Applicants must meet the following requirements to be eligible for a Tax Deferral:
o A tax deferral allows elderly taxpayers (over age 65), with annual incomes of less than $40,000 to defer payment on all, or portion, of their property tax.
o The deferral is not an exemption.
o The amount of the deferral, together with 8% annual interest on the deferred amount, must eventually be repaid when the property is sold or transferred or upon the death of the owner.
The deferral becomes a lien on the property.
A tax deferral should be considered when a taxpayer's current expenses make the continue ownership of his or her home difficult.
Statutory Reference Qualifications
Ch. 59, Sec. 5, Cl. 41A An agreement allowing certain persons 65 years of age or over to
postpone payment of all or a portion of real estate tax up to 50%
of full, fair cash value of their property and no transfer of such
property may occur unless the taxes, which would otherwise have
been assessed, have been paid, with interest at the rate of 8% per
annum. This interest is not compounded. Applicant's gross income
from all sources in preceding calendar year cannot exceed $40,000.
Ch. 80, Sec. 13B Sewer Agreement allowing persons eligible under Clause 41A to enter into
Betterment Deferral and deferral and recovery agreement, thereby deferring payment. Applica-
Recovery Agreement tion should be filed within six months after notice of assessment.
This is recorded as a lien on the property and no transfer of such property may
occur unless the betterment assessment, which would otherwise have been
collected, has been paid, with interest at the rate prevailing on that contract.