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Under state statute, low-income seniors and low-income disabled adults with an annual income of $45,000 or less who own property in the proposed LID may defer or postpone payment of 100% of their special assessments for up to 20 years. Low-income adults with an annual income of $57,000 or less may defer or postpone payment of 50% of their special assessments for a period of 20 years. People experiencing economic hardship may also defer their assessments.
Unlike the State’s property tax exemption program, the State’s special assessment deferral program is not a reduction in the amount owed. The program postpones payment of special assessments. The amount deferred plus interest per year becomes a lien on the property by the state until the total amount deferred is paid. In addition, payments are subject to interest. Principal and accumulated interest are due upon sale or change of ownership, or at end of the deferral term. More information on the State’s assessment deferral programs can be found below and on the State’s website, https://dor.wa.gov/find-taxes-rates/property-tax/property-tax-exemptions-and-deferrals.
State statue also allows for a City assessment deferral program. The City of Seattle’s assessment deferral program would allow qualifying property owners to postpone LID assessment payments for up to 2 years. Property owners with combined household income at or below 200% of the poverty level would qualify for the City’s assessment deferral program. Like the state’s program, the deferred amount plus interest per year, becomes a lien on the property until the total amount deferred is paid.