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FAQ
  Service Fee/Pilot Housing
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?
 
Answer:

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 the percentage of your rent as property taxes that the landlord/management company tells you they are paying as a service fee, up to a maximum of 10%, when calculating the credit.


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