Changes to the Property Tax Deferral Programs
The Property Tax Deferral programs have seen several changes in recent years. The biggest changes came in 2011 when the Oregon Legislature made adjustments due to the poor economy and weak housing market. Each year since 2011, the Legislature has continued to monitor the health of the program and make additional changes as necessary.
Below, are the legislative changes, listed by year enacted, and how they affect the Deferral Program.
|2013 Changes (HB2510 and HB 2489)|
|Reverse mortgage extension extended (HB2489)|
law allows participants that were identified under HB4039 from 2012 to
remain on the program until they either cancel from the program or
disqualify from the program. To remain active on the program,
participants will need to meet all eligibility requirements except for
the reverse mortgage exclusion and they must recertify to the program
every two years.
Reverse mortgage and Home occupancy rule waiver (HB2510)
participants who either have a reverse mortgage or have not owned and
lived in their home more than five years and were granted deferral
prior to 2011 could reapply to have their taxes deferred. For 2014, the first 700 approved applications, based on receipt at the local
county assessor’s office, can rejoin the program. All other
eligibility requirements remain in effect.
year going forward, the number of approved applications under this
waiver is limited. Contact the Property Tax Deferral Unit for more
|2012 Changes (HB 4039)|
Reverse mortgage extension
law allows participants that were inactivated from the program in 2011
for the sole reason of having a reverse mortgage two additional years of
deferral (2011 and 2012).
The department will determine which
applicants are affected by this provision, and pay the 2011 and 2012
taxes to the counties on their behalf.
County median RMV
defines "county median RMV" to include properties that are classified
as 1-0-1 pursuant to the rule adopted by the department under ORS
department to recertify properties for deferral "not less than once
every three years" rather than once every two years.
participants to complete and return the recertification form within 65
days of notification from the department. Failure to comply with this
renders property ineligible for deferral for the following year.
|2011 Changes (HB 2543)|
Your net worth limit is $500,000.
worth is the total of the current market value of all of your assets
minus any debts. It doesn't include the value of the home for which
you're claiming property tax deferral, the cash value of your life
insurance policies, or tangible personal property (vehicles, furniture,
appliances, clothing, etc.) that you own.
- Assets include:
- Real property (other than the property for deferral)
- Checking and savings accounts
- Other investments minus any debts.
The income criteria is based on "household income" rather than "adjusted gross income".
You must own and
live in your home for at least five years as of April 15 of the year in
which you apply for the program, unless you had to live away from it for
You must show proof of homeowner's insurance that covers fire and other casualties. We need:
Real Market Value
- Name of insurance company (not insurance agent)
- Policy number
The real market value (RMV) of
your home (as shown on the prior year's property tax statement) is
limited to a certain percentage of the county median RMV. The limit
increases based on the number of years you have owned and lived in the
Beginning November 2011, the 6-percent annual interest rate will change from simple interest to compound interest.
- This change doesn't affect the interest rate on property taxes we have paid or will pay before November 2011.
To remain in the
program, you must "re-certify" every two years. This means you must
re-apply for the program every other year and meet all of the
qualifications. If you don't re-certify or qualify, the state won't pay
your property taxes.
Properties with reverse mortgages don't qualify for the deferral program.
will continue to defer the past taxes we have paid (with applicable
interest) until the applicant disqualifies from the program.
Liens on properties owned by people with disabilities
90-percent lien limit on property owed by a person with a disability.
These liens will be treated like senior deferral liens.
We won't prorate or make payments on your property taxes if your income exceeds the limit after you're enrolled in the program.
Eliminates 5-year extension for heirs to repay deferred taxes
There is no longer a five year extension for heirs to repay deferred taxes.
Special assessment program
Special assessments will be phased out as participants leave the program. We cannot approve new special assessment deferrals.