CHATTOOGA COUNTY PROPERTY ASSESSORS WEBSITE

Local Option School Tax Homestead Exemption

Qualifications

 There are three qualifications that must be met in order to receive this exemption

1. The property must qualify for a State Standard Homestead Exemption.

2. At least one of the titleholders, actually occupying the residence as a homestead, must be 70 years of age or older as of January 1st of the tax year.

Example: If the property is titled in the name of "John Q and Jane Z Taxpayer", and both occupy the property as a homestead, then only one of these two must be 70 years of age or older to meet the age qualification.

Note 1: The age qualification is considered from JANUARY 1st of the tax year. If you're applying for tax year 2005, but you don't turn 70 until AFTER January 1st, 2005, then you don't qualify for that year.

Note 2: If the property deed reads "Jane Z. Taxpayer" and it is her husband John Q. Taxpayer who has turned 70, then this property DOES NOT QUALIFY. It has to be one of the people actually mentioned in the deed or other title instrument who is 70 years of age or older.

Note 3: If the property is titled in the name of "John Q and Jane Z Taxpayer", and one of these parties is 70 years old, but neither of them occupy the property, then this property DOES NOT QUALIFY. The property has to be occupied by an actual holder of title who turned 70 no later than January 1st of the year they are applying for to qualify.

3. The combined taxable income of all persons living in the house from all sources of income must not exceed $20,000.00 for the previous tax year.

Example 1: If John & Jane Taxpayer have a taxable income (line 42 on the 2004 1040 federal tax form) of $19,000, and they are the only people occupying the house, then this account would meet the income qualifications.

Example 2: If, however, M/M Taxpayer have a grandson who lives with them who files a separate 1040 form, and his taxable income (line 42 on the 2004 1040 federal tax form) is $10,000, then this property DOES NOT QUALIFY. ($19,000 + $10,000 = $29,000 -- $9,000 too much to qualify)

Example 3: If M/M Taxpayer have a gross income of $5,000, and their grandson (who lives in the same house with them) reports $10,000 gross income on his 1040 form then the property DOES QUALIFY. ($5,000+ $10,000 = $15,000 – this is under $20,000 and so meets the income qualification).