With the rising cost of living in California and the lingering effects of the pandemic, many homeowners find it increasingly difficult to meet their financial obligations. Retirees on fixed incomes and individuals with disabilities are particularly vulnerable. To assist these homeowners, the State Controller’s Office (SCO) administers the Property Tax Postponement (PTP) Program, offering eligible homeowners the opportunity to defer their current-year property taxes on their primary residence.

Understanding the Property Tax Postponement Program

The PTP Program allows qualifying homeowners to defer payment of their property taxes. This deferment acts as a loan against the property, secured by a lien or a security agreement with the Department of Housing and Community Development for manufactured homes. While this provides immediate financial relief, it is important to note that these postponed taxes must eventually be repaid.

Eligibility Requirements Property Tax Postponement in California

To be eligible for the PTP Program, homeowners must meet the following criteria each year they apply:

  • Be at least 62 years of age, or blind, or disabled.
  • Own and occupy the property as their principal place of residence (floating homes and houseboats are not eligible).
  • Have a total household income of $51,762 or less.
  • Have at least 40 percent equity in the property.
  • Not have a reverse mortgage on the property.

Since these requirements can change, applicants should contact the SCO to verify current eligibility criteria.

California property tax deferment 2024-25 Program Timeline

  • Applications available: September 2024
  • Filing period opens: October 1, 2024
  • Filing period closes: February 10, 2025

Managing Delinquent and Defaulted Taxes

The SCO cannot cover delinquent or defaulted property taxes owed on a property being considered for postponement. Homeowners remain responsible for these taxes. However, they may still qualify to postpone current-year taxes. The total amount of defaulted property taxes will be considered when calculating the property’s equity.

For manufactured home owners, delinquent or defaulted property taxes disqualify them from the postponement program.

Interest Rate on Postponed Property Taxes

The interest rate for postponed taxes under the PTP Program is 5 percent per year, calculated on a simple interest basis. Interest accrues monthly until the total postponed property taxes plus interest are repaid.

Example: On a $1,000 tax postponement, the annual interest would be $50, or approximately $4.17 per month.

Securing Repayment with a Lien or Security Agreement

To secure repayment, the SCO places a lien against the real property or files a security agreement with the Department of Housing and Community Development for manufactured homes. This lien or agreement remains in effect until the total amount is paid in full. A one-time recording fee is added to the account to release the lien upon full repayment.

Responsibilities for Properties with Lenders/Mortgage Companies

For properties where taxes are paid through impound, escrow, or another account type, the SCO does not contact the lender. If approved for the PTP Program, the SCO pays the county tax collector directly. However, this does not reduce the homeowner’s monthly mortgage payment. Homeowners must continue to pay all amounts due and notify their lenders accordingly.

Refund of Paid Property Taxes

If an applicant is approved after already paying their current-year property taxes, or if the taxes were paid by a lender, the homeowner will receive a refund from the county tax collector.

Repayment Conditions

Homeowners can pay the full or partial balance of their deferred taxes at any time. However, the total postponed property taxes and accrued interest become immediately due under the following circumstances:

  • The homeowner moves from the property.
  • The property is sold or the title is transferred.
  • The homeowner passes away without a spouse, registered domestic partner, or other qualified individual continuing to reside in the property.
  • Future property taxes or other senior liens become delinquent.
  • The property is refinanced or a reverse mortgage is obtained.

Making Payments

Payments toward the postponed property taxes should be made payable to the California State Controller’s Office and mailed to:

California State Controller’s Office
Departmental Accounting Office – PTP
P.O. Box 942850
Sacramento, CA 94250-0001

To ensure proper credit, include the SCO account number or property address on the check or money order and any accompanying documents.

Account Statements and Contact Information

The SCO provides annual account statements, and homeowners can request a statement at any time by contacting the SCO.

For any questions, homeowners can reach out to the Controller’s team at (800) 952-5661 or via email at postponement@sco.ca.gov.

The Property Tax Postponement Program is a valuable resource for eligible California homeowners facing financial hardship. By deferring property taxes, the program offers immediate relief, allowing seniors, the blind, and disabled individuals to remain in their homes. Homeowners interested in the program should stay informed of the eligibility requirements and program timelines to take full advantage of this opportunity.

The California State Controller’s Property Tax Postponement 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.  Folks can learn more about the qualifications, filing period and complete an application on their website: https://www.sco.ca.gov/ardtax_prop_tax_postponement.html