The high value of properties in Tennessee resulted from growth. It has created more home equity for many property owners. At the same time it has created challenges for seniors with limited income when it time for property reappraisals come. To solve these problems twenty three counties and thirty cities in Tennessee have enacted tax freeze and tax relief programs for properties. These programs will ensure seniors with low income able to live to age even if their property in location with high values in property values.
The Property Tax Relief Program?
Let`s consider tax relief for seniors. In Tennessee, under the Property Tax Relief Program low-income elderly homeowners, disabled people and veterans with disabilities, and their surviving spouses are provided property tax relief. State of Tennessee provides property tax relief payment for the homeowners who qualify for the mentioned program.
- Although you are eligible for the benefit, you have to pay all taxes on your property each year to receive your reimbursement.
- In order to participate in this program you have to submit an application to the trustee in your county after receiving your tax bill. Even owners of properties that are located within the city limits are allowed to apply, but they need to contact their official local tax collector to do so.
- In order to receive reimbursement you have to pay all your taxes and apply during 35 days after the bill’s due date.
Qualifications for tax relief
For property tax relief you have to:
- Be resident of Tennessee who paid all property taxes from the tax bill.
- Be 65 years old when you are applying. People who are disabled, veterans with disabilities and their surviving spouses also
- Be the owner of the house and use it as your main residence. Because you are allowed to get relief on one property a year. In case if you are owner of the mobile home as your primary residence, you are still qualifying. (In case if you own a mobile home and haven`t got a title, contact your country clerk to get that.)
- Be the person whose combined annual income is less than $29,180.
- If an applicant, his spouse and any other owner at home have combined annual income less than $29,180.
- Copy of your tax return,1099, W2 forms have to be submitted. And by law any of the following financial documents provided will be confidential.
Please note, if you for treatment reasons in hospital or friends, family home, you may still get tax relief, as long as you aim to return at home, your primary residence. So if you will be away from permanent residence, you have to notify the collecting official of any address changes or expected absences.
If you qualified for tax relief what do you get?
So, if you qualified for getting tax relief, then the reimbursement will depend on your county and property assessment.
- For seniors homeowners, the maximum market value on which relief is calculated will be on the first $28,300 of your primary residence. With another words, you will only get tax relief on the first $28,300 of your property’s value.
- After you have been qualified for getting tax relief, you will continue to receive tax relief on property through voucher. It will come with your other tax bill. Although the amount received may change from year to year.
- In order to receive relief, show the voucher to the collecting officials before the deadline date.
Property tax relief program for seniors and disabled veterans is state program, financed by appropriations from General Assembly. Application is received by tax collecting officials, including county trustees. Received applications processed and determined eligibility to the program by the Tax Relief section. Approximately, more than 100,000 individuals getting benefits from this $41,000,000 plus program yearly. The tax credit program was launched in 1973 as a result of the 1972 constitutional amendment to question 3.