Tax deferral is designed to help taxpayers whose income is low relative to the amount of real estate tax due on their residence. With the deferral plan, taxpayers may defer all or part of their taxes, with interest accruing on the deferred amount until it is paid. The deferral becomes a lien on the property. Several conditions must be met in order to defer taxes.
County residents that have homestead exemption on the current roll may defer taxes in excess of 5% of their income. If the taxpayer is 65 or older, they may defer an amount in excess of 3% of their income. County residents with incomes less than $ 10,000 ($ 12,000 if 70 or older) may defer the entire amount of taxes. Income is defined as the adjusted gross income by the Internal Revenue Service and must include the income of all household members.
In addition to the income requirements, several other conditions must be met. The home mortgage may not exceed 70% of the assessed value, and all liens and deferred taxes may not exceed 85% of the home's assessed value. In addition, proof of fire and extended coverage home insurance must be in excess of all liens and deferred tax. The insurance policy must have a payable clause to the Tax Collector.
Applications for the deferral plan must be made each year after the tax bills have been mailed, on or before January 31st. Applications are available at the Tax Collector's Office.