CHAPTER 10-6B

PROPERTY TAX REDUCTION FROM MUNICIPAL TAXES FOR THE ELDERLY AND DISABLED

10-6B-1    Definition of terms.

10-6B-2    Adoption of chapter by governing board of municipality.

10-6B-3    Amount of reduction in income allowed for taxes paid.

10-6B-4    Requirements for reduction of real property taxes due on single family dwelling.

10-6B-5    Survival of right to file claim.

10-6B-6    Amount of reduction of real property taxes due for a single-member household.

10-6B-7    Amount of reduction of real property taxes due for a multiple-member household.

10-6B-7.1    Reduction of real property taxes due--Annual increase--Index factor.

10-6B-8    Eligibility of head of household for reduction--Requirements.

10-6B-9    Claims for reduction of real property taxes--Forms.

10-6B-10    Applicant not required to record on application amount claimed--Reduction computed by county auditor.

10-6B-11    Documentary evidence.

10-6B-12    Claim for reduction signed and delivered to county auditor.

10-6B-13    Reduction of taxes by county treasurer.

10-6B-14    Protest of denial of reduction--Hearing.

10-6B-15    Denial of reduction because of refund or freeze.

10-6B-1. Definition of terms.

Terms used in this chapter mean:

(1)    "Disabled," persons receiving or having qualified to receive monetary payments, pursuant to Title II, X, XIV, or XVI of the Social Security Act, as amended, and in effect on January 1, 1974, for all or part of the year for which a refund is claimed;

(2)    "Head of household," a married person, a single person, a widow or widower, or a divorced person;

(3)    "Household," the association of persons who live in the same dwelling, sharing its furnishings, facilities, and accommodations, but not including bona fide lessees, tenants, or roomers and boarders on contract;

(4)    "Household income," all income received by all persons of a household while members of the household;

(5)    "Income," the sum of adjusted gross income as defined in the United States Internal Revenue Code, as defined by § 10-1-47, and all nontaxable income, including the amount of capital gains excluded from adjusted gross income, alimony, support money, nontaxable strike benefits, cash, public assistance and relief, not including relief granted under this chapter, the gross amount of any pension or annuity, including Railroad Retirement Act benefits and veterans' disability pensions, all payments received under the federal social security and state reemployment assistance or unemployment insurance laws, nontaxable interest received from the federal government or any of its instrumentalities, workers' compensation, and the gross amount of loss of time insurance, but not including gifts from nongovernmental sources, food stamps, or surplus foods or other relief in kind provided by a public agency less real estate taxes payable on the applicant's principal residence for the year in which application is made;

(6)    "Single-family dwelling," a house, condominium apartment or manufactured home as defined in § 32-3-1 which is assessed and taxed as a separate unit including the platted lot upon which the structure is situated or one acre, whichever is less, and the garage, whether attached or unattached;

(7)    "Tax year" or "taxable year," the year in which real property is assessed and the taxes levied thereon.

Source: SL 1987, ch 86, § 1; SL 2008, ch 46, § 2; SL 2009, ch 39, § 7; SL 2010, ch 45, § 7; SL 2011, ch 48, § 7; SL 2012, ch 59, § 7; SL 2013, ch 42, § 7; SL 2014, ch 54, § 7; SL 2015, ch 62, § 7; SL 2016, ch 54, § 8; SL 2019, ch 216, § 25.

10-6B-2. Adoption of chapter by governing board of municipality.

The governing board of a municipality may, by resolution, adopt the provisions of this chapter. Only taxes levied by the municipal government that has enacted a resolution adopting this chapter may be reduced pursuant to this chapter.

Source: SL 1987, ch 86, § 2.

10-6B-3. Amount of reduction in income allowed for taxes paid.

The amount of the reduction in income allowed for taxes paid pursuant to subdivision 10-6B-1(5) shall be equal to the real property taxes paid on the principal residence of the claimant. If the residence is a single-family dwelling, then the amount of the reduction shall equal the taxes paid on the residence structure, platted lot upon which the structure is located or one acre, whichever is less, and the garage, whether attached or unattached. If the residence is not a single-family dwelling, then the reduction shall be equal to the amount of tax paid on or allocated to the structure and the platted lot upon which the structure is situated or one acre, whichever is less, used as a residence by the claimant including the garage, whether attached or unattached.

Source: SL 1987, ch 86, § 3.

10-6B-4. Requirements for reduction of real property taxes due on single family dwelling.

Any person making application under the provisions of this chapter is entitled to a reduction of the real property taxes due on his single family dwelling according to the schedule provided in §§ 10-6B-6 and 10-6B-7, provided the following conditions are met:

(1)    The head of a household is sixty-five years of age or older or is disabled, prior to January first of the year in which the real property is assessed and the taxes levied thereon;

(2)    The person claiming a reduction has owned, either in fee or by contract purchase, and has resided in the real property for which the reduction is claimed for at least five years;

(3)    A claim for reduction can only be made for a single family dwelling as defined in subdivision 10-6B-1(6).

Source: SL 1987, ch 86, § 4.

10-6B-5. Survival of right to file claim.

The right to file a claim under this chapter is personal to the claimant, and may not survive his death.

Source: SL 1987, ch 86, § 5.

10-6B-6. Amount of reduction of real property taxes due for a single-member household.

The amount of reduction of real property taxes due for a single-member household made pursuant to this chapter shall be according to the following schedule:

Source: SL 1987, ch 86, § 6; SL 1988, ch 96, § 6; SL 1992, ch 79; SL 2023, ch 29, § 15.

10-6B-7. Amount of reduction of real property taxes due for a multiple-member household.

The amount of reduction of real property taxes due for a multiple-member household made pursuant to this chapter is according to the following schedule:

Source: SL 1987, ch 86, § 7; SL 1988, ch 96, § 7; SL 2023, ch 29, § 16.

10-6B-7.1. Reduction of real property taxes due--Annual increase--Index factor.

Beginning on January 1, 2024, each household income value listed in the schedules in §§ 10-6B-6 and 10-6B-7 shall increase annually by the index factor. The index factor is the annual percentage change in the consumer price index for urban wage earners and clerical workers as computed by the Bureau of Labor Statistics of the United States Department of Labor for the year before the year immediately preceding the year of adjustment or the annual percentage change in federal social security payments for the preceding year, whichever is greater.

Source: SL 2023, ch 29, § 17.

10-6B-8. Eligibility of head of household for reduction--Requirements.

The head of household shall be eligible for a reduction computed pursuant to the schedule in § 10-6B-7 if each of the following conditions is satisfied:

(1)    The head of household is a widow or widower;

(2)    The dwelling upon which the reduction is claimed qualified for and received a reduction pursuant to § 10-6B-7 in the year immediately preceding the death of the deceased spouse;

(3)    The head of household has continued to live in the same dwelling;

(4)    The head of household has not remarried.

Source: SL 1987, ch 86, § 8.

10-6B-9. Claims for reduction of real property taxes--Forms.

Claims for a reduction of real property taxes under this chapter shall be made annually on or before April first upon forms prescribed by the secretary of revenue. Forms shall be made available to county treasurers who shall, upon request of a claimant, assist the claimant in completing the application.

Source: SL 1987, ch 86, § 9; SL 1994, ch 74, § 5; SL 2003, ch 272 (Ex. Ord. 03-1), § 82; SL 2011, ch 1 (Ex. Ord. 11-1), § 161, eff. Apr. 12, 2011.

10-6B-10. Applicant not required to record on application amount claimed--Reduction computed by county auditor.

The applicant, at his election, is not required to record on his application the amount claimed by him. The reduction allowable to persons making the election shall be computed by the county auditor.

Source: SL 1987, ch 86, § 10.

10-6B-11. Documentary evidence.

Any application for a reduction shall include such documentary evidence as the county treasurer deems necessary to assure validity of the application.

Source: SL 1987, ch 86, § 11.

10-6B-12. Claim for reduction signed and delivered to county auditor.

Any claim for a reduction shall be signed and delivered to the county auditor or his deputy in the county where the real property is located.

Source: SL 1987, ch 86, § 12.

10-6B-13. Reduction of taxes by county treasurer.

The county treasurer shall reduce the taxes due and payable in the year next succeeding the year of application from any person eligible for a reduction under the provisions of this chapter.

Source: SL 1987, ch 86, § 13.

10-6B-14. Protest of denial of reduction--Hearing.

Any person aggrieved by the denial by the county treasurer in whole or in part of reduction claimed under this chapter, may within thirty days after receiving notice of such denial, demand and shall be entitled to a hearing, upon notice, before the county treasurer on the question.

Source: SL 1987, ch 86, § 14.

10-6B-15. Denial of reduction because of refund or freeze.

No person who receives a property tax refund under chapter 10-18A or a retail sales and service tax refund under chapter 10-45A or a real property tax assessment freeze under chapter 10-6A may be denied a property tax reduction under this chapter because of such refund or freeze.

Source: SL 1987, ch 86, § 15.