Variations in Receipt of Benefit
No Variation in Receipt of Benefits
The benefit permits eligible persons to defer payment of all or part of their real estate taxes or special assessment on a principal residence up to 80% of equity. The state pays the taxes and files a lien on the property to ensure repayment. The deferral must be repaid, plus 6% annual interest, within one year of the property owner's death or 90 days after the property no longer qualifies. The total amount of taxes deferred by a taxpayer per year may not exceed $5,000.
How is Benefit Disbursed
Eligible Property Type
Characteristics of Eligible Property
Only residential property is eligible for this program.
Description of Eligibility Criteria
An eligible individual must be 65 years of age or older by June 1 of year for which deferral is claimed, they must own the property and it must be the principal residence for the last three years except for periods where the taxpayer may have resided in a nursing home or sheltered care home. The property must be one that is not subject to a lien for unpaid real property taxes and not held in trust when filing for the first time. An individual’s household income can be no greater than $55,000.
Local Option in Adoption of Program
Local government is unable to exercise an option
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
The state pays the property taxes and then recovers the money when the property is sold or transferred.