Prior to the passage of Proposition 13 in 1978, it was not uncommon for seniors on fixed incomes who had already paid off their mortgages to nonetheless lose their homes because they couldn’t afford to pay their property taxes.
While Proposition 13 continues to protect millions of older Californians by providing reasonable and predictable property tax liability, for low-income seniors it may not be enough.
Voter approved local bonds and parcel taxes that are added to property tax bills above and beyond Proposition 13’s one percent cap have typically added hundreds of dollars a year to individual property tax bills across the state.
One of the state programs meant to help seniors over age 65, the blind, and the disabled stay in their homes is the Property Tax Postponement program or PTP.
The concept behind the Tax Postponement program is simple. A lien is placed against the home of an eligible individual and all property taxes are deferred.
Later, when the homeowner moves, the taxes are paid out of the sale of the home plus simple interest.
The program worked perfectly for 40 years. Beyond paying for itself, 6,000 homeowners from across California benefit from the Property Tax Postponement program.
Read more at the Los Angeles Daily News.