Property Tax Deferral for Disabled & Senior Citizens

If you are disabled, collecting federal Social Security disability benefits, and a homeowner in Lincoln County, you may qualify for the Disabled Citizens' Deferral or If you are at least 62 years of age and a homeowner in Lincoln County, you may qualify for the Senior Citizens' Deferral.

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

Requirements

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.

  • 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.

Net worth

Your net worth limit is $500,000.

Net worth is the total of the current market value of all of your assets minus any debts. It does not include the value of the home for which you're claiming property tax deferral, the cash value of your life insurance policies, or tangible personal property (vehicles, furniture, appliances, clothing, etc.) that you own.

Assets include:

  • Real property (other than the property for deferral)
  • Cash
  • Checking and savings accounts
  • Bonds
  • Other investments minus any debts.

Income criteria

For 2020, annual household income during 2019 cannot exceed $46,000. Household Income includes the income of all persons living in the home with you.

Home occupancy

You must live in your home for at least five years before April 15 of the year in which you apply for the program unless you had to live away from it for health reasons.

Homeowner's Insurance

You must show proof of homeowner's insurance that covers fire and other casualties.

Real Market Value

The real market value (RMV) of your home cannot be more than 100% of the county median RMV, but there are graduated allowances based on additional years of occupancy.

Interest

Deferral accounts accrue interest at the rate of 6% yearly. Interest continues to accrue each year on the balance of deferred tax amounts paid by the Department of Revenue.

Re-certification

To remain in the program, you must "re-certify" every two years. This means you must re-apply for the program every other year and meet all of the qualifications. If you do not re-certify or qualify, the state will not pay your property taxes.

Reverse mortgages

Please note: If you entered into a reverse mortgage on or after July 1, 2011, and before January 1, 2017, and have equity in your home of at least 40% as of the date of your deferral application, you may qualify for deferral. 

This does not enable retroactive deferral payments for prior tax years but enables deferral to pay the taxes to the county going forward for homes that qualify.

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 have to be paid when any of the following occurs:

  • The taxpayer getting 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 the Lincoln County Assessor's office between January 1 and April 15 to defer the taxes due the following November 15. Income verification is required when you file.

Please view the Oregon.gov - Senior and Disabled Property Tax Deferral Program page for further information and an application. If you need assistance or have questions, please contact our office.