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Level 2
August 23, 2022
Solved

Disqualified for Natural disaster credit

  • August 23, 2022
  • 8 replies
  • 76 views

  We amended our tax return to claim the 2020 natural disaster tax credit. I attached a copy of our escrow statement showing taxes were paid for 2019, 2020, and 2021.

  We received a message on the Oklahoma Tax Commission (OTC) portal 07/18 that our credit was denied, the letter stated to refer to return instructions. We could not figure out what the issue was, so we called and spoke to the OTC.

  I was informed that escrow statement was not efficient to show as property tax payment, we needed to submit property tax bills, and receipt of payment, who paid and when it was paid. I called the county assessors office, who quickly is mailed me property tax bills and receipts, I uploaded the documents to the OTC portal. I was told it would take 2 weeks to review, I call at 2 week mark and told it would take 4 weeks. I called for update on 8/17, I was told they would send a internal message to the processors. I called today to inquire, and found out on 8/17 there was an internal note added to the file, that the we were disqualified for the natural disaster credit due to  2020 property taxes being lower then 2019,  ($36.66 lower then 2019). I asked for reference where I could read this qualification and was told they did not know where to find it. 

I asked why a letter wasn’t posted to the portal or mailed, I was informed they do not send out letters after supporting documents have been reviewed.
This makes no sense, there is a dead line to handle this and they offer no updates.

 Is there anyone who can give insight on this, it doesn’t make sense. First it was because I had to submit property taxes bill and proof they were paid, now it’s denied for another reason. I can not find anything stating having property tax lower then the year prior disqualifies a home owner the natural disaster credit.

 

Year/property tax 

 

  2019   $1477.53

*2020    $1440.37* Amended disaster yr

  2021   $1495.38

Best answer by Anonymous_

See https://oksenate.gov/sites/default/files/2019-12/Tax_Incentives_Presentation_8-9-17.pdf

 

The amount of the credit is the difference between the property tax paid on the property prior to the damage or destruction and the property tax paid the first year after the improvement is complete.

8 replies

Level 15
August 23, 2022

See https://oksenate.gov/sites/default/files/2019-12/Tax_Incentives_Presentation_8-9-17.pdf

 

The amount of the credit is the difference between the property tax paid on the property prior to the damage or destruction and the property tax paid the first year after the improvement is complete.

Level 15
August 23, 2022

@Badhabitz what was the "first year" the improvement was complete? 

BadhabitzAuthor
Level 2
August 23, 2022

The repairs were completed the same year (2020), insurance came out, denied our claim, we moved forward with paying for repairs out of our pocket.