Property Tax Postponement
The State Controller’s Property Tax Postponement Program (PTP) returned in 2016 after being suspended by the Legislature in 2009.
The program allows homeowners who are seniors, are blind or have a disability to defer current-year property taxes on their principal residence if they meet certain criteria including 40 percent equity in the home and an annual household income of $35,500 or less.
A postponement of property taxes is a deferment of current year property taxes that must eventually be repaid. Repayment is secured by a lien against the property.
Eligible California homeowners may postpone payment of all or part of their property taxes through the Property Tax Postponement Program administered by the State Controller’s Office.
To qualify for the program, a homeowner must meet the following criteria:
- Be at least 62 years of age, or blind, or disabled;
- Own and occupy the property as his or her principal place of residence (mobile, manufactured, or modular homes, whether affixed or un-affixed; floating homes and house boats are not eligible);
- Have a total household income of $35,500 or less;
- Have at least 40 percent equity in the property; and
- Not have a reverse mortgage on the property.
To apply, a homeowner must file a claim form with the California State Controller’s Office. A Property Tax Postponement lien will be recorded on the home. The interest rate for taxes postponed under PTP is 7 percent per year.
Funding for the program is limited, and applications will be processed on a first-come, first-served basis. Only current-year property taxes are eligible for postponement.
Collection and Repayment Process
The homeowner may pay all or part of the balance to SCO at any time. However, postponed property taxes and interest become immediately due and payable when the homeowner does any of the following:
- Moves from the property;
- Sells or conveys title to the property;
- Dies and does not have a spouse, registered domestic partner, or other qualified individual who continues to reside in the property;
- Allows future property taxes or other senior liens to become delinquent; or
- Refinances or obtains a reverse mortgage for the property.
A copy of the application and instructions can be downloaded here.
Requirements are subject to change without notice if the law is revised. Please contact State Controller’s Office to verify the current program requirements.
For more information, contact the State Controller’s team at 800.952.5661 or firstname.lastname@example.org.