43-1072. Earned credit for property taxes;
residents sixty-five years of age or older; definitions
A. There shall be allowed to each resident a credit against the taxes imposed by
this title for a taxable year for property taxes accrued or rent, or both, paid in that
taxable year, in accordance with subsection B of this section, if all of the following
apply:
1. Such resident attained the age of sixty-five years prior to or during the
taxable year or such resident is a recipient of public monies under title 16 of the
social security act, as amended.
2. Such person paid either property taxes or rent during the taxable year.
3. Such person either:
(a) Did not live with a spouse or any other persons and had an income from all
sources in the taxable year of less than three thousand seven hundred fifty-one dollars.
(b) Lived with a spouse or one or more persons and the combined income from all
sources in the taxable year of all persons residing in the residence was less than five
thousand five hundred one dollars.
B. The credit allowed under this section is the amount of property taxes actually
paid during the taxable year or the amount computed as follows, whichever is less:
1. For a person eligible under subsection A, paragraph 3, subdivision (a) of this
section, according to the following table:
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¦ Household Income ¦ ¦ Tax Credit ¦
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¦ $ 0-1,750 ¦ ¦ $502 ¦
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¦ 1,751-1,850 ¦ ¦ 479 ¦
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¦ 1,851-1,950 ¦ ¦ 457 ¦
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¦ 1,951-2,050 ¦ ¦ 435 ¦
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¦ 2,051-2,150 ¦ ¦ 412 ¦
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¦ 2,151-2,250 ¦ ¦ 390 ¦
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¦ 2,251-2,350 ¦ ¦ 368 ¦
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¦ 2,351-2,450 ¦ ¦ 345 ¦
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¦ 2,451-2,550 ¦ ¦ 323 ¦
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¦ 2,551-2,650 ¦ ¦ 301 ¦
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¦ 2,651-2,750 ¦ ¦ 279 ¦
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¦ 2,751-2,850 ¦ ¦ 256 ¦
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¦ 2,851-2,950 ¦ ¦ 234 ¦
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¦ 2,951-3,050 ¦ ¦ 212 ¦
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¦ 3,051-3,150 ¦ ¦ 189 ¦
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¦ 3,151-3,250 ¦ ¦ 167 ¦
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¦ 3,251-3,350 ¦ ¦ 145 ¦
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¦ 3,351-3,450 ¦ ¦ 123 ¦
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¦ 3,451-3,550 ¦ ¦ 100 ¦
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¦ 3,551-3,650 ¦ ¦ 78 ¦
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¦ 3,651-3,750 ¦ ¦ 56 ¦
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2. For a person eligible under subsection A, paragraph 3, subdivision (b) of this
section, according to the following table:
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¦ Household Income ¦ ¦ Tax Credit ¦
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¦ $ 0-2,500 ¦ ¦ $502 ¦
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¦ 2,501-2,650 ¦ ¦ 479 ¦
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¦ 2,651-2,800 ¦ ¦ 457 ¦
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¦ 2,801-2,950 ¦ ¦ 435 ¦
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¦ 2,951-3,100 ¦ ¦ 412 ¦
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¦ 3,101-3,250 ¦ ¦ 390 ¦
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¦ 3,251-3,400 ¦ ¦ 368 ¦
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¦ 3,401-3,550 ¦ ¦ 345 ¦
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¦ 3,551-3,700 ¦ ¦ 323 ¦
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¦ 3,701-3,850 ¦ ¦ 301 ¦
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¦ 3,851-4,000 ¦ ¦ 279 ¦
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¦ 4,001-4,150 ¦ ¦ 256 ¦
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¦ 4,151-4,300 ¦ ¦ 234 ¦
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¦ 4,301-4,450 ¦ ¦ 212 ¦
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¦ 4,451-4,600 ¦ ¦ 189 ¦
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¦ 4,601-4,750 ¦ ¦ 167 ¦
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¦ 4,751-4,900 ¦ ¦ 145 ¦
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¦ 4,901-5,050 ¦ ¦ 123 ¦
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¦ 5,051-5,200 ¦ ¦ 100 ¦
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¦ 5,201-5,350 ¦ ¦ 78 ¦
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¦ 5,351-5,500 ¦ ¦ 56 ¦
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C. The owner or lessor of property leased or rented solely for residential purposes, on
request, shall furnish to the tenants of the property a written statement of the
percentage of rental payments that are attributable to property tax for purposes of this
section.
D. Disposition of the claimant's allowable credit shall be as provided below:
1. If the allowable amount of such claim exceeds the income taxes otherwise due on
the claimant's income, the amount of the claim not used as an offset against income
taxes, after audit by the department, shall be paid in the same manner as a refund
granted under chapter 6, article 1 of this title. Refunds made pursuant to this
paragraph are subject to setoff under section 42-1122.
2. The amount of any claim otherwise payable for credit for property taxes accrued
or rent may be applied by the department against any liability outstanding on the books
of the department against the claimant or against the claimant's spouse who was a member
of the claimant's household in the taxable year.
E. The department shall make available suitable forms with instructions for
claimants. Claimants who certify on the prescribed form that they have no income tax
liability for the taxable year shall not be required to file an individual income tax
return. The claim shall be in such form as the department may prescribe but shall
require the social security numbers of persons who were allowed to claim as dependents
for the taxes imposed by this title claimants filing pursuant to this section. The
claimant shall also submit a copy of the claimant's property tax statement or a suitable
representation of the statement as prescribed by the department. The department shall
audit a sufficient number of claims to enforce the provisions of this chapter.
F. No claim with respect to property taxes or with respect to rent shall be allowed
or paid unless the claim is actually filed on or before April 15 for the next preceding
calendar year. The department may, upon request, grant for a period of not to exceed six
months an extension of time for filing the claim.
G. Only one claimant per household per year shall be entitled to a tax credit
pursuant to this section.
H. In this section, unless the context otherwise requires:
1. "Claimant" means a person who has filed a claim for credit under this section
and was a resident of this state during the entire taxable year. In the case of a claim
for rent, the claimant shall have rented property in this state during the entire taxable
year except as otherwise provided by this section. If two individuals of a household are
able to meet the qualifications for a claimant, they may determine between them as to
whom the claimant shall be. If they are unable to agree, the matter shall be referred to
the department and its decision shall be final. If a homestead is occupied by two or
more individuals and more than one individual is able to qualify as a claimant, and some
or all of the qualified individuals are not related, the individuals may determine among
them as to whom the claimant shall be. If they are unable to agree, the matter shall be
referred to the department, and its decision shall be final.
2. "Gross rent" means rental paid for the right of occupancy of a homestead or
space rental paid to a landlord for the parking of a mobile home. If the department is
satisfied that the gross rent charge was paid solely for purposes of receiving a credit
pursuant to this section, it shall not allow a claim.
3. "Homestead" means the principal dwelling, whether owned or rented by the
claimant. "Homestead" may also include a mobile home and the land upon which it is
located.
4. "Household" means the household of the claimant and such other persons as
resided with the claimant in the claimant's homestead during the taxable year.
5. "Household income" means all income received by all persons of a household in a
taxable year while members of the household.
6. "Income" means the sum of the following:
(a) Adjusted gross income as defined by the department.
(b) The amount of capital gains excluded from adjusted gross income.
(c) Nontaxable strike benefits.
(d) Nontaxable interest received from the federal government or any of its
instrumentalities.
(e) Payments received from a retirement program paid by this state or any of its
political subdivisions.
(f) Payments received from a retirement program paid by the United States through
any of its agencies, instrumentalities or programs, except as provided in subsection I of
this section.
(g) The gross amount of any pension or annuity not otherwise exempted except as
provided in subsection I of this section.
7. "Property taxes" means property taxes levied on a claimant's homestead in this
state in any taxable year. For purposes of this paragraph, property taxes are "levied"
when the tax roll is delivered to the county treasurer for collection. If a claimant and
the claimant's household own their homestead part of the taxable year and rent it or
different homesteads for the rest of the same year, provided property taxes were levied
on the homestead which was owned by the claimant and the claimant's household, such
claimant shall be eligible for a credit pursuant to this section.
I. Income as defined in subsection H, paragraph 6, subdivisions (f) and (g) of this
section shall not include monies received from cash public assistance and relief, relief
granted under the provisions of this section, railroad retirement benefits, payments
received under the federal social security act (49 Stat. 620), payments received under
Arizona state unemployment insurance laws, payments received from veterans' disability
pensions, payments received as workers' compensation, the gross amount of "loss of time"
insurance, and gifts from nongovernmental sources or surplus foods or other relief in
kind supplied by a governmental agency.
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