SB 1036 Summary

• Allows individuals age 59.5 and older or disabled persons to defer homestead property taxes by filing a claim with the county assessor between January 1 and October 15 annually.

• Establishes eligibility requirements including: property must be owner-occupied principal dwelling owned for at least 5 years, equity interest must be at least 10% of assessed value, and property must have adequate insurance coverage.

• Creates a state revolving account funded annually to advance deferred tax payments to county tax collectors, with deferred taxes becoming payable upon death, sale of property, or other specified events.

• Deferred taxes accrue interest at the average annual bond rate plus 2%, with the Director of Revenue holding a lien on the property for the deferred amount.

• Prohibits mortgage or land sale contracts executed after August 28, 2010 from containing clauses that prevent owners from applying for the property tax deferral program.