Variations in Receipt of Benefit
No Variation in Receipt of Benefits
The benefit is a deferral of property taxes and special assessments. Participants apply for a loan equal to the amount of property taxes and special assessments levied. The maximum annual loan is $3,525. Deferral of property taxes through this program constitutes a lien on the property for the amount of taxes due plus interest. Interest rates are 1 percentage point higher than the prime lending rate established by the Federal Reserve Board. The interest rate on loans made in 2021 for taxes levied in 2020 is 4.25%. Principal and interest are repaid when an individual transfers ownership of home or moves from home, or the death of the applicant or last surviving eligible co-owner occurs.
How is Benefit Disbursed
Eligible Property Type
Characteristics of Eligible Property
Only residential property is eligible for this program and up to 1 acre of surrounding land. Mobile homes are not eligible.
Description of Eligibility Criteria
The homeowner must be at least 65 years of age or a qualifying veteran at any age who, during the preceding year, lived in the dwelling unit for at least 6 months (temporary residency in a health care facility may be substituted for any portion of this 6-month residency) and had a total household income at or below $20,000. Any co-owner, or spouse of an applicant, must be at least 60 years of age. Total outstanding liens, judgments, mortgages and delinquent property taxes may not exceed 33% of the value of the housing unit, as determined by the most recent property tax assessment. Applications for the deferral program must be filed with the Wisconsin Housing and Economic Development Authority (WHEDA) by 30 June of the year the deferred taxes are due. Contact WHEDA for application information.
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 reimburses all of the local government tax loss
Description of State Funding for Tax Loss
The state provides the loan directly to the property owner. Additionally, the property tax deferral loan program is funded from WHEDA's surplus fund, which the state of Wisconsin requires the housing authority to maintain.
[https://docs.legis.wisconsin.gov/misc/lfb/informational_papers/january_2021/0025_property_tax_deferral_loan_program_informational_paper_25.pdf Accessed 04/29/2022]
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