Tax break means someone pays later
By PAMELA BRUST, pbrust@newsandsentinel.comPARKERSBURG - While it could spell some additional tax relief for seniors and disabled persons on the Homestead Exemption, a new change in the law will mean someone will have to pay the price later.
The filing period for the homestead is July 1 to Dec. 1. The homestead is available to those 65 and older or permanently and totally disabled and exempts the first $20,000 of assessed value on their owner-occupied residence.
Senate Bill 239, which took effect July 1, includes the Senior Citizen Property Tax Payment Deferment Act. Under this act, beginning with the tax year commencing on or after Jan. 1, 2009 those on the homestead will be permitted to defer payment of a property tax increase if that increase is greater than $300 or 10 percent. The catch is the amount of the deferment is then placed as a lien on the property.
"So if your property is sold and you have that deferment, that lien has to be satisfied," said Rich Shaffer, administrative assistant in the Wood County Assessor's Office.
Wood County Assessor Steve Grimm said he wouldn't recommend filing for the deferment except as a last resort.
"I really would only recommend it if you had no other way to pay the taxes. This bill was really in answer to concerns from the Eastern Panhandle where they have seen large leaps in value over the last few years, and they are trying to slow it down. I would recommend anyone considering it come in and talk to us about it first," Grimm said.
Another tax break option would be to apply for the senior citizen's tax credit, which is a refund of what you have paid over and above the homestead exemption. Those letters are mailed out in January by the state.
"It's like a state income tax refund, except the money from the lottery proceeds, and that might be a better way to go rather than this new deferment," Shaffer said.
Shaffer said many are probably not even aware of the new tax deferment act.
"It is confusing, and anytime you file a lien on a property that has financial implications and that is a big deal that people will have to contend with in the future. Although the lien does not have any interest applied to it, it's still a future liability someone down the line is going to have to clear up and that's always a concern for people," Shaffer said.
"A simpler more straight forward way to deal with this issue would have been to increase the homestead exemption. It is an ongoing concern and there is discussion every year about the exemption," Shaffer said.
Under the new law, an application must be filed for the tax deferment with the assessor's office on or before the first day of November following mailing of the tax ticket which includes the increase. Failure to file the application means the property owner waives that right for that tax year. The assessor is to make a ruling on the application within 30 days of receipt of the application. If denied, the homeowner has the right to appeal to the Wood County Commission. The assessor or property owner may appeal to the circuit court if dissatisfied with the commission ruling.
The amount of the deferred tax will continue on the property books until paid in full.
