Bill to expand senior homestead tax‑deferral program advances to committee hearing; sponsors emphasize outreach and expanded eligibility

Representative E. Warner Reschke presented House Bill 3712 on March 18, proposing changes to the Homestead Property Tax Deferral Program to expand eligibility and address low participation.

“House Bill 3,712 relates to the Homestead Property Tax Deferral Program, which is available for seniors and disabled persons. What the bill does is it increases the household income limit for the program from 60,000 to 80,000 per year, reduces the residency requirement from 5 years to 3 years, and increases the homestead real market value for each county except for owners who have lived in the homestead for less than 7 years or more than 22 years,” the Legislative Revenue Office summarized for the committee.

Nut graf: Sponsor Reschke said the bill targets the top reasons people are denied from the current deferral program — minimum residency, real‑market‑value limits, and income limits — while witnesses and advocates urged that improving outreach and addressing program design issues could substantially increase participation before enlarging the program’s parameters.

Reschke reviewed LRO and assessor data showing the top three recorded reasons for denial from 2019‑2024 were insufficient years of residency, real‑market‑value over county caps, and income above the limit. He said HB 3712 would move the residency minimum from five to three years and simplify the program’s multiple value‑step categories into fewer bands, aiming to make the program accessible to more seniors while preserving the deferral structure that keeps local jurisdictions whole until property transfers.

Witnesses: Jody Weiser and John Calhoun of Tax Fairness Oregon urged caution and recommended targeted research and better outreach. Weiser said participation has fallen sharply; she cited about 3,662 participants in the deferral program and urged more fact‑finding about why eligible seniors do not enroll. Weiser and Calhoun both said improving participation and evaluating program design might address senior property‑tax anxiety without removing revenue from local governments.

LRO and technical points: LRO staff explained how the fund works, described county‑level real‑market‑value bands and the minimum RMB cap, and noted program changes would affect fund cash flows if participation rose. Committee members asked for additional data on senior mobility and whether downsizing while remaining in the program was feasible; LRO said the program allows people who are already in the program to continue when they downsize and offered to research mobility trends further.

Ending: The committee closed the public hearing on HB 3712 and acknowledged additional questions about participation rates and implications for the deferral fund; staff and LRO were asked to provide more analysis if the committee advances the bill.