to $500,000.
"As property values have increased across the state, the old $75,000 asset test was simply out of date," said Fong. "How many houses across the state are more than $75,000? The vast majority."
Fong says that asset test was the greatest barrier for eligibility.
Those comments were echoed by Josh Askvig of AARP.
"What we heard prior to this expansion was, 'I meet the income requirements, but when you add in the asset test, that's where my house bumps me over," said Askvig.
Fong says his Department will be launching a campaign to get this message to people who could potentially qualify for further property tax breaks. And Fong and Askvig say people who have been denied Homestead credits in the past should try again.
