West Deer inches closer to tax deferral program for low-income residents, seniors

West Deer leaders are considering an ordinance that could prevent residents who make less than $35,000 a year from having to pay increased real estate taxes.

Supervisors on Wednesday approved formally advertising an ordinance that would establish a township real estate tax deferral program.

The program would add any township real estate tax increase as a lien on a person’s property.

It would not affect the property tax increases imposed by Deer Lakes School District.

“The board felt pretty strongly that this was a way to help ease the day-to-day cash flow burden on our low-income residents who also own homes,” said Supervisor Brandon Forbes, who pitched the idea. “They need to keep their homes up as well as buy groceries. We see this as a way to try to help out the best we can.”

People who apply for the program would continue to pay the same amount of property taxes they paid before any increase.

For example, if a person paid $400 in township property taxes, but the tax was increased by $50 to $450, that property owner would continue to pay only $400. The deferred taxes would be paid by the homeowner upon sale or transfer of the home.

The program would also apply to low-income homeowners and seniors whose taxes were increased because of improvements made to their property, appeals or county reassessments.

No interest or penalties would be assessed on any of the deferred taxes unless they weren’t paid upon sale or transfer of the home, solicitor Gavin Robb said.

One concern was how the program will be monitored to make sure participants meet the income threshold.

Robb said, “We did add a provision clarifying that the township manager or his designee will be the one to actually set up the sort of rules, regulations, applications and verification processes sort of outside the scope of this ordinance to ensure that those folks who are getting the benefit are actually qualified to get that benefit.”

Won’t impact credit rating

Before the vote to advertise the ordinance, Supervisor Beverly Jordan asked Forbes to clear up a misconception the program could potentially impact someone’s credit.

“I would hate for people not to take advantage because they think that by deferring this somehow it will affect their credit negatively and prevent them from getting credit if they need it,” Jordan said.

Forbes said the program is basically an agreement with the township and a homeowner. People can leave the program whenever they wish but will be responsible for paying the deferred taxes at that time. It will not affect someone’s credit.

“Unlike something like a credit card where you would accrue interest by deferring that payment, this is just the township saying … if there is an increase in taxes … you’ll be able to postpone that and hold that against the value of your home as you see fit,” Forbes said.

The ordinance is set to be voted on, and potentially adopted, at the supervisors’ Oct. 21 meeting. If approved, the program would begin in 2021.