(a)Annually, the Commissioner shall determine the property tax credit amount under section 6066 of this title, related to a homestead owned by the claimant, based on the prior taxable year’s income and crediting property taxes paid in the prior year. The Commissioner shall notify the municipality in which the housesite is located of the amount of the property tax credit for the claimant for homestead property tax liabilities on a monthly basis. The tax credit of a claimant who was assessed property tax by a town that revised the dates of its fiscal year, however, is the excess of the property tax that was assessed in the last 12 months of the revised fiscal year, over the adjusted property tax of the claimant for the revised fiscal year, as determined under section 6066 of this title, rel
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(a) Annually, the Commissioner shall determine the property tax credit amount under section 6066 of this title, related to a homestead owned by the claimant, based on the prior taxable year’s income and crediting property taxes paid in the prior year. The Commissioner shall notify the municipality in which the housesite is located of the amount of the property tax credit for the claimant for homestead property tax liabilities on a monthly basis. The tax credit of a claimant who was assessed property tax by a town that revised the dates of its fiscal year, however, is the excess of the property tax that was assessed in the last 12 months of the revised fiscal year, over the adjusted property tax of the claimant for the revised fiscal year, as determined under section 6066 of this title, related to a homestead owned by the claimant.
(b) The Commissioner shall include in the total property tax credit amount determined under subsection (a) of this section, for credit to the taxpayer for homestead property tax liabilities, any income tax overpayment remaining after allocation under section 3112 of this title and setoff under section 5934 of this title, which the taxpayer has directed to be used for payment of property taxes.
(c) The Commissioner shall notify the municipality of any claim and refund amounts unresolved by November 1 at the time of final resolution, including adjudication, if any; provided, however, that towns will not be notified of any additional credit amounts after November 1 of the claim year, and such amounts shall be paid to the claimant by the Commissioner.
(d) [Repealed.]
(e) At the time of notice to the municipality, the Commissioner shall notify the taxpayer of the property tax credit amount determined under subdivision 6066(a)(1) of this title, the amount determined under subdivision 6066(a)(3) of this title, any additional credit amounts due the homestead owner under section 6066 of this title, the amount of income tax refund, if any, allocated to payment of homestead property tax liabilities, and any late-claim reduction amount.
(f)(1) For taxpayers and amounts stated in the notice to towns on or before July 1, municipalities shall create and send to taxpayers a homestead property tax bill, instead of the bill required under subdivision 5402(b)(1) of this title, providing the total amount allocated to payment of homestead education property tax liabilities and notice of the balance due. Nothing in this subdivision, however, shall be interpreted as altering the requirement under subdivision 5402(b)(2) of this title that the statewide education homestead tax be billed in a manner that is stated clearly and separately from any other tax. Municipalities shall apply the amount allocated under this chapter to current year property taxes in equal amounts to each of the taxpayers’ property tax installments that include education taxes. Notwithstanding section 4772 of this title, if a town issues a corrected bill as a result of the notice sent by the Commissioner under subsection (a) of this section, issuance of the corrected new bill does not extend the time for payment of the original bill nor relieve the taxpayer of any interest or penalties associated with the original bill. If the corrected bill is less than the original bill, and there are also no unpaid current year taxes, interest, or penalties, and no past year delinquent taxes or penalties and interest charges, any overpayment shall be reflected on the corrected tax bill and refunded to the taxpayer.
(2) For property tax credit amounts for which municipalities receive notice after November 1, municipalities shall issue a new homestead property tax bill with notice to the taxpayer of the total amount allocated to payment of homestead property tax liabilities and notice of the balance due.
(3) The property tax credit amount determined for the taxpayer shall be allocated first to current year property tax on the homestead parcel, next to current-year homestead parcel penalties and interest, next to any prior year homestead parcel penalties and interest, and last to any prior year property tax on the homestead parcel. No credit shall be allocated to a property tax liability for any year after the year for which the claim or refund allocation was filed. No municipal tax-reduction incentive for early payment of taxes shall apply to any amount allocated to the property tax bill under this chapter.
(4) If the property tax credit amount as described in subsection (e) of this section exceeds the property tax, penalties, and interest due for the current and all prior years, the municipality shall refund the excess to the taxpayer, without interest, within 20 days of the first date upon which taxes become due and payable or 20 days after notification of the credit amount by the Commissioner of Taxes, whichever is later.
(g) The Commissioner of Taxes shall pay monthly to each municipality the amount of property tax credit of which the municipality was last notified related to municipal property tax on homesteads within that municipality, as determined by the Commissioner of Taxes. (Added 1999, No. 49, § 37, eff. Jan. 1, 2000, § 37a, eff. Jan. 1, 2001; amended 2001, No. 63, § 163d; 2001, No. 144 (Adj. Sess.), § 18, eff. June 21, 2002; 2003, No. 70 (Adj. Sess.), § 49, eff. March 1, 2004; 2005, No. 185 (Adj. Sess.), § 3; eff. Jan. 1, 2007; 2007, No. 65, § 50b; 2007, No. 65, § 291, eff. June 4, 2007; 2007, No. 190 (Adj. Sess.), §§ 14-16, eff. June 6, 2008; 2009, No. 1 (Sp. Sess.), § H.29; 2009, No. 160 (Adj. Sess.), § 15, eff. June 4, 2010; 2011, No. 143 (Adj. Sess.), § 11, eff. May 15, 2012; 2011, No. 143 (Adj. Sess.), § 27, eff. Jan. 1, 2013; 2013, No. 174 (Adj. Sess.), § 19; 2018, No. 11 (Sp. Sess.), § H.15, eff. July 1, 2019; 2019, No. 14, § 81, eff. April 30, 2019; 2019, No. 51, §§ 28, 32; 2023, No. 144 (Adj. Sess.), § 6, eff. June 3, 2024; 2025, No. 73, § 65, eff. July 1, 2025.)