If you believe that you (or someone you know) would benefit from the senior tax deferral program, we’re here to help you understand the benefits and eligibility requirements.
It can be challenging to stay up to date with property taxes, especially if you reside in a high cost of living area. If you’re working with a limited or fixed income and are interested in finding out more about this program, we share the details here.
Benefits of the tax deferral program
Boulder and the surrounding areas have higher-than-average property taxes. As property values continue to rise, many senior citizens are looking for a way to ease the financial burden. Luckily, the senior property tax deferral program can provide relief for qualified individuals. While this program doesn’t eliminate property taxes, it allows the homeowner to delay tax payments until the sale of the residence or settlement of the estate. If you’re eligible for the tax deferral, you have the option of postponing the entire value of the taxes, or choosing to pay half of the total. However, it’s crucial to keep in mind that interest is charged each year that you defer payments. For 2018, the interest rate is 2.25 percent.
To qualify for the senior property tax deferral program, you must fulfill the following criterion:
- On or before January 1st of this year, you should be at least 65 years of age.
- You must be the trustee and beneficiary if the property is in a trust.
- You may not use the property to earn income.
- The property must be your primary place of residence.
- Your property taxes must not be delinquent at the time of your application.
If you’re thinking about applying for the senior property tax deferral program, there are a few additional details you should note before beginning the process. In most cases, your application won’t be approved if you have a reverse mortgage. However, you may be able to come to a solution with your lender if they agree to subordinate. To proceed, you’ll need to request an application or get in touch with the Treasurer’s Office. Before you begin your application, be sure to have the following information on hand:
- Your full, legal name
- The name of the trust, if applicable
- Your date of birth
- The address of the property
- Your current phone number
- The name of your lender
- The current balance of your mortgage
Applying for the senior property tax deferral program may help ease financial burden and stress for those aged 65 or over.
By Michaela Phillips. Michaela is the Vice President of Mortgage Lending at Guaranteed Rate, Inc. Contact Michaela at 303.579.5517, e-mail email@example.com or visit michaelaphillips.com. NMLS: 312874.