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:
Household IncomeTax Credit
$ 0-1,750 $502
1,751-1,850 479
1,851-1,950 457
1,951-2,050 435
2,051-2,150 412
2,151-2,250 390
2,251-2,350 368
2,351-2,450 345
2,451-2,550 323
2,551-2,650 301
2,651-2,750 279
2,751-2,850 256
2,851-2,950 234
2,951-3,050 212
3,051-3,150 189
3,151-3,250 167
3,251-3,350 145
3,351-3,450 123
3,451-3,550 100
3,551-3,650 78
3,651-3,750 56
2. For a person eligible under subsection A, paragraph 3, subdivision (b) of this section, according to the following table:
Household IncomeTax Credit
$ 0-2,500 $502
2,501-2,650 479
2,651-2,800 457
2,801-2,950 435
2,951-3,100 412
3,101-3,250 390
3,251-3,400 368
3,401-3,550 345
3,551-3,700 323
3,701-3,850 301
3,851-4,000 279
4,001-4,150 256
4,151-4,300 234
4,301-4,450 212
4,451-4,600 189
4,601-4,750 167
4,751-4,900 145
4,901-5,050 123
5,051-5,200 100
5,201-5,350 78
5,351-5,500 56
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.