In Texas, the legislature has laws and regulations that protect the elderly and/or disabled homeowners from losing their homes while they are living in them. Counties offer different types of Property Tax Deferrals to protect these property owners. The catch is that these property owners must apply for the deferrals thru their counties’ Central Appraisal District (CAD).
According to the Texas Property tax code 33.06, homeowners who are eligible for a homestead exemption, that 65 years of age or older or have a disability, are eligible for a deferral from the appraisal district to defer the collection of the property taxes. A property tax deferral stops collection efforts on the property taxes until the property no longer qualifies as the residence homestead of the person who is 65 years of age or older or disabled.
Property taxes will continue to accrue interest during the deferral period at an interest rate of 8% per year. Once the deferral has been granted, additional charges cannot be levied for delinquent interest and penalty. Also, deferred property taxes that remain unpaid will appear as delinquent taxes to the public.
Eligibility Criteria:
Tax deferrals may be a choice for homeowners who are:
- 65 years old or older
- Disabled persons (defined by law)
- Veterans who are disabled or children below 18 years if there is no surviving spouse
- Unmarried surviving spouse or unmarried children below 18 years of an armed service member killed on active duty
How to apply for a Tax Deferral?
To apply for a tax deferral, you need to fill the forms at the country tax assessor collector’s office.
- Homestead Exemption Application
- Affidavit of Disability
- Over 65 and Disabled Tax Deferral Affidavit
- Tax deferral affidavit for appreciating residence homestead value
- Appraisal Increase Deferral Affidavit
A deferral can be terminated if a person eligible for the deferral no longer occupies the property due to the residence being inherited or sold. The accrued interest and deferred taxes must be paid on or before 181 days after that the person owns or occupies the property.
From 181 days onwards, the entire amount becomes due, hence taxing units can proceed with the collection, including foreclosure.
As one of the largest property tax lenders in Texas, Ovation Lending has extensive knowledge in property tax deferrals for homeowners who are disabled or 65 years or older. We will assist in helping you to understand your repayment options with the county.
Call us at (877) 419-7392 to discover why thousands of property owners just like you choose Ovation Lending to pay property taxes!