The exponential increase in property taxes over the last two decades has been a hot topic nationwide, and seniors, including those who have paid off their mortgages, are not immune to the threat of losing their house.
"Retirees living on fixed incomes have struggled with rising property tax bills as their homes increase in value," says Charles Gilliland, research economist with the Real Estate Center at Texas A&M University.
Texas legislators have established a number of provisions designed to protect seniors, says Gilliland. All owners of qualifying homesteads are eligible for an exemption of at least $3,000 from county taxes in counties that levy taxes for roads and flood control and $15,000 from school district taxes. Seniors may qualify for an additional $10,000 exemption from school taxes, bringing their tax exemption to at least $25,000. Additional exemptions may be available for seniors if local taxing jurisdictions choose to adopt those.
Gilliland said the tax code provides further protection for seniors by limiting school taxes on their homesteads and has provisions to soften the property tax burden on the elderly such as paying taxes in installments and deferring collections.
What's more, if the tax burden becomes too onerous, Texas seniors may defer collection of taxes, stop a delinquent tax suit or even stop the impending tax sale of their homestead, if they follow the proper steps.
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Austin Business Journal - 9:43 AM CDT Monday, June 4, 2007 Baby boomers beware. As the first wave of the generation approaches age 65, rising property taxes could force many of them from their homes, warns a Texas economist.