Current law allows a person who is at least 65 years old or who is
a person called into military service to elect to defer the payment of real property taxes. Current law also allows other residential real property owners to defer the payment of a portion of real property taxes under certain circumstances.
For all 3 categories of taxpayers who are eligible to defer the payment of real property taxes, current law specifies that the property for which the deferral is claimed cannot be income-producing. Beginning in the 2023 property tax year, the bill specifies that the prohibition against the property being income-producing does not apply if the taxpayer claiming the deferral is at least 65 years old, is a person called into military service, or is the surviving spouse of such a taxpayer.
For a property owner called into military service or a property
owner who is not called into military service and is not at least 65 years old but is otherwise eligible to claim a property tax deferral, current law specifies that to be eligible for the property tax deferral, the total value of all liens of mortgages and deeds of trust on the property must be less than or equal to 90 percent of the actual value of the property (90 percent requirement). For property tax years commencing on or after January 1, 2023, the bill specifies that the 90 percent requirement does not apply if the owner of the property is a person called into military service and has a home loan guaranteed by the veterans administration of the United States.
