Modifications To The Property Tax Deferral Program

A person who is at least 65 years of age or who is a person called into military service may elect to defer the payment of real property taxes. Other residential real property owners may also defer the payment of a portion of real property taxes under certain circumstances. For all 3 categories of taxpayers who are eligible to defer the payment of real property taxes, the property for which the deferral is claimed cannot be income-producing. Beginning in the 2023 property tax year, the act specifies that the prohibition against the property being income-producing does not apply if the taxpayer claiming the deferral is at least 65 years of age, is a person called into military service, or is the surviving spouse of such a taxpayer.

For a property owner called into military service or a property owner who is not called into military service and is not at least 65 years of age but is otherwise eligible to claim a property tax deferral, to be eligible for the property tax deferral the total value of all liens of mortgages and deeds of trust on the property must be less than or equal to 90% of the actual value of the property (90% requirement). For property tax years commencing on or after January 1, 2023, the act specifies that the 90% requirement does not apply if the owner of the property is a person called into military service and has a home loan guaranteed by the veterans administration of the United States.

APPROVED by Governor June 1, 2023

EFFECTIVE August 7, 2023

NOTE: This act was passed without a safety clause and takes effect 90 days after sine die.
(Note: This summary applies to this bill as enacted.)