AB 235

This bill creates a refundable individual income tax credit for an increase in the

property taxes that a person who has reached age 65 pays for a primary residence

owned in this state. The credit amount is calculated as the difference between the

property taxes levied on the claimant's primary residence in the year to which the

claim relates and those property taxes in the base year.

Under the bill, the “base year” is the most recent of either of the following years:

1) if a claimant has not moved to a different primary residence after first claiming

the credit, the year immediately before the year in which the claimant first claimed

the credit or 2) if a claimant moves to a different primary residence after first

claiming the credit, the first year for which property taxes are levied on that different

primary residence for the claimant. To claim the credit, the claimant must have paid

the property taxes that are the basis of the calculation. The maximum credit for a

taxable year allowed under the bill is $500.

Because the credit is refundable, if the amount of the claim for which a claimant

is eligible exceeds the claimant's tax liability, the difference will be paid to the

claimant by check.