How to Defer Payment of Property Taxes
Property taxes are one of the many ways that states build revenue. The value of property you own will be assessed by a state tax professional, and property taxes will be levied based on the fair market value of your property. If you have reason to believe that a financial issue might complicate your ability to pay your property taxes on time, you might qualify to defer payment. Each state offers different property tax deferral programs.
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Instructions
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Check with your county tax assessor's office to find out which types of tax deferral programs are available in your state. Common examples of tax deferral programs are deferrals for senior citizens or low-income families. Some municipalities also offer deferred or reduced tax payments for veterans.
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Compare your income level to the income level required to qualify for the tax deferral. Even if you do not consider your family to be low-income, some states only recognize eligibility by income and do not take the size of your family into consideration. Thus if you have two people in your family, and the eligibility requirement is $60,000 for your state, you might be perfectly comfortable financially yet still qualify for a property tax deferral.
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Ask your local tax assessor's office about residency requirements. In some states your eligibility can depend on how long you have owned the property or lived in the state. If the state residency requirements are four years but you have only lived in the state for two years, you will have to wait another two years before being able to defer your annual property taxes.
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Familiarize yourself with the terms of the program for which you qualify. Regardless of the type of deferral program, all will require you to pay your deferred taxes at some time, such as when the property is sold or transferred or upon your death.
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Request an application from the tax assessor's office or, if available in your county, apply online.
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Follow the proper procedures for deferring your property taxes each year. This often requires renewing your eligibility periodically or filling out annual forms.
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Tips & Warnings
If the property is transferred to an individual who also qualifies for property tax deferral, it might not be necessary to pay the sum of the deferred taxes when you hand over the property deed.
If your application for property tax deferral is denied, your county might offer an appeals process.
Consider the consequences of property tax deferral. For example, if you die and your spouse does not qualify for deferral, she might be required to pay the back property taxes that you owe. If she is unable to meet this requirement, she might lose the property.
