Growth has resulted in higher property values throughout Middle Tennessee. Though this has created more home equity for many property owners, it has created challenges for income-limited seniors or disabled individuals when it comes time for property reappraisals. Twenty-three counties and thirty cities in Tennessee have adopted property tax freeze and property tax relief programs, which ensure low-income elderly or disabled homeowners are able to age in place when living in a part of town with higher than average growth in property values.
Property Tax Freeze Program
Homeowners qualifying for this program will have property taxes on their primary home frozen at a certain amount. As long as the homeowner continues to qualify and applies annually, the amount owed for that property will not change even if there is an increase. The deadline each year is April 5th. The base tax amount may change for the homeowner when improvements are made to the property, resulting in an increase in value, and/or when the homeowner sells the primary property and purchases another residence.
Qualifications:
Own your primary home and use as primary residence
Must be 65 by the end of the year in which you apply
Have an income from all sources that does not exceed the county income limit established for that tax year
Property Tax Relief Program
Tax relief is payment by the State of Tennessee to reimburse certain homeowners who meet the qualifications for a portion or all of the property taxes paid. You must still pay your property tax each year. The maximum market value on which the tax relief is calculated will be the first $23,500 of your primary residence in 2016 for elderly and disabled homeowners, or $100,000 for disabled veterans or their widow(er)s. Homeowners opting for this program will need to apply when they receive their property tax bill. The deadline for applications is 35 days after the bill’s due date. Taxes MUST be paid by this date.
Qualifications:
Must be 65 by the end of the year in which you apply OR a disabled homeowner, disabled veteran homeowner, or the widow(er) of a disabled veteran homeowner
Must own home and use as primary residence
Maximum income for applicant, spouse and all owners of the house is $31,190.
For more information about these programs, visit the following links:
Questions? Need help?
Takacs McGinnis Elder Care Law may be able to assist. Just give us a call at 615.824.2571.