Variations in Receipt of Benefit
No Variation in Receipt of Benefits
The benefit is a deferral of property tax. During the period of deferral, interest shall accrue on the amount deferred at the annual rate of 6% annually. The amount of taxes deferred constitute a lien on the property for the total amount of taxes plus interest. Applicants must qualify and apply for the tax deferral every year with the County Assessor's office.
How is Benefit Disbursed
Eligible Property Type
Characteristics of Eligible Property
Only homesteads are eligible for this benefit. A “homestead” is defined as the owner-occupied primary dwelling place of the claimant. It may consist of a part of a multidwelling or multipurpose building. The exemption extends to land surrounding the homestead which is necessary for its use as a home. This may not exceed one acre. Homestead does not include personal property such as furniture, furnishings or appliances, but a manufactured home may be a homestead.
Description of Eligibility Criteria
Claimant must meet all eligibility requirements for circuit breaker tax reduction except for income limitations. To apply for 2019 deferral, 2018 income must be less than $44,510. Requirements include that the applicant be at least one of the following: A) 65 or older B) A child under 18 who has no parent or guardian C) A widow or widower D) A disabled person recognized by the social security administration, railroad retirement board, or by the Office of Management and Budget E) a disabled veteran F) A person who was taken by a hostile force G) Blind The homeowner must have sufficient equity, which includes that the property is not security for a reverse mortgage and that the total encumbrances on the property do not exceed 80% of the current year's market value. The homeowner must also have proof of adequate insurance to receive the benefit. Applications for 2019 deferrals are due on 15 April 2019.
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
By December 20th of each year, the state tax commission shall pay to each county tax collector 1/2 of the amount due as reimbursement for property taxes deferred. They shall pay the second 1/2 of the reimbursement by June 20th of the following year. However, claims are subject to approval and disapproval by the state tax commission. The payments may be combined with payments for the property tax reduction. The total amount of reimbursement payable to all counties shall not exceed $500,000 for one calendar year. In the event that the amount of deferral exceeds $500,000, the amount of taxes deferred for each qualifying property shall be reduced proportionately.