Property Tax Deferral For Disabled and Senior Citizens

If you are disabled, collecting federal Social Security disability benefits, and a homeowner in Tillamook County, you may qualify for the Disabled Citizens Deferral Program.  

OR

If you are at least 62 years of age and a homeowner in Tillamook County, you may qualify for the Senior Citizens Deferral Program. 

Qualification under either program allows you to DELAY paying property taxes on your residence.

If you qualify for the program, the Oregon Department of Revenue (DOR) will make the property tax payment to the county on November 15.

Also:

  • Interest at 6% on the taxes deferred
  • A lien will be placed on your property
  • On manufactured structures, a $55 fee will be charged to your account for DOR to become a security interest holder
  • The cost of recording the lien and the manufactured structure fee will be deferred
  • All payments, plus interest, must be repaid when the property ownership changes

Requirements:

For the Senior Citizens Deferral, you must be 62 years old by April 15 the year you file.

For the Disabled Citizens Deferral, you must be receiving federal Social Security disability benefits on December 31 the year before you file.

For either deferral program;

Joint Owners. At least one needs to qualify.

You must have a recorded deed to the property or be buying the property under a recorded sales contract. Certain trust or trustee arrangements qualify for deferral. You would not be eligible for deferral if you have a life estate interest in the property.

You must live on the property (temporary absences for vacation or health reasons are allowed).

There is an income limit set by the Department of Revenue (which is subject to change) that includes taxable and non-taxable income as well as Social Security and pensions.

Once qualified, the State will continue to pay if your annual federal adjusted gross income does not exceed the current income limit.

The State records a lien on your property:

The deferred taxes paid by the state become a first lien on your property, except for the liens of mortgages or trust deeds that were recorded first.

The lien amount is an estimate of future taxes to be paid and interest to be charged, based on life expectancy tables.

When the Oregon Department of Revenue has approved your application, you must tell your mortgage holder that the state will be paying your taxes.

Paying the deferred taxes:

The deferred taxes (plus interest of 6% compound interest per year on the taxes deferred) have to be paid when any of the following occurs:

The taxpayer qualifying for the deferral passes away leaving no surviving spouse.

You sell the property or in some way change the ownership.

You cease to permanently live on the property.

How to file:

You need to file an application with our office between January 1 and April 15* to defer the taxes due the following November 15.

Income verification is required when you file.

If you have any questions or wish to file, you can contact our office at 503-842-3400 and ask for assistance with the Senior Tax Deferral.

Or for the latest instructions, income limits, and details how the State handles the program when your annual federal adjusted income exceeds the limit,

Additional information from the Oregon Department of Revenue

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