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Benefits
If you qualify under Clause 41C exemption, your assessor will grant
you a deduction of $500 from your tax bill. These exemptions provide
the greatest benefit to a senior citizen homeowner.
If you do not qualify for one of the Clause 41exemptions, you may
be eligible for one of the Clause 17 exemptions. These would provide
you with a deduction of $175 from your tax bill.
Eligibility Requirements
Age and Status
You are a single person who is a sole owner or a joint owner who
shares ownership with other person(s). You must be 70 years or older
before the beginning of the fiscal year, July 1, for which an exemption
is sought.
You and your spouse are joint owners. Either spouse must be 70 years
or older before the beginning of the fiscal year, July 1, for which
an exemption is sought.
You are a married person who is a sole owner. You must be 70 years
or older before the beginning of the fiscal year, July 1, for which
an exemption is sought.
Ownership and Occupancy
You must have owned and occupied as principal residence any real
property in Massachusetts for five years including ownership and
occupancy of present property on July 1 in the year of application.
Massachusetts must have been your place of domicile for the preceding
ten years. A surviving spouse inheriting the property must have
occupied the property for five years.
Real Estate and Personal Property
Total worth may not exceed one of two options.
Option 1 allows a total worth of $17,000 for a single person or
$20,000 for a married couple, excluding assessed value of domicile
as of July 1 in year of application.
Option 2 allows a total worth of $40,000 for a single person or
$45,000 for a married couple, including the assessed value of the
domicile. If there is joint ownership with a person not a spouse,
the whole estate, real and personal, of each joint tenant or tenant
in common must be less than $12,000 for a single person or not exceed
$15,000 if married, including the assessed value of the domicile.
Clause 41C
For a single person who is a sole owner or a joint owner who shares
ownership with others, total worth should not exceed $28,000 (if
married - $30,000), excluding assessed value of domicile as of July
1 in the year of application. Only the portion, if any, which produces
income and exceeds two dwelling units must be included.
Income Eligibility
For single person - less than $13,000
For married couple - less than $15,000
You may deduct the minimum annual social security payment* from
your gross income receipts if your gross receipts include payments
from social security, railroad retirement or a federal, state, county,
municipal or district retirement or pension plan. Ordinary business
expenses and losses may be deducted from gross income receipts,
but not personal or family expenses.
*The minimum annual social security payment rate changes yearly.
It is determined by the Department of Revenue and is available from
your Board of Assessors.
Joint Ownership
Joint ownership with persons not your spouse. If you or you
and your spouse own property jointly with other person(s), you may
apply for that portion of the exemption which corresponds to the
proportion of the property that you or you and your spouse own.
However, unless each joint owner meets the requirements for income
and total worth for a single person or married couple, whichever
is applicable, no joint owner is eligible.
If you are unable to qualify for an exemption under any of the
clauses described in previous pages, or if these exemptions do not
help you enough in paying your real |estate taxes, you might consider
applying for a tax deferral under Clause 41A.
A deferral permits you to delay payment on property taxes.
If you qualify for a Clause 41A tax deferral, you enter into an
agreement with your local assessor to defer payment of all or part
of your taxes plus eight percent interest up to fifty percent of
your interest in the property valuation.
Taxes in every year may be deferred until you reach a point where
the unpaid taxes plus interest due are equal to fifty percent of
your interest in the property at full and fair cash value. When
that point is reached, although you may no longer defer payment
on current and future taxes, the unpaid taxes and interest to date
together with interest which will continue to accrue on the unpaid
taxes may remain unpaid until the property is sold or until one's
death. Upon one's death the deferral may be continued by your surviving
spouse, if he/she qualifies, or the taxes may be paid by your heirs
or your estate. You can, of course, repay total deferred taxes at
any time before then. Upon your death, if your surviving spouse
does not continue to defer, or if the property is sold prior to
your death, the interest rate goes up to sixteen percent, and the
taxes must be paid in order to release the lien that was placed
on the property while there were unpaid deferred taxes. If the taxes
are not paid within six months of death or sale, the local treasurer
may seek to foreclose the lien on the property if the deferred amount
remains unpaid.
Age and Status
You are single, or if married, your spouse is not an owner.
You must be 65 years or older by July 1 of the year in which application
is made. You and your spouse are joint owners. Either spouse must
be 65 years or older by July 1 of the year in which application
is made. You, age 65 or older, or you and your spouse, either of
whom is 65 years or older by July 1 of the year in which application
is made, own property jointly with other person(s). You are a single
person who is a joint owner sharing ownership with other person(s).
You must be 65 years or older by July 1 of the year in which application
is made.
Ownership and Occupancy
Applicant(s) must have owned and occupied as your domicile any
real property in Massachusetts (including present property) for
five years. Massachusetts must have been your domicile for the preceding
ten years.
Real Estate and Personal Property
Not applicable.
Income Eligibility
From all sources in calendar year preceding year in which application
is made, not to exceed $20,000. A community may adopt a higher maximum
qualifying gross receipts amount but such amount shall not exceed
$40.000.
A surviving spouse inheriting property must have occupied it or
other real property for five years. The surviving spouse who otherwise
qualifies may choose to continue to defer taxes. However, the total
of taxes deferred by both spouses together with interest thereon
may not exceed fifty percent of their interest in the property valuation.
Payment of a deceased spouse's deferred taxes shall not be required
during the life of a surviving spouse of any age who inherits the
property and who enters into a tax deferral and recovery agreement.
If you or your spouse own property jointly with other individuals
you may apply for the deferral. The deferred taxes with interest
at eight percent in this case are not to exceed one half of the
full and fair cash value of the proportion of this property owned
by you or you and your spouse.
Contact your local Board of Assessors for an application form.
You must apply each year for an exemption or deferral. Generally,
you can receive only one exemption, so submit the application for
the exemption which will provide the greatest benefit. However,
since Clause 41A is a deferral of taxes, you may use a Clause 41A
deferral in conjunction with an exemption for which you qualify.
Applications under Clause 41, Clause 41A, Clause 41B or Clause
41C must be filed with your local Board of Assessors on or before
December 15 in each year. If the actual, not preliminary, property
tax bill is mailed after September 15, you have three months from
the date the bill is first mailed in which to apply. In the year
of local acceptance of Clause 41C the community allows an additional
45 days from the date of acceptance to apply unless a later date
for applying is allowed by another statute.
In addition to your local Board of Assessors, your local Council
on Aging may be able to help you fill out the forms. Some councils
employ tax specialists to provide such assistance.
Joint Ownership
If two or more people own property each can apply, and if the
person is qualified, each will be entitled to his or her exemption.
Consult your local Board of Assessors.
Clauses 41A and 41C
How to Apply for a Tax Exemption or Deferral
Contact your local Board of Assessors for an application form. You
must apply each year for an exemption or deferral. Generally, you
can receive only one exemption, so submit the application for the
exemption which will provide the greatest benefit. However, since
Clause 41A is a deferral of taxes, you may use a Clause 41A deferral
in conjunction with an exemption for which you qualify.
Applications under Clause 41A and Clause 41C must be filed with
your local Board of Assessors on or before December 15 in each year.
If the actual, not preliminary, property tax bill is mailed after
September 15, you have three months from the date the bill is first
mailed in which to apply. In the year of local acceptance of Clause
41C the community allows an additional 45 days from the date of
acceptance to apply unless a later date for applying is allowed
by another statute.
In addition to your local Board of Assessors, your local Council
on Aging may be able to help you fill out the forms. Some councils
employ tax specialists to provide such assistance.
Joint Ownership
If two or more people own property each can apply, and if the person
is qualified, each will be entitled to his or her exemption. Consult
your local Board of Assessors.
The information above is editted from the Citizen
Information Service website.
William Francis Galvin
Secretary of the Commonwealth
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