Homeowners that are under 65 years of age on Jan. 1, of the year for which the exemption is claimed, and not totally disabled shall be exempt from ad valorem taxes in a certain amount. The amount given is determined by a sliding scale based upon the assessed value of the property, which is capped at a maximum exemption of $300. One-half of the exemption allowed shall be from taxes levied from school district purposes and one-half shall be from taxes levied from the county general fund.

For example, a regular homestead exemption on a home located within the municipality with a “true value” of $100,000 when the rate for the municipality is 35 mills, the rate for the school district is 50 mills, and the millage rate for the county is 40 mills means a net municipal ad valorem tax bill of $350; a net school district ad valorem tax bill of $350 after a $150 deduction for the homestead exemption and a net county ad valorem tax bill of $250 after a $150 deduction for the homestead exemption. The total ad valorem tax bill would be $950.

For homeowners over 65 years of age or completely disabled, the homestead exemption does not utilize the same sliding scale with which regular homestead exemptions are calculated. State law simply exempts the homeowners from ad valorem taxes for up to $7,500 is assessed value. In other words, a home with a true value of $75,000 or less would be exempt from all property taxes (municipal, school district and county).

Homeowners over 65 years of age within the municipality with the “true value” of $100,000 are calculated differently. The first $7,500 of assessed value is exempted. Therefore, to calculate the net tax due, rather than multiplying the millage rates by the normal $10,000 of assessed value, the millage rates will be multiplied by $2,500 to reflect the $7,500 special homestead exemption. Once the special homestead exemption is applied to the property, the net municipal ad valorem tax bill is 87.50; the net school district ad valorem tax bill is $125; the net county ad valorem tax bill $100; combing for a total net ad valorem tax bill of $312.50.

Local government does receive only a partial reimbursement from the state for ad valorem tax revenue lost due to homestead exemptions.

In conclusion, homestead deadline is April 1. If any of the following changes apply toward your homestead, please come by the tax assessor’s office to change your application before April 1:

(a) You purchased or built a new home or trailer, (b) your spouse died during 2011, (c) You reached the age of 65 or became permanently disabled on or before Jan. 1, 2012, (d) You received ownership of property by will, divorce or any cause through court.

If there are changes, be sure to provide the tax assessor’s office with car tag numbers and proof of age.

If you signed homestead exemption during 2011 or before and made none of the above changes, your homestead will be automatically renewed. There will be no need for you to come by the office.

If you have any questions you may call the tax assessor’s office at 601-442-6732.

 

Angela Gibson Hutchins is and Adams County supervisor representing district 3.