Arizona Revised Statutes 42-17301 through 42-17313 allow qualifying property owners to defer payment of property taxes. To qualify for the deferral both the property and the property owner(s) must meet specific requirements. A claim for deferral may be filed with the Assessor’s office after January 1, but before April 1 of the tax year for which the deferral is claimed.
TAX DEFERRAL IS NOT TAX FORGIVENESS
Qualifications for the Residence
A.R.S. 42-17301 defines residence to mean “real and personal property and improvements that constitute an owner-occupied dwelling that is classified as Class 3 pursuant to section 42-12003.” To qualify the residence must meet all the following requirements:
- It must be the taxpayer’s primary residence.
- It must not be income producing.
- It may not have a full cash value which exceeds $150,000.
- It must not be subject to a mortgage less than 5 years old.
- All property taxes due for preceding years must be paid.
Qualifications for the Property Owner
To qualify for tax deferral the individual must meet all the following requirements:
- Be at least 70 years of age.
- Shall own or be purchasing the residence under a recorded instrument of sale.
- Have lived in the current residence for 6 years, or lived in Arizona for the preceding 10 years.
- May not own, or have beneficial interest in other real property.
- In the case of a married couple, both spouses shall meet all requirements.
- The total Arizona taxable income of all persons residing in the residence for the taxable year immediately preceding the current year (year of the filing) may not exceed $10,000.
To apply for a deferral you must complete a “Claim for Deferral” form available in the Assessor’s office. The form must be accompanied by documentation supporting the above criteria. All information must be filed with the Assessor before April 1 of the tax year for which the deferral is claimed.
Deferrals are granted for one year at a time. A new claim must be filed for each subsequent year.
Remember a tax deferral is not tax forgiveness. The deferral only postpones the payment of taxes to some future date. All deferred taxes, accrued interest and costs become due and payable if the claimant dies, ownership of the residence is transferred or the property is no longer the residence of the claimant.
If you need more information or help completing the form for the Residential Tax Deferral Program, please contact the Assessor’s office.