Property Tax Deferral for Disabled or Senior Citizens

Oregon

2017

No Variation in Receipt of Benefits

Deferral

The benefit is a deferral of property taxes including those for special assessment improvement purposes with a 6% interest rate per annum. The state pays the county the property taxes, and the property owner owes the money to the state. This deferral results in a lien being placed on the property for the amount of taxes deferred plus interest. Applications must be submitted to the county assessor where the residence is located by 17 April 2017. Taxpayers who are participants in the program are required to certify their continuing eligibility not less than every three years upon notice by the state Department of Revenue.

Other

Residential

Only homestead property is eligible for this program. Legislation passed in 2012, HB4039 delays for two years the restriction on homeowner being disqualified if they have a reverse mortgage. The homestead must be insured for fire and other casualty.

Age

Disability

Homeowner

Income Ceiling

Principal Residence

Property Value Limit

Wealth Limit

Surviving Spouse

Other Criteria

This program is available to persons aged 62 and older or disabled persons who have lived in the home for at least 5 years. The program is limited to those with income below the threshold. The income threshold for 2017 is federal adjusted gross income of $43,500. The limit is calculated annually comparing the Consumer Price Index (CPI) of the first 6 month of the prior year with the first 6 months of the current year. The 5 year requirement does not apply for residents who have moved in order to "downsize." In order to qualify without the 5 year requirement, the applicant must meet the following criteria: (1) Previous home was in the deferral program (2) The new home has a lower market value than the previous (3) The new home was purchased within 1-year of the sale of the previous home (4) The amount financed must be less than 80 percent of the purchase price of the new home. (5) Deferral lien on previous home must be satisfied The program is limited to those with net worth, excluding the home claimed for the deferral, of $500,000 or less. The real market value of the home must be less than a percentage of the median market value of the county, adjusted by the length of time the owner has lived in the house. The residence can be no more than 100% of median market value for those owning and living in house for less than 7 years, up to 250% of median market value for those who have lived in the house for 25 or more years. "Person with a disability" means a person who has been determined to be eligible to receive or who is receiving federal Social Security benefits due to disability or blindness, including a person who is receiving Social Security survivor benefits in lieu of Social Security benefits due to disability or blindness. If 2 or more individuals are filing a claim jointly under the age eligibility criteria, all applicants must be over age 62. Homeowners must maintain insurance covering fire and other casualty. Homeowners with a reverse mortgage are not eligible for the program.

Local government is unable to exercise an option

No local option regarding program features

State and local government share the local tax loss

For persons claiming this deferral, the state annually reimburses local governments the amount of taxes that would otherwise have been paid less 3% of the total. The state maintains a Senior Property Tax Deferral Revolving Account for the purposes of reimbursing local governments for revenues lost as a result of this program.

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