Deferral Program Statutes ORS 311.666 – 311.735.
Application processThe department will provide the counties with application booklets for the deferral programs. Applicants submit the completed application to the counties between January 1 and April 15. Applications should not be accepted before January. If the April 15 deadline falls on a weekend, applications will be accepted through the next business day.
- Each application should be dated with the received date.
- The county will verify the applicant is the owner on record for the property requesting deferral, and complete the county section of the application. If owner of record doesn't match the application, please indicate that information for the department.
- The assessor or designee needs to sign the application and forward to the department for processing.
It is not the county’s responsibility to verify that the qualification criteria of the applicant has been met. The department will verify all eligibility requirements as set forth by the Legislature.
The department recommends counties send completed applications on a weekly basis. Send the applications to the Deferral Unit at PO Box 14380 Salem, OR 97309. The following counties have access to the state shuttle: Benton, Clackamas, Lane, Lincoln, Linn, Marion, Multnomah, and Washington.
Deferral account status
The department will send monthly status reports to the county showing approved or denied applicants. The report will also show status changes for existing accounts.
For all approved applicants, the county needs to place a flag on their system. This flag must remain on the system until the department has been reimbursed for deferred taxes and has processed the lien release. Once the county receives a monthly report showing a released status on the account, the flag may be removed.
Delay of foreclosure
Approved applicants with delinquent taxes may apply for delay of foreclosure through the county. Personal property (manufactured structures/floating homes) doesn't qualify for the delay. You are not required to send the department notification of the delay of foreclosure.
When a deferral disqualification occurs, the delay of foreclosure will end. The delinquent taxes and interest become due to the county on or before August 15 the year following the deferral disqualification. The county may initiate foreclosure proceedings at that time.
The department is paid by the county for amounts owing on a deferral account at the conclusion of the foreclosure process.
LiensThe department will record a lien for each approved property. The lien documents are sent to each of the county clerk's office to be recorded. The lien attaches to the property on July 1. Lien fees are charged to the deferral account.
When a deferral account is paid in full and closed, the department will send a lien release document to the county to be recorded.
Tax paymentsThe department sends a paper report or electronic file to the counties in September of each year identifying the accounts on which the department will make payments on behalf of the taxpayer.
Payments will be by electronic transfer on November 15.
Notice of status changes
The county should notify the department of any change in status for the property or applicant. This includes:
- Sale of property (including partial)
- Change of ownership
- Move from the property
The department may need to request additional information in these circumstances to verify the eligibility for continuation in the program.
An applicant may sell part of their property and remain on the deferral program. The county needs to provide the department with the value of the segregated parcel, tax rate, and tax amount for each year deferred. The department will calculate the interest and send a billing to the applicant for reimbursement of taxes for the segregated property. When the department receives payment and a copy of the recorded deed, a partial lien release will be processed.
Personal manufactured structures Manufactured structures taxed as personal property qualify for the deferral program.
Information regarding the ownership and location of all manufactured structures is maintained by the Department of Consumer and Business Services. The counties may access the information through the LOIS system. When an application is approved, the Department of Revenue will be noted on the LOIS System as an issue. The county needs to notify Revenue if there is a change of ownership request for a manufactured structure under the deferral program.
Payment in full must be sent to the Department of Revenue before the issue will be removed and any changes can be made regarding the ownership of the manufactured structure.
Abandoned manufactured structures
If a manufactured structure is abandoned, send the department a copy of the Notice of Abandonment. After the abandonment process is complete, the department will close the deferral account, remove the issue from the LOIS system, and process the lien release.
Payment informationThe payoff screen gives you the most up-to-date information available at the time of your request.If you request a payoff after September 1, the balance may not include the current year's property taxamount. Please contact the Deferral Unit.
The Deferral program laws require that we pay the taxes due on November 15 for all accounts activein our system as of July 1.
Between July 1 and September 1:
If you don't want us to pay the current year's property taxes, mail us a signed and dated cancelstatement on or before September 1. All joint applicants must sign. (ORS 311.668, 311.684,and OAR 150-311.684)Between September 1 and November 15:
- If you sold the property, changed ownership, moved, or died; or
- If the title company does a loan transaction (refinance/reverse mortgage, etc.; then
- We will pay the current year's property taxes to the county.
We will pay the current year's property taxes. However, you will be responsible for reimbursingus. We suggest that title companies hold back enough funds to reimburse us for the currentyear's taxes.For valid deferral accounts, property tax payments are made on November 15. Special assessmentpayments are made to the taxing districts on February 1 and August 1.
- If you sold the property, changed ownership, moved, or died; or
- If a cancel statement is received; then
Lien release information In order to process a lien release on a deferral account, we require the following:
- The deferral account must be paid in full, including the current year's property taxes. For refinances and reverse mortgages, if the lender requires first lien position, you must send us a completed cancel statement. It must be signed by everyone listed on the payoff screen or by their representative.
- We will provide a copy of the lien release only when requested in writing.
- You may re-apply for the deferral program between January 1 and April 15.
Oregon provides special assessment relief for qualified low-income senior citizens. These are assessments by a city, county, sanitary district, or other taxing district for improvements such as paved streets, sidewalks, and sewers.
Oregon homeowners age 62 or older may defer payments on certain special assessments against their property.
October 1 to December 1—Applications accepted at the tax district that is billing for the improvements (sewer, streets, lights, etc.).
February 1—The department pays the bonding district the assessment amount due for July 1 through December 31.
August 1—The department pays the bonding district the assessment amount due for January 1 through June 30.