Tax Relieffor Owners
Other financial relief for older homeowners includes various forms of tax abatement, and, in some locales, discounted utility rates. Many states have passed some type of property tax relief for older citizens. These include the so-called “circuit breaker,” which reduces property taxes according to income (the smaller the income, the smaller the tax). Circuit breakers do not exist in every state and vary with local and state tax laws. But they are too substantial to overlook, so check with your area Office on Aging or local housing department to see if your state has one and if you are eligible. To illustrate—a 1983 Illinois circuit-breaker program available to older or disabled persons gave a maximum grant of $700 (minus 5 percent of house EC), hold income) plus a grant of $80 to all qualified applicants. Some other forms of tax relief for older homeowners include homestead exemptions that reduce the assessed value of owner-occupied homes, property tax freezes, deferrals of tax payments until the owner’s death or the sale of the house, and tax credits of various kinds. Most forms of tax abatement are greatly underused. In Oregon, only 15 percent of all eligible households participate in the tax-deferral program—and that is one of the highest rates in the nation! In Washington, D.C., fewer than half the homeowners eligible for the homestead tax exemption actually apply.
Don’t miss out just because you are unaware of the tax relief programs available to you. These programs are not well publicized, and you will probably have to seek them out. The best way to start is to call your nearest State Office on Aging or your local property tax office and ask to speak to someone about tax programs for homeowners. They will be able to help you make sure you
are getting all the tax advantages and benefits to which you’re entitled.
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