Property
Tax Deferral for Homeowners with Limited Income Deferral
Program
** Please note that the deferred amount, plus interest,
becomes a lien in favor of the state until the total
amount is repaid. The deferral only applies to the 2nd
half taxes owing **
Under this deferral program, the
Washington State Department of Revenue pays the second
installment of your property taxes and/or special
assessments, due Oct. 31, on your behalf. The program is
not an exemption or a grant. Deferred taxes are taxes
that have been postponed. When you no longer own and use
the property as your personal residence, you must repay
the deferred tax. The deferred amount, plus interest,
becomes a lien in favor of the state until the total
amount is repaid.
To be eligible for this program, you must
meet the ownership, occupancy, income, and equity
requirements. In addition, your first property tax
installment for the year, due April 30, must already be
paid and your application must be filed no later than
September 1.
Program Requirements:
-
Ownership – You must have owned your
home for the five years before you can apply for a
deferral
-
Residency/Occupancy - the property
must be your principal place of residence and you
must occupy the home for more than nine months
during that year and every subsequent year
-
Income limit – Household disposable
income for the previous year must be $57,000 or
less.
-
Equity – There must sufficient equity
in your home as taxes deferred cannot exceed 40% of
your equity
-
Insurance – current fire and casualty
insurance must be carried with WA Dept. of Revenue
listed as a “Loss Payee” on the policy
-
2nd half tax – this deferral only
applies to the 2nd half taxes owed
-
Application year – to qualify for
current year 2nd half tax deferral, you must qualify
in the previous year
Due to the extensive restrictions on this
program, our office highly suggests that you read the
entire publication for further details before submitting
an application. If you have any questions, please call
509-754-2011 ext. 2672
