Circuit Breaker Programs

• A "circuit breaker" program in property tax parlance is a reduction or waiver from property tax based on a taxpayers' inability to pay. As of 2008, according to a study published by the Lincoln Institute of Land Policy, 33 states and the District of Columbia offered one or more circuit breaker programs. Most of these states offer a program to homeowners age 65 and over. Some focus on an income threshold, below which taxes are reduced or capped. Some offer a reduction in property tax to the permanently disabled. Most programs freeze, reduce or defer taxes and do not waive them entirely.
  
  

Circuit Breaker for the Disabled

• Circuit breaker programs for the disabled commonly apply a threshold or list or definition to determine eligibility. Some programs combine disability with income thresholds. For instance, Illinois provides a tax reduction to disabled or elderly whose income does not exceed $21,218. In Washington state, you are eligible for a tax freeze and exemption from special levies if you are unable to work because of a disability and your income does not exceed $35,000.
  
  

Combining Circuit Breaker and Other Exemptions

• In addition to circuit breaker programs, many states offer blanket tax reductions to all homeowners, referred to as a homestead exemption. Some states also have a deferral program, which allows the county taxing authority or the state to place a lien on the property for the taxes and collects the tax upon sale of the property. This differs from a failure to pay required tax, which results in the forced sale of the property. The deferral program allows the homeowner to remain in the home for as long as she chooses. Whether your state does or does not offer a property tax reduction for the disabled, in some states you are usually eligible to take as many exemptions as you qualify for.
  
  

Filing an Application

• An exemption from property tax for the disabled is not automatic. Each tax assessment office has its own application process and threshold for inclusion. County assessors typically maintain a timeline for application and offer an appeal process should you disagree with the decision it renders regarding your application.