C.__The current assessment.

4.__Additional assessment; escrow account.__As part of the program, the municipality may, by a majority vote of its voters and in the same manner by which taxes are set pursuant to section 505, impose an additional assessment on the residential property in that municipality.__If the additional assessment is approved, the revenue from the additional assessment must be deposited in a dedicated escrow account maintained by that municipality and used solely for the purpose of offsetting the temporary loss of revenue incurred because of participation in the program.

SUMMARY

This bill requires a municipality to establish a municipal property tax deferment program. The program would allow a resident who is at least 65 years of age and whose annual income is not more than 300% of the poverty level to pay property taxes on that person's residential property at the rate that was in effect on that person's 65th birthday. The assessment remains at that level until the residence is sold or transferred or the person elects to stop participating in the program. At that time, all property taxes assessed on the property but deferred because of participation in the program must be paid to the municipality.

In order to offset the temporary loss of revenue caused by persons participating in the program, the municipality may, upon approval of its voters, impose an additional assessment upon residential property. The revenue from the additional assessment must be kept in a dedicated escrow account and used solely for the purpose of offsetting the loss of revenue.