Will a lien be placed on my property if I participate in this assistance program?
Yes. A lien will be placed on your property in the amount of the deferred taxes plus any interest, which will be payable upon the transfer of the property.
What do you mean by “deferred taxes”?
These are taxes that will be due at a later date. In this case, the taxes and any accrued interest will come due when the property transfers. A property is considered transferred either upon the death of the person receiving the benefit or the date of sale, whichever is earlier.
What kind of assistance does this program provide?
Your taxes will be “frozen” at the amount you paid in the year prior to filing for this assistance. For example, if your annual taxes were $5,000 for the tax year 2017-2018 and the new tax amount for the upcoming year is $5,500, you could defer paying that $500 increase in taxes until the transfer of the property. This would remain true for all increases in taxes for as long as you qualify for/remain on the program.
What are the maximum Income Limits for Calendar Year 2017?
Married - $53,750
Single - $44,125
How is my income determined?
Your income is the adjusted gross income as defined in the Internal Revenue Code of 1952, as amended, plus the non-taxable portion of Social Security Benefits, Railroad Retirement Benefits, income from other tax exempt retirement annuity sources and income from tax exempt bonds.
What if I have medical expenses?
We will deduct medical expenses in excess of 5% of your adjusted gross income from the adjusted gross income adding back any offsetting insurance payments.
Do you consider my assets?
No. Your assets are not considered to qualify for this program.
Does this property have to be my primary residence?
Yes, the property here in Essex must be considered your primary residence to qualify for assistance.
What do you mean by the “Rule of 85”?
To qualify for this program an applicant must have been a resident of Essex for at least one year and have reached age 65 by the end of the previous calendar year, those two numbers (yrs. of residency + yrs. of age) must total at least 85.