AB 892

This bill creates a refundable individual income tax credit for claimants who

are at least 70 and one-half years old and whose federal adjusted gross income is no

more than 2.5 times the federal poverty level in the year to which the claim relates.

The credit amount is calculated as the difference between the claimant's school

district portion of the property tax assessment on his or her principal dwelling in the

year to which the claim relates, and the claimant's school district portion of the

property tax assessment on that same dwelling in the previous year. To be able to

claim the credit, the claimant must have paid the property taxes that are the basis

of the calculation.

Because the credit is refundable, if the amount of the claim exceeds the

claimant's tax liability, the excess amount is refunded to the claimant by check. The

credit may not be claimed by part-year and nonresidents of this state. Under the bill,

no credit may be claimed for any increase in property taxes due to improvements the

claimant makes to the principal dwelling.