(a) A municipality may by ordinance provide for the deferral of all taxes on property that is owned, in whole or in part, by an individual
- (1) who occupies and has occupied the property for at least 10 consecutive years as the individual's primary residence; and
- (2) whose income is at or below federal poverty guidelines for the state set by the United States Department of Health and Human Services.
- (b) An individual must apply for each year that a deferral is sought and supply proof of eligibility for the deferral for that year in accordance with requirements set out in the ordinance that authorizes the deferral. Taxes for a year that are deferred do not become payable until ownership of the property is transferred from the individual who obtained the deferral. A municipality that provides for a deferral of property taxes under this subsection may not impose interest on the taxes deferred between the time the deferral is granted and the time the taxes become payable.