By larrym | No Comments
Last updated: Monday, June 2, 2008

If you are an Oregon Senior Citizen and are having problems making your county property tax payment, the State of Oregon Property Tax Deferral Program may be the solution for you.  If you qualify, you can defer your taxes until a later date.
 
To qualify:

• An individual must be age 62 years or older on or before April 15 of the year you file the claim.

  If you are married and apply jointly with your spouse, you both must be 62 years old on or before April 15. If only one spouse is 62, you must file your application as an individual.

  Joint owners—Two or more people may apply for deferral as joint applicants. Both must be 62 years or older. 

• You must own or be buying the property.
  
  You must have a recorded deed to the property. Or, you must be buying the property under a recorded sales contract. You may have a revocable trust. You are not eligible for deferral if you have a life estate interest in the property. 
• All applicants must live on the property; however, you may live away from the property due to medical reasons. You must send a medical statement on letterhead from your health care provider to the Oregon Department of Revenue.
   
• Household income must be less than $37,500 for income tax year 2007. This includes taxable and nontaxable income including Social Security and pensions. This is not the federal adjusted income (FAGI) amount. This income limit may change each year.

 
The taxes are deferred until you sell, move out or die…very similar to the events that would cause a Reverse Mortgage to become due. The deferred taxes accumulate at a rate of 6% interest per year, which is often higher then the Reverse Mortgage interest rate.

The Tax Deferral program can be used in conjunction with a Reverse Mortgage to free up even more cash on a monthly basis, or they can be used separately.

If you are behind on your county property taxes, a Reverse Mortgage can be used to bring you current. We will then help you get enrolled in the State Tax Deferral program if you qualify. If you don’t qualify for the Tax Deferral Program, a Reverse Mortgage might be able to help you make your payment.

If you would like more information on this program, feel free to give me a call.

Larry Morris

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