Sending a well-written hardship letter to a bank or government agency is one way for an individual or family that is undergoing financial strain because of unusual circumstances to get relief. The hardship needs to be genuine, and the agency will often require proof of hardship, but if it can be proved, a homeowner can get a deferral of property tax for one year in most states. This doesn’t mean the tax is forgiven. It is not, and the government will expect the tax to be paid the next year along with that year’s tax, unless another deferral is approved.
The reasons may vary according to state, but the main legitimate reasons to defer property taxes are:
• Activated military personnel
• Unemployment
• Disability or illness
• Death in the family
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The rules may vary from state to state. If the person is a senior citizen or disabled, there may be a special program for them in their state. Most states offer programs for deferring, exempting and reducing property tax for certain people who qualify and for institutions. Some states offer a property tax reduction program, and some of the programs that exist in certain states that allow deferrals or exemptions are:
• Homeowners property tax deferral program for people who have owned their home for five years or more
• Non-profit organizations may be exempt from federal taxes but not state taxes. This can change if the organization only uses the property for activities that are specifically exempted by the state legislature
• Widows or widowers of veterans with low annual income
• Senior citizens who are at least 60 years of age
• Disabled persons who are retired from gainful employment because of the disability
• Long-time occupants
• Widespread natural disaster that caused damage to the
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They will be expected to make both payments. If a homeowner is having difficulty paying his or her property taxes every year, it is recommended to make an escrow arrangement with their mortgage lender. In this case, the homeowner pays a little extra each month and the mortgage lender pays the property tax every year. The homeowner doesn’t need to come up with a lump sum every year.
The hardship letter should be short and to the point. It is not necessary to exaggerate the hardship, but it should be clearly stated. The letter should be addressed to the county assessor. If the applicant doesn’t know the name, they can call the assessor’s office and ask.
Below is a sample of a hardship letter to defer property taxes. It should be written in formal business letter style and sent by certified mail with a return requested. This is to ensure that the county assessor has received the letter. All enclosures should be copies. No original documents should be sent unless they are specifically required by the assessor’s office.
Name of Applicant
Address of Applicant
City, State, Zip Code