Homestead Declarations and
Property Tax Adjustments

Age 62 or Older in 2007 If the Claimant shares ownership of the
housesite with his or her descendant(s), the full housesite value and
property tax may be claimed, even if the other owners (descendants) are not members of the household. A letter of explanation may be requested.

Divorced or Legally Separated Joint Owners If you are (1) divorced or legally separated from your spouse, and (2) the name of your former spouse or spouse from whom you are separated remains on the deed, and (3) you are awarded possession of the home, you can claim the percentage of the housesite property tax for which you are responsible under the final divorce decree or court order. If the divorce decree or court order does not specify responsibility for the property taxes, the person residing in the home declares the property as his or her homestead and is allowed 50% ownership of the housesite. The person not living in the home cannot make a property tax adjustment claim. Examples: (1) Dan and Lynn are divorced/legally separated but both names stay on the deed. Lynn is given possession of the home and 100% responsibility for the property taxes. Lynn declares the property as her homestead on
HS-122 Section A and the property is taxed at the homestead school
property tax rate. She uses the housesite value and housesite property taxes from the property tax bill and enters 100% ownership interest on HS-122 Section B Line B8. (2) Ethan and Myrna are divorced/legally separated but both names stay on the deed. Myrna has possession of the home and Ethan has 100% responsibility for the property taxes. Myrna declares the property as her homestead on HS-122 Section A and the property is taxed at the homestead school property tax rate. She cannot claim property tax adjustment as she is not responsible for the property taxes. Ethan cannot claim property tax adjustment as he does not live in the home. (3) James and Elizabeth are divorced/legally separated but both names stay on the deed. Elizabeth lives in the home, but the divorce decree/court order does not say who is responsible for the property taxes. Elizabeth declares the property as her homestead on HS-122 Section A and the property is taxed at the homestead school property tax rate. She uses the housesite value and housesite property taxes from the property tax bill and enters 50% ownership interest on HS-122 Section B Line B8. James cannot claim property tax adjustment as he does not live
in the home. These rules also apply to ex-civil union partners upon
dissolution.

You may be asked for a copy of the portions of the court document
showing the court, date filed, signature page, and the housesite-related provisions.

Duplex Housing
BOTH OWNERS OCCUPY THE DUPLEX AS THEIR PRINCIPAL DWELLING
The eligible housesite property tax is the tax on the portion owned by each Claimant. If the town issues a property tax bill to each Claimant for only his or her portion of the housesite, use the housesite value and property tax information on the bill. If the property tax bill is for the total property, the Claimant uses the housesite value and property taxes pro rated for his or her ownership interest. Examples: (1)
Jack and Jill own a duplex and each occupy half as their principal
dwelling. The town sends them each a property tax bill for their
respective units. Jack and Jill each declare the property as their
homestead on HS-122 Section A and the property is taxed at the
homestead school property tax rate. They use the housesite value and housesite property taxes from their property tax bill and enter 100% ownership on HS-122 Section B Line B8. (2) Sally and Sara own a duplex home and each occupies their half as their principal dwelling. The town sends one property tax bill. Either Sally or Sara declares the property as a homestead on HS-122 Section A and the property is taxed at the homestead school property tax rate. They file separate property tax adjustments and use half of the housesite value on HS-122 Section B Line B4, half the housesite property tax on HS-122 Section B Line B5 (and if applicable B6) and enter 100% ownership interest on HS-122 Section B Line B8.

ONE OWNER DOES NOT OCCUPY HIS OR HER PART OF THE DUPLEX AS A PRINCIPAL DWELLING
The owner occupying the duplex as his or her principal dwelling pro rates his or her ownership interest by the other owner's interest. Examples: (1) Tom and Jerry own a duplex. Tom lives in the duplex but Jerry moved out and now rents his portion. The town issues a property tax bill to each owner. Tom declares the property as his
homestead on HS-122 Section A and his portion of the property is taxed at the homestead school property tax rate. Since Jerry holds a half ownership interest in Tom's property, Tom uses the housesite value and housesite property tax from his property tax bill and enters 50% ownership on HS-122 Section B Line B8. (2) Jane and her brother Dick own a duplex. Dick occupies his portion of the property as his principal 47 dwelling. Jane rents her side of the duplex to others. The town issues one property tax bill for the property. Dick declares the property as a homestead on HS-122 Section A and enters 50% rental use on HS-122 Section A Line A5. He uses the housesite value and housesite property tax from the property bill for HS-122 Section B Line B5 (and if applicable B6) and enters 50% ownership interest on HS-122 Section B Line B8 to adjust for Jane's 50% ownership in his property. Entity Ownership When an entity such as a C or S corporation, partnership or limited liability company owns the property, the property cannot be an individual's homestead. There is an exception for entity ownership of a farm. See Reg. 1.5401.

Life Estate A person occupying the property as his or her principal
residence through a life estate is the person who declares the property as the homestead. Check the box on HS-122 Section A Line A8. The life estate must be granted through a legal document. The legal document does not have to be attached to the HS-122 form but must be available for review upon Department request.

Nursing Home or Residential Care for Other Owner If the claimant is age 62 or older and the other owner of the housesite is the claimant's sibling or spouse who has moved indefinitely from the housesite to a nursing home or a residential care facility, the claimant treats his or her claim as if he or she is the only owner, provided the sibling or spouse does not make a claim for the same housesite or does not file for a renter rebate.

Shared Ownership of the Housesite When a housesite is owned by
someone other than the Claimant and member(s) of the household, the eligible property tax or housesite value is the percentage owned by the household members. Examples: (1) James, Grace and Lucinda jointly own a home and all live in the home. Lucinda is the Claimant. She declares the property as a homestead on HS-122 Section A. She enters the amount found on the property tax bill for the housesite value on HS-122 Section B Line B4, the housesite property tax on HS-122 Section B Line B5 (and if applicable B6) and enters 100% ownership interest on HS-122 Section B Line B8 as all owners live in the home; (2) Tim and Dan own a home. Tim lives in the home. Dan does not. Tim is the Claimant. He declares the property as his homestead on HS-122 Section A and it is taxed at the homestead school property tax rate. He enters the amount found on the property tax bill for the housesite value on HS-122 Section B Line B4, the housesite property tax on HS-122 Section B Line B5 (and if
applicable B6) and enters 50% ownership interest on HS-122 Section B Line B8 to adjust for ownership interest of Dan who does not live in the household.

Trust Ownership A dwelling owned by a trust is not a homestead unless it is the principal residence of the grantor who is the sole beneficiary of the trust, and the trust is revocable or becomes irrevocable solely by reason of the grantor's death. The term "sole beneficiary" is satisfied if a husband and wife or civil union partners together are the only beneficiaries of the trust. Check the box on HS-122 Section A Line A7 if trust ownership meets this definition. Go to the Department website or call for information on trusts with beneficiaries who are mentally or physically disabled. The trust document does not have to be attached to the HS-122 form but must be available for review upon Department request.