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For the first time, Luzerne County residential property owners will have an opportunity to fill out a form seeking removal from the upcoming back-tax auction if they are experiencing a sudden hardship or are low-income elderly residents planning to remain in their home.
Attorney John Rodgers, head of county tax-claim operator Northeast Revenue Service Inc., proposed the hardship program for owner-occupied residences because he’s noticed more delinquent property owners asking judges to remove their properties from sales due to economic struggles, including some who appear in court in wheelchairs or with walkers.
Without a program establishing parameters to qualify for hardship exceptions, county judges are forced to make subjective rulings on which property owners should receive more time to repay.
“This will help the people who have a real need and are suffering and help us weed out the other cases,” Rodgers said.
Permitted by the state Real Estate Tax Sale Law, the program would apply to income-eligible property owners at least 65 years old or property owners under 65 who are experiencing a significant emergency situation preventing them from paying the debt.
Hundreds of residential properties are listed in the Aug. 27 free-and-clear auction, in which back taxes and other liens are forgiven.
Applications are available in the tax claim office on the first floor of the county courthouse in Wilkes-Barre and will be posted on the tax claim website, www.luzernecountytaxclaim.com. Those seeking removal from the Aug. 27 sale must submit applications by Aug. 17, Rodgers said.
Property owners who defaulted on a payment agreement with the tax claim office within the last three years are not eligible for the hardship program.
To qualify, senior citizens’ annual household income must be below the cap for a state property tax rent rebate, which is currently $35,000, not including half of Social Security income.
Qualifying senior citizens may receive an additional three months to settle the debt if they are able to pay during the extension, with the option for the solicitor’s office to grant further extensions based on financial circumstances.
Back-tax payments may be deferred for up to one year. After that, property owners may reapply with updated documentation.
The program for property owners under 65 allows extensions due to serious physical illness or injury, unemployment or a combination of illness/injury and prolonged unemployment. These problems must have “occurred or persisted” during the years taxes were delinquent or in the year immediately preceding the delinquency.
Approved participants may receive a repayment extension up to one year if the owners enter into a repayment agreement.
Property owners must submit proof of income and other records verifying their situation, Rodgers said. This information is not required for property owners who appear in court seeking removal from sales.