Property Tax Relief Applications are Due March 1

Property taxes are unaffordable for many New Hampshire homeowners who are older, have disabilities, and/or have low income. However, state law provides a variety of forms of property tax relief to help homeowners avoid delinquency and avoid losing their homes. Two of these programs have application deadlines of March 1.

Property Tax Deferrals:

Homeowners who are older or have disabilities and would suffer serious financial hardship or a possible loss of their property because of the burden of property taxes may be eligible for a property tax deferral. Under this program, the town can take a deferral lien, like a mortgage, on the home for the taxes owed. Once the town files a deferral lien, interest accrues at 5 percent per year on the deferred taxes. Although a tax deferral is like a mortgage, the deferred taxes and interest do not have to be paid unless the homeowner sells the property or dies.

To qualify, the taxpayer must be 65 or older, or eligible for Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) disability benefits; and have owned the home for at least five years if the request is based on age, or one year if the request is based on having disabilities; and be living in the home; and the total amount of taxes deferred does not exceed 85 percent of the property’s equity value.

The deadline for applying for a tax deferral with the tax assessor or selectmen is March 1, following the final tax bill for the year. (The tax deferral request is only for that one year’s taxes and not taxes still owed from earlier years.) To apply for a tax deferral, the taxpayer should use the New Hampshire Department of Revenue Administration (DRA)’s Form PA-30 “Elderly and Disabled Tax Deferral Application.” The form is available on the DRA’s website here: revenue.nh.gov/forms/2013/documents/pa-30.pdf

and can be requested by calling the Department of Revenue Administration at 230-5001. Town or city offices may have copies available upon request.

Property Tax Abatements Based on Hardship or Poverty:

property taxes may be reduced or waived (“abated”) by a town or city if the taxpayer is able to show “good cause, including the inability to pay the taxes, commonly called a “hardship” or “poverty” abatement.

The deadline for applying for an abatement with the assessors or selectmen is March 1, following the final tax bill for the year. Thanks to a recent change in the law, the assessors or selectmen now may also abate prior years’ taxes for good cause. Some municipalities mail to and require taxpayers to complete an inventory form by April 15 of the preceding year as a precondition to an abatement request.

To apply for a tax abatement, use the New Hampshire Department of Revenue Administration (DRA)’s “Taxpayer’s RSA 76:16 Abatement Application to Municipality.” The form is available on the Board of Land and Tax Appeals’ website here: nh.gov/btla/forms/documents/municipal-abatement.pdf

The form can also be requested by calling the Board of Tax and Land Appeals at 271-2578, and town or city offices may have copies available upon request.

Other Important Property Tax Relief Deadlines:

The deadline for applying for tax exemptions or credits (including exemptions for older homeowners, tax credits for veterans, and optional exemptions for people who are legally blind, deaf/hearing impaired, or who have other disabilities) for 2015 property taxes is April 15, 2015. Tax exemptions lower the amount of the property which is taxed, and credits directly reduce the taxes required to be paid.

The next filing period to apply for state education property tax relief is May 1, 2015 to June 30, 2015. Forms for these other types of property tax relief also are available on-line or by calling the Department of Revenue.

Additional Information:

Towns/cities will have until July 1 following the tax bill to decide whether to allow the tax deferral and/or abatement. If the taxpayer is unhappy with the town’s decision, the taxpayer can file an appeal with either the Board of Land and Tax Appeals or the Superior Court by September 1 of the year following the tax bill.

Homeowners who need advice about property tax relief can contact the Legal Advice and Referral Center (LARC) by submitting an on-line application at www.nhlegalaid.org, or by calling 603-224-3333. Persons at least 60 years old can contact New Hampshire Legal Assistance’s Senior Citizens Advice Line at 1-888-353-9944.

If you are a New Hampshire resident age 60 or older and need help with a civil legal problem, contact NHLA’s Senior Law Project (SLP) by phone at 1-888-353-9944. The SLP has the capacity to serve elders who are housebound, isolated or institutionalized.

New Hampshire Legal Assistance (NHLA), a non-profit law firm, represents elderly, disabled, and low-income homeowners in property tax cases. NHLA publishes a pamphlet that describes what property tax relief is available and the process for seeking assistance.

The pamphlet “Having Trouble Paying For Property Taxes?” is available at beta.nhla.org/assets/customContent/23/Property_Tax_Pamphlet_FINAL_Nov_2011.pdf

or can be requested by calling Donna at 224-4107, extension 2831, or by e-mail to dgiddings@nhla.org.

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