Why did I receive a reduced Homestead Property Tax Credit or a notice that my credit was denied due to residing in Service Fee/Pilot Housing (payment in lieu of taxes). The notice informed me that I was supposed to use between 1 and 10% to calculate my credit. Please explain why this happened?
Review of your Homestead Property Tax Credit determined that you resided in Service Fee/Pilot (payment in lieu of taxes) Housing and used more than 10% of your total rent for the year to calculate your property tax credit.
Service Fee/Pilot Housing is a program where there is an agreement between a municipality and a rental property owner (private or public) to pay a service fee instead of property taxes.
If your rental property is considered Service Fee/Pilot Housing you may not use 20% of your rent when calculating the Homestead Property Tax Credit. You may only use 10% of your rent when calculating the credit.