Property Tax Deferral for Disabled or Senior Citizens

State

Oregon

Year

2022

Variations in Receipt of Benefit

No Variation in Receipt of Benefits

Benefit Type

Deferral

Benefit

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. Taxpayers who are participants in the program are required to certify their continuing eligibility every two years after initial approval.

How is Benefit Disbursed

Other

Eligible Property Type

Residential

Characteristics of Eligible Property

Only homestead property is eligible for this program and must be insured for fire and other casualty. The claimant must own and live the homestead for at least five years. The home must also have a real market value within the limitation of their county. Claimants who have lived away from the property due to medical reasons must attach a medical statement on letterhead from their healthcare provider, which must state that they are required to be away from their home for health-related reasons. Claimants who have not lived and owned their homes for five years can still qualify if they satisfy the following criteria: (1) the claimant's home was in the Property Tax Deferral program; (2) the new home must have a lower real market value (RMV); (3) the claimant must sell the old home and purchase the new home within a one-year time frame; (4) the claimant must not finance more than 80% of the purchase price of the new home; and (5) the claimant must satisfy the deferral lien on the prior homestead. Once the criteria are met, the Department of Revenue will send a supplemental worksheet to complete.

Eligibility Criteria

Age

Disability

Homeowner

Income Ceiling

Principal Residence

Property Value Limit

Wealth Limit

Surviving Spouse

Other Criteria

Description of Eligibility Criteria

Applicants must be 62 years old or older, disabled, and/or receiving federal Social Security Disability benefits. Household income must not exceed $51,000 in 2022. The Oregon Department of Revenue calculates a new limit each year which is, in part, based on the Consumer Price Index for All Urban Consumers, West Region. The claimant's net worth must be less than $500,000, excluding the value of the home under the Property Tax Deferral program and personal property. The real market value (RMV) of the home must be less than the greater of either the designated percentage of the county's average RMV (which varies based on the applicant's tenure in their homestead) or $250,000 for 2022. The Oregon Department of Revenue calculates a new limit each year which is, in part, based on the Consumer Price Index for All Urban Consumers, West Region. Claimants must not have had a reverse mortgage, or they must have been on the Property Tax Deferral program with a reverse mortgage prior to 2011 or acquired a reverse mortgage between 2011-2016. If a claimant had entered into a reverse mortgage on or after July 1, 2011, but before January 1, 2017, and has equity in the home of at least 40% at the time of filing, the claimant may qualify for deferral. It must not be the case that, at the time the claim is filed, property taxes imposed on the homestead of any individual filing the claim have been deferred and are delinquent or have been canceled. A surviving spouse or disabled heir of the property may continue to qualify for the deferral program as long as the property becomes their homestead within 2 years of the death of the taxpayer. A surviving spouse must be 60 years old or older no later than 6 months after the death of the taxpayer and otherwise meet the program requirements. Surviving spouses and disabled heirs are exempt from the provision that deferred taxes on the homestead must not have been delinquent or canceled. A surviving spouse or disabled heir must apply by the next April 15th or within 180 days from the date of the deceased participant’s death (whichever is later) to continue the deferral. Surviving spouses who meet all of the requirements for surviving spouses, except for the age requirement, may continue the deferral of previous years' taxes.

Local Option in Adoption of Program

Local government is unable to exercise an option

Local Option Regarding Program Features

No local option regarding program features

State Funding for Local Tax Loss

State and local government share the local tax loss

Description of State Funding for 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.

Record ID

OR101_RR22

Footnotes

Applications must be submitted to the county assessor where the residence is located by 15 April. Effective 01 July 2022: The Oregon Department of Revenue will use the Consumer Price Index for All Urban Consumers, West Region to adjust the maximum property value calculation for inflation. This change is pursuant to 2021 Or. Laws ch. 535 (HB2634). Effective 01 July 2022: Properties with a real market value less than $250,000 (adjusted annually for inflation) qualify for the deferral based on their real market value, regardless of their county-specific requirement. This change is pursuant to 2021 Or. Laws ch. 535 (HB2634). Effective 01 July 2022: At the time of application, applicants must submit a fee of 10% of property taxes owed as long as that amount is between $20 and $150 (adjusted annually for inflation). This change is pursuant to 2021 Or. Laws ch. 535 (HB2634). The growth in the number of new applicants to the program annually is limited to a 5% increase over the prior year's new program participants. Taxes become payable upon (a) the death of a claimant; (b) when the property is sold or no longer inhabited as a homestead (unless reasons of health prevent the owner from occupying the property as a homestead); or (c) when the qualifying disability ends. If income rises above the eligibility threshold, the amount of taxes for which the deferral is allowed shall decline by $0.50 for every $1.00 of income above the threshold. The deferral may be continued after the property is condemned by the Department of Transportation.

Sources

Or. Rev. Stat. § 311.666 ~ § 311.735 (in effect for 2022)
Oregon Department of Revenue, Property Tax Deferrals for Disabled and Senior Citizens (2022)
[https://www.oregon.gov/dor/programs/property/SiteAssets/Pages/deferral/deferral-disabled-senior_490-015-1.pdf Accessed 02/16/2023]
View Archived Source

Oregon Department of Revenue, Senior and Disabled Property Tax Deferral Program
[https://www.oregon.gov/dor/programs/property/Pages/Senior-and-Disabled-Property-Tax-Deferral-Program.aspx Accessed 03/09/2023]
View Archived Source
2021 Or. Laws ch. 535 (HB2634)

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