Property tax assistance from the State of California is again available to needy seniors.
The Legislature has reinstated the Property Tax Postponement (PTP) program that allows low-income seniors, the blind and the disabled to defer payment of their property taxes in exchange for the state taking out a lien on the property.
To be eligible for property tax postponement, a homeowner must be 62, or blind, or have a disability. The homeowner must also have a household income of $35,500 or less, have at least 40 percent equity in the property, and occupy the home as the primary residence, among other requirements.
PTP applies only to current-year taxes. Program participants must reapply for the program each year and demonstrate that they continue to be eligible.
The interest rate for taxes postponed under PTP is seven percent per year. Postponed taxes and interest become due and payable under PTP when the homeowner moves or sells the property, transfers title, defaults on a senior lien, refinances, obtains a reverse mortgage, or passes away.
The State Controller’s team will begin processing applications for the reinstated program on October 1, 2016. Funding for the program is limited and is available on a first-come, first-served basis.
The program application and details are on Controller Yee’s website, or they can be requested by phone at (800) 952-5661.