Property Tax Postponement Program for Senior, Blind, and Disabled Citizens with Local Option

State

California

Year

2021

Variations in Receipt of Benefit

No Variation in Receipt of Benefits

Benefit Type

Deferral

Benefit

The program provides for a deferral of current year taxes and cannot be used to pay delinquent or defaulted taxes. Counties may elect to have their own postponement program. The state controller does not know if any counties have created their own programs.

How is Benefit Disbursed

Other

Eligible Property Type

Residential

Characteristics of Eligible Property

To be eligible, property must be the principal place of residence for the applicant, including mobile, manufactured, or modular homes, whether affixed or unaffixed. Floating homes and house boats are not eligible.

Eligibility Criteria

Age

Disability

Homeowner

Income Ceiling

Principal Residence

Other Criteria

Description of Eligibility Criteria

For the state program, applicants must be at least 62, or blind or disabled. The owner must have occupied the property as a principal residence since 31 December of the prior year on a continuous basis. The total household income for the prior year (2020 for 2021 application) is $45,810. Prior years' maximum income was $45,000. In addition, the homeowner must have at least 40% equity in the property, based on full market value, and have no reverse mortgages.

Local Option in Adoption of Program

Other

Local Option Regarding Program Features

Local option regarding program features

State Funding for Local Tax Loss

State reimburses all of the local government tax loss

Description of State Funding for Tax Loss

There is a continuously appropriated fund in the Senior Citizens and Disabled Citizens Property Tax Postponement Fund. Repayments are made to this fund at the rate of 5% per annum.

Record ID

CA102_RR21

Footnotes

Effective 1 July 2020, eligible income was increased from $35,500 to $45,000 and interest rates were decreased from 7% to 5% pursuant to California Session Laws, Stats. 2019, ch. 794 (AB113). Annual application must be submitted after 1 October for the current tax year. Limited funds are available and approval is on a first-come, first served basis. For 2020, they can be filed between 1 October 2019 and 10 February 2020. For 2021, they can be filed between 1 October 2020 and 10 February 2021. Generally the forms become available in September of each year and the applications may be submitted between 1 October of that year and 10 February in the subsequent year. The interest rate on the postponed taxes is 5% per year and the postponed taxes create a lien on the property. Payment for postponed taxes may be made any time for either a portion or the full amount deferred. However, they must be repaid when the owner moves or sells the property. In addition the taxes are due if future taxes become delinquent or the owner refinances or obtains a reverse mortgage. Household income is the total income received by all persons (except minors, full-time students, and renters) who resided in the home during the year for which deferral is requested. Income is the Adjusted Gross Income on the applicant's federal tax form. Income also includes: •California State Lottery winnings in excess of $600; 100% of lottery winnings from other states • Veterans Administration benefits • Military compensation • Life insurance proceeds to the extent that they exceed the expenses incurred for the last illness and funeral of the deceased spouse or registered domestic partner of the claimant • Gifts and inheritances in excess of $300, except between members of the household • Alimony received • Amounts received from an estate or a trust • Unemployment insurance benefits • Workers’ compensation payments for temporary disability • Amounts contributed by or on behalf of the claimant to a tax-sheltered retirement or deferred compensation plan • Amounts received from an employer or any government body for loss of wages due to sickness or accident (sick leave payments) • Nontaxable gain from the sale of a residence • Scholarship and fellowship grants • The amount of the alternative minimum taxable income in excess of your regular taxable income, if you were required to pay the alternative maximum tax on your 2016 California income tax return Items not deductible from income: -Mortgage payments -Interest paid on loans -Utilities -Medical bills -Health premiums -Itemized deductions on form 1040

Sources

Ca.Gov. Code §§16180 ~ 16187
Ca. Rev. & Tax. Code § 20514 ~ § 20622
Ca. Rev. & Tax. Code § 20639 ~ § 20639.13 (in effect 2021)
Source Constitution: 
Cal. Const. Art. XIII, § 8.5
California Office of the Controller Property Tax Postponement Application Fiscal 2021-22 (for filing beginning in 2021)
[https://www.sco.ca.gov/Files-ARD-Local/PTP_app_final.pdf Accessed 1/10/2022]
View Archived Source

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