Bill Allows Communities to Establish Means-Tested Tax Relief Programs

Provides local option property tax exemption for seniors...
State Representative Randy Hunt (R-Sandwich)

From the Office of State Rep. Randy Hunt (R-Sandwich)

BOSTON – The House of Representatives has passed legislation allowing cities and towns to establish a means-tested property tax exemption program for senior citizens.

House Bill 4001 was passed by the House on a unanimous vote of 150-0, with the support of State Representative Randy Hunt, R-Sandwich. The bill is modeled after similar tax relief programs offered in Reading, Sudbury and Wayland that are designed to help older residents living on fixed incomes remain in their homes.

“This local-option law gives communities another tool to assist senior citizens who wish to remain in their homes by reducing the impact of rising property taxes. By applying a means test, a town can be assured that its residents most in need are the ones who benefit,” observed Rep. Hunt. “People over 65 should also be familiar with the Senior Circuit Breaker Tax Credit, worth up to $1,080 on a 2017 Massachusetts income tax return, and their town’s property tax deferral program. Our office can assist with tapping into these benefits” said Representative Hunt.

Under the local option proposal, communities can offer property tax relief to qualifying seniors, based in part on the amount of the tax credit they were eligible to receive the year prior under the state’s Senior Circuit Breaker program. The actual amount of the tax exemption would be set annually by the local governing body.

House Bill 4001 sets specific guidelines applicants must meet to qualify for a tax exemption. Participation is limited to homeowners who are 65 or older, and have resided in the community for at least 10 consecutive years. If a tax exemption request is filed jointly, the second applicant must be 60 or older, and at least one of the applicants must meet the minimum residency requirement of 10 consecutive years.

Seniors must file annually to receive the exemption, which is subject to approval by the local Board of Assessors. The Board can deny an exemption if it determines the applicant has excessive assets.

House Bill 4001 also contains provisions sun-setting the property tax exemption program after three years. Communities that adopt the local option would be required to vote at three-year intervals to reauthorize the program.

The bill has been sent to Governor Charlie Baker for his signature


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