Options are out there for those with tax trouble

By Shelby Sebens
Staff Writer

Having trouble paying your property taxes?

Though they're limited, you do have some options. But take note: Any taxes due Monday must be paid by then to avoid delinquency.

Homestead exemption: People who have an income less than $25,000 and are either disabled or age 65 and older qualify for this exemption. You have to apply by June 1 to obtain the exemption for next year's property taxes, Brunswick County Tax Administrator Tom Bagby said. The exemption excludes from taxation 50 percent of your home's value or $25,000, whichever is higher. To apply for the exemption in Brunswick County, call the tax office at 253-2829. To apply for the exemption in New Hanover County, call 798-7300 or pick up a form at 230 Government Center Drive, Suite 190 at the information center. You will be asked to submit proof of income for 2007 to apply for 2008.

Payment plans: If you know you are going to have trouble paying your taxes, you can set up a payment plan with the county tax office. But you will be charged a state-mandated interest rate. It is 2 percent the first month and three-quarters of a percent for the following months on the outstanding balance. Bob Glasgow, New Hanover County tax administrator, encourages people to set that up as early as possible before the delinquency date. He said he has fewer than 100 people on payment plans in New Hanover County for their 2007 tax bills. In Brunswick County, 225 people are using payment plans to pay their taxes.

Reverse mortgage: If you are at least 62 years old, you can tap the equity in your home with this type of loan, though the money drawn out would have to repaid with interest when you die or the home is sold. To learn more about reverse mortgages, go to www.aarp.org/money/revmort.

Selling out: An unfavorable option for most is selling your home and moving. And in today's market it could be difficult to get the value you want. New Hanover County registered the lowest number of home sales in November since 2002, according to the Wilmington Regional Association of Realtors Web site. Susan Lacy, the association's president, said she has not seen property owners deciding to sell their homes in New Hanover County because they can't pay taxes. "I have not seen an exodus (of) people because of the tax revaluation in New Hanover County," she said.

New exemption on the way: In 2009, something called the "circuit breaker" exemption will go into effect, Bagby said. Like the homestead exemption, it will be for elderly or disabled people who make $37,500 or less. They'll be able to have their taxes capped at a certain percentage of their income, deferring the balance to the future.