North Dakota property owners have this consolation when filing their state income tax paperwork: a break on their property taxes.
Taxpayers will get a break of 10 percent of what they paid on their 2006 property taxes, up to a maximum of $500 per person or $1,000 for married couples filing jointly.
The roundabout tax relief plan, courtesy of the 2007 North Dakota Legislature, is surfacing on taxpayers' radar screens as counties mail out their yearly property tax statements.
"We think this is a perfect time to do some education," said Cory Fong, North Dakota's tax commissioner, who was in Fargo on Wednesday for a seminar for tax preparers on the new property tax relief, expected to total $115 million.
Property tax breaks will be available to those who don't have a state income tax liability - seniors on fixed incomes, for instance - through a certificate that is good for up to five years, and can be used to offset future taxes, Fong said.
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A few of the filing mechanics:
- A new state tax form, Schedule PT, will be needed for property tax relief.
- Taxpayers will need the total from their 2006 consolidated property tax statement, sent by the county.
- Property tax owners will find lines on their state income tax forms allowing them to claim the property tax credit.
The 10 percent property tax break applies to residential, agricultural and commercial property, all with the same caps: up to $500 for individuals; up to $1,000 for married couples filing jointly.
State tax officials have been coordinating with counties to smooth out the wrinkles, Fong said. So far, he added, things appear to be going smoothly, although there inevitably will be problems to solve.
"Every new program has its challenges," he said.
Bob Taylor, a tax preparer from Bismarck who attended the seminar Wednesday in Fargo, said the credit does not seem complicated.
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"Everything appears straightforward," he said, adding that help is available online. Taxpayers might be confused, because the credit is new. "We'll just educate them," he added.
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The Forum of Fargo-Moorhead and the Herald are Forum Communications Co. newspapers.
