Property Tax Deferral Program for Seniors and Active Military Personnel

 

The Property Tax Deferral program helps military personnel and seniors, many of whom live on a fixed income, continue to afford to living in their home by deferring the payment of their property taxes.

 

The State Treasurer's office makes tax payments directly to the county on behalf of the participant for the entire amount due that year. The loan is logged as a lien against the participant's property that does not have to be remitted until the property sells or the mortgage changes hands. In Fiscal Year 2007-2008, the total amount of payments to counties for this program was $5,182,652.  Click here for a list of payments by county.   

 

Requirements for Eligibility

 

• Applicant must be a senior who is 65 years or older, or military personnel serving active duty during the year for which the deferral is filed.
• All prior years' property taxes must be paid.
• Applicant must own and occupy the property as their primary residence. The property cannot be income-producing.
• The total value of liens against the property (mortgages, deferrals, and/or deeds of trust) cannot exceed 100% of the assessed market value.
• Mortgage lender agrees that the state's interest in the property would take priority over all other interests.
• If a qualified applicant has a reverse mortgage, the property is only eligible for future deferrals if a subordination agreement from the mortgage lender is submitted with the application.
• The deferral amount must be paid upon sale or transfer of the property. The deferral amount can also be paid any time prior to sale or transfer without affecting future eligibility.

 

Procedure

 

• Those who qualify must file an application with their respective county treasurer between January 1st and April 1st of each year.
• Once approved, the county treasurer will issue a certificate of deferral to the property owner, keeping one copy on record and sending one copy to the state Treasurer's office. (Note: If property taxes are included in your mortgage payment, you should present a copy of your deferral certificate to the mortgage lender for a refund of the property tax monies held in escrow)
• By April 30, the state Ttreasurer's office will pay the deferred amount to the county treasurer where the property is located.
• The state Treasurer's office maintains an account for each tax-deferred property which accrues interest which is credited to the state's General Fund.
• When the deferred amount is paid to the county treasurer upon sale or transfer of the property, that amount is then transmitted to the state Treasurer's office.

 

Senior/Civilian Deferral Application                     Military Deferral Application

 

Locate your County Treasurer  

 

Property Tax Exemption Program* for Seniors and Disabled Veterans

 

A property-tax exemption is available to senior citizens, surviving spouses of senior citizens, and disabled veterans.  For those who qualify, 50 percent of the first $200,000 in actual value of their primary residence is exempted from property taxation.  The state pays the exempted portion of the property tax. 

The Property Tax Exemption for seniors annd disabled veterans is administered by the Department of Local Affairs, but the Treasurer's office is responsible for the distribution of state funds to counties representing the amount issued in exemptions. 

In 2008, counties processed approximately 7,600 new applications, and the exemption was granted to most of them. Currently, 163,619 properties are approved for the exemption.   

In 2009, the State Treasurer reimbursed local governments $ 85,580,846.57 for exemptions granted in 2008.  Click here to see the total amount exempted for Fiscal Year 2009 by county.

 

*Note: the property tax exemption was not funded for tax year 2009.

 

Requirements for Eligibility, Seniors

 

• Applicant must be a senior who is 65 or older or a surviving spouse of a senior who previously qualified for the exemption.
• Applicant must have owned and occupied the property as their primary residence for ten or more years.
• Fifty percent of the first $200,000 in actual property value is exempt from property taxation.

 

Requirements for Eligibility, Veterans

 

• Applicant must be a disabled veteran who has been rated by the U.S. Department of Veterans Affairs as permanently disabled. (VA unemployability awards do not meet the requirement for determining an applicant's eligibility.)
• Applicant must have owned and occupied the property as their primary residence on January 1st of the year in which they are applying for the exemption. (If the veteran's spouse is an owner and the veteran is not, the veteran can still qualify if the couple was married on or before January 1 and both have occupied the property as their primary residence since January 1.)
• Fifty percent of the first $200,000 in actual property value is exempt from property taxation.

 

Procedure, Seniors

 

• Seniors and/or surviving spouses who qualify for the property tax exemption must submit an application to their county assessor between January 1st and July 15th of each year.
• The state Treasurer's office distributes state funds to the county where the exempted property is located.

 

Procedure, Disabled Veterans

 

• Disabled Veterans who qualify for the property tax exemption must submit an application to their county assessor between January 1st and July 1st of each year.
• The state Treasurer's office distributes state funds to the county where the exempted property is located.

 

Senior/Civilian Exemption Application                Disabled Veteran Exemption Application

 

Locate your County Assessor

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