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Staff outlines installment plan and tax-deferral protections for seniors
Summary
City staff described the 0.25 installment payment plan for qualifying over-65 homeowners and a hardship tax-deferral option (code 3306) that freezes penalties and collection while allowing owners to pay at their pace.
Tax administrator Corey Whorsham detailed two principal payment protections for homeowners with over-65 exemptions: the quarterly installment plan commonly called "0.25 pay" and a hardship tax-deferral under code 3306.
On the 0.25 pay option, Whorsham explained qualifying property owners may split their property tax into four equal payments with deadlines on Jan. 31, March 31, May 31 and July 31; early enrollment and automatic re-enrollment rules were reviewed. "We commonly call the 0.25 pay plan," Whorsham said, and staff noted that only the delinquent installment portion accrues penalties if payments are missed.
For owners facing hardship, Whorsham said the tax-deferral program freezes penalties and collection fees at approval, prohibits legal collection activity while deferred, and applies a 5% annual interest on the deferred balance; the deferral remains in force while the owner retains homestead ownership. "Penalties and collection fees are frozen at the time of approval," Whorsham said when describing the program.
A committee member asked how long an owner may remain on the deferral program; staff replied it lasts as long as the owner continues to own the homesteaded property and that a buyer becomes responsible for unpaid taxes upon transfer.
