Republican members of the St. Joseph County Council are proposing a new program to help seniors on fixed incomes stay in their homes. 

The plan was introduced Tuesday night at the council’s committee meeting. The proposal would let qualifying seniors defer a portion of their property taxes until their home is sold.

It is not a tax cut, but is a program allowing homeowners 55 and older, who have owned their homes at least five years, to delay between $100 and $500 in taxes each year.

The total deferral could reach $10,000 and would be repaid within 180 days after the home is sold or transferred. 

More information about the plan from the St. Joseph County Council:

SJC Senior Deferment Plan  AKA The Senior Stay-in-Your-Home Bill

* Taxpayer must be 55 or older and have a homestead on the subject property.
* Must have owned home at least 5 years.
* Requires two state forms (Deferral Application (by January 15 and Deferral Tax Loan
Agreement by March 1 – both in the year in which taxes are due).
* Pay property taxes directly to Treasurer, not escrow (no mortgages).
* Will apply 2026 taxes, paid 2027.
* Deferral of at least $100 per year and no more than $500 per year.
* County will not charge interest.
* Total cannot exceed $10,000 and is due within 180 days of the property being sold or
transferred due to death.
* Cannot participate if homeowner is underwater on mortgages.

More Specifics:

Different than a tax cut, this is a deferment. So, it will not cost the county significantly to
put this into place, it will simply give folks on limited incomes more time to pay their tax
bills.

The state statute sets the amount able to be deferred, between $100-500.

The state statute says it applies to the whole county.

The state statute says this must be passed by Nov 1 to be eligible for tax incurred in
2026, for property taxes payable in 2027.

The state statute says we can charge up to 4 percent interest or zero. The intention is to
help people struggling, so we’re not putting that into place, and it would also be more
burdensome for the auditor’s office to track.

The county, not the state, is requiring a homestead. This is not designed for people who
own multiple homes or rentals.

The state allows us to set limitations in terms of age, assessed value, veteran status,
and income limit. We are only using age.

We are not choosing to use assessed value or income limits because this can make the
bill too complicated to administer.

A study would cost money and involve a delay, money that could go to other programs
that need it.

We said that the homeowner cannot have a mortgage bc then the bank would have to
approve the deferral under state statute and then the homeowner couldn’t pay property
taxes through escrow.

DGLF already prepared two forms, a loan application and agreement, for use to
streamline the process, and our ordinance matches what the state legislature outlines.