HomeMy WebLinkAboutAgenda - 09-20-2007-4bx
"Senior Circuit Breaker Property Tax Benefit" (affecting fiscal year 2009-10)
• Beginning January 1, 2009, property owners will have the opportunity to choose
which exemption/deferral program they would like to participate -Homestead
Exemption or Circuit Breaker
o Property owners cannot participate in both programs
• In accordance with the new legislation, property owners who qualify for
Homestead Exemption but choose to participate in the Circuit Breaker deferral
program can have only a portion of their tax bill deferred based on the following
formula
Tax bill minus (Income X .04) =Tax Bill Amount Deferred
• Maximum income for the Circuit Breaker qualification equals $25,000 (gross
income) -the maximum qualifying income for Homestead Exemption
o $25, 000 multiplied by .04 equals $1,000
o Under this provision, the tax bill would not exceed $1,000 and the
difference between the actual tax bill and would be deferred.
o Taxpayers who qualify for Homestead Exemption in every way
except income, but their income does not exceed the maximum by
more than 150%, can elect to defer payment of a portion of their
property tax bill according to the following formula
Tax Bill minus (Income X .05) =Tax Bill Amount Deferred
Under this scenario, the maximum income could be $37,500.
^ $37,500 multiplied by .05 = $1,875
^ Under this provision, the tax bill would not exceed $1,875
and the difference would be deferred.
• This means that some homeowners could get decreases in their tax bills
that exceed the 50% exemption allowed under Homestead Exemption.
• The deferment period is three years meaning that there will never be more
than three years on the tax books. (After being in the Circuit Breaker
program for four years the first years deferred amount disappears, after
five years the first two years disappear, and after six years the first three
years disappear
• There will never be more than three years (plus interest) that could be
recouped by the County and other taxing authorities
• On or before September 1 of each year, the assessor shall notify the
participant of the accumulated sum of deferred taxes and interest.
• Further, should the taxpayer choose to no longer participate. in the Circuit
Breaker or the taxpayer no longer qualifies for the deferral program, there
are no requirements for repayment of the funds previously deferred. That
repayment could be held indefinitely until the property is sold or the
individual is deceased.
• Areas of concern related to the Circuit Breaker include 10-year statute of
limitations, accruement of interest for over three years, lack of notification
of qualifying individuals being deceased.
• Research reveals that normally.less tban_.6.0% of. individuals deceased
have an estate filed, and in many cases, children, or other family members
then occupy the real property.
• At the time allowed by statute for the roll back to take place, the Collector
cannot pursue collection for a period of nine months. However, the law is
not clear as to whether that is nine months from death or from discovery. of
death.