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Sr Citizens / Disabled Persons Tax Deferral Prog
NOTE: This program is available only to senior citizens and people with disabilities whose primary residence is located in Washington State. The applicant must occupy their primary residence more than six months each calendar year. |
The purpose of the Deferral Program is to allow senior citizens and people with disabilities the ability to remain in their homes in spite of rising property taxes. This program works in conjunction with the exemption program.
The exemption program reduces your property taxes. The deferral program allows you to postpone the payment of your property taxes. The State of Washington pays the taxes for the applicant. The maximum dollar amount of deferred taxes allowable on a parcel is limited by the applicant’s equity in that property and insurance. The deferred amount accrues 5% simple interest until repayment is complete. Deferrals must be repaid when the home is sold, the applicant passes away, or the home is no longer used as the primary residence. The lien created by the Deferral Program can only be assumed by a surviving spouse or domestic partner.
Current and delinquent property taxes and special assessments may all be included on one application.
It is important to understand that amounts deferred become a lien on the property in favor of the state. Upon death or eventual sale of the property, the full amount of deferred taxes is due along with interest.
To qualify for deferral on taxes payable in 2021:
- Applicants must be at least 60 years of age by 12/31/2021 or must have been disabled as of 12/31/2020.
- The applicant’s combined disposable income must not be more than $45,858 in 2020.
- The applicant must have owned and occupied your home for more than six months as of December 31, 2020.
- The applicant may apply for payment of prior year taxes on the same application as long as he/she had an ownership interest in the property in the prior years.
Equity
The maximum dollar amount of deferred taxes allowable on a parcel is limited by the applicant’s equity in that property.
Equity is the amount by which the market assessed value of the property exceeds all liens and encumbrances against the property. Liens and encumbrances include mortgages, IRS liens, the unpaid balance on special assessments, any balance due the Department of Social and Health Services, HUD, etc.
Insurance
Insurance must be maintained on the residence to protect the interest of the state and the State of Washington Department of Revenue must be named as loss payee on the insurance policy. When insurance is not maintained OR the State of Washington is not named as loss payee on the policy, the maximum amount of taxes that can be deferred is reduced since only the value of the land can be included in the equity calculation.
An applicant who does not carry fire insurance is limited to 100 percent of the equity in the land value only. This means that if the applicant has a mortgage or any other liens on the home, the amount of the mortgage (and other liens) will be deducted from the land value to determine equity.
Applicants who carry fire insurance on their homes and who have listed the State as loss payee on the policy can include the value of the residence (the assessed value or the insured value, whichever is lower) and are limited to a maximum of 80 percent of their equity in the aggregate value of the home and land.
Deadline and Submission
The application is due 30 days before the tax or special assessment due date. Late applications are accepted and, typically, applications for this program are received year-round.
Submit your application by mail or hand delivery.
Delivery by Mail: | Hand Delivery: |
San Juan County Assessor PO Box 1519 Friday Harbor, WA 98250 | San Juan County Assessor 350 Court Street Friday Harbor, WA 98250 |
Initial Application:
- Application - Deferral Application for Senior Citizens and People with Disabilities 64 0011 (Download, Fill-in)
- Proof of Disability Statement - File certification with application if applicant is a disabled person 64 0095 (Download, Fill-in)
- Exemption and/or Deferral Programs - List of Supporting Documents Required to be File 64 00017 (Download)
Annual Renewal:
Annual renewal is required to continue the deferral program. The Assessor’s Office will send you the renewal form.
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Assessor
Physical Address
350 Court Street
Friday Harbor, WA 98250
Mailing Address
P.O. Box 1519
Friday Harbor, WA 98250
Phone: 360-378-2172