Massachusetts Property Tax Relief - Who Qualifies to save?

By
Real Estate Agent with RE/MAX Executive Realty 91362

Tax cut in Massachusetts Most in Massachusetts would never think there are actually tax programs available to save you money. After all we didn't get the name "Taxachusetts" for nothing.

Lately, it seems everywhere you turn there is bad news. The local Real Estate market has been down in the dumps, the stock market has taken a fairly big hit, the cost of oil and energy in general is out of sight, and there is talk of a recession.

With the exception of historically low mortgage interest rates, there have not been many reasons to get overly excited by the present shape of our economy.

Taxes have been an issue for years in Massachusetts. Especially some of the towns located in Metrowest MA that have had extremely high property appreciation rates.

Up until the last few years Real Estate in Metrowest Massachusetts was booming. Along with the increase in property values came higher tax bills. This has become a wide spread problem for the elderly and those on fixed incomes.

In Massachusetts there are programs available to help those in need of tax relief.

There are a few programs worth discussing including clause 41c for elderly residents, clause 17d which is an exemption for seniors, surviving spouses, and minors, clause 22 covering veterans, clause 37a which covers the blind and two others know as the Circuit Breaker and the standard tax deferral.

Below is an explanation of each one of these exemptions:

Clause 41C - Clause 41c is for elderly residents. Residents who are 65 years old by July 1 may qualify for a $1000 dollar tax credit. The income requirements for this program if single are $23,718 per year and assets not in excess of $40,000. If you are married the income requirement is less than $35,578 and assets not is excess of $55,000. The other requirement with 41c is that you have to be living in Massachusetts for the last ten years and owning/occupying property for the last five.

Clause 17D - Clause 17d is an exemption in the amount of $208.39. In order to qualify for 17d a senior must be 70 years old by July 1 and surviving spouses must be a widow or widower by July 1. For a minor to qualify for this program they must have a deceased parent and own the property. In all of these circumstances the total worth may not exceed $40,000 excluding assessed home value.

Clause 22 - There are various exemptions for veterans and their spouses ranging from $400-$1000. In order to qualify you must have certification of a war related disability and also not have been dishonorably discharged.

Clause 37A - Clause 37a applies to those who are legally blind as of July 1. The tax credit is $500. In order to qualify you must also be registered with The Massachusetts Commission for the blind.

 

Tax Deferral- Residents 65 years or older can defer all or a portion of their taxes at a rate of 5% interest. In order to qualify residents must have lived in MASS for the past ten years and owned/occupied their home for the last five years. Gross annual income must not exceed $40,000. This a a program that not many people are aware of. In my home town of Hopkinton MA the town places when the deferral is approved and payment is made upon the sale of the home.

The Circuit Breaker - This exemption is available to residents age 65 and over whose property taxes exceed 10% of their income. This figure includes water and sewer bills.

 

These are great programs that are available in Hopkinton MA and other Metrowest Massachusetts communities. I suspect that if more people knew about these options they would take advantage of them. Hopefully a few people will read this and I will end up saving them a few dollars.

It would be great if there were other programs such as these that more people in Metrowest Massachusetts could take advantage of. The cost of living here is high and there are others besides seniors who could use the help. 

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About the Author: The above Real Estate information for Massachusetts Property Tax Relief was providedRE/MAX Executive Realty Milford Mass Real Estate by Bill Gassett, a Nationally recognized leader in his field. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-435-5356. Bill has helped people move in and out of Hopkinton MA and other Metrowest towns for the last 23+ Years.

Thinking of selling your home? I have a passion for Real Estate and love to share my marketing expertise!

Selling your home in Metrowest Massachusetts see Metrowest Massachusetts Real Estate. Want to have MLS access to beat other buyers to your dream home? Sign up with no obligation at my MLS Property Finder Site.

I service the following towns in Metrowest MA: Hopkinton, Milford, Upton, Southboro, Westboro, Ashland, Holliston, Mendon, Hopedale, Medway, Grafton, Franklin, Northbridge, Uxbridge, and Framingham MA.

 

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Tean Wong 02/23/2010 09:53 AM
Topic:
Lending / Financial
Location:
Massachusetts
Groups:
New England Professionals
Massachusetts
Posts to Localism
MA REALTORS
Local Expert
Tags:
hopkinton ma real estate
metrowest ma real estate
hopkinton ma realtors

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Rainer
123,025
Julie Neerings~Lifting Hearts ♥ Building Dreams~
Agent Referral - Salt Lake City, UT
Bill what a very informative post for MA residence regarding tax relief. You have provided such clear information that will leave each reader with a wealth of knowledge. 
Jan 31, 2008 06:35 AM #1
Rainmaker
1,022,903
Bill Gassett
RE/MAX Executive Realty - Hopkinton, MA
Metrowest Massachusetts Real Estate
Julie - Thanks. I am willing to bet there are a lot of people that are not aware of these programs. Heck I have been in Real Estate for years and did not become aware of them until recently.
Jan 31, 2008 06:38 AM #2
Rainer
29,042
Martinelli Caputi
Martinelli Caputi & Associates, Ltd. - Warwick, RI
& Associates, Ltd.

Bill:  Kudos to you for providing this information.  There are so many benefits out there that are often overlooked by our friends in the Bay State. 

 P.S. - Go Pats!  ;)

Feb 01, 2008 05:12 AM #3
Rainmaker
1,022,903
Bill Gassett
RE/MAX Executive Realty - Hopkinton, MA
Metrowest Massachusetts Real Estate
Rich - Thanks for your comments. Coming from a respected Real Estate attorney, I really appreciate it.
Feb 01, 2008 05:46 AM #4
Rainer
70,763
Lori Liveston
Virtual Homes, Real Estate - Waltham, MA

Thanks so much Bill!  This is great information.  65 + is an underserved demographic in many respects and those on a fixed income can afford rising property taxes the least.  Thanks for getting this out there. 

Feb 23, 2010 05:36 AM #5
Anonymous
Linda Hirschfeld

Hi Bill, my mother-in-law has been deferring her property tax for the past 8 years with permission from Washington Mutual, her previous lender.  However when JP Morgan Chase bought out Wamu, they paid off her deferred taxes and now demands that she pay it back in 5 years!  This will quadruple her payment at 83 years old how will she be able to stay in the home she has lived for 4 or more decades????  After a year of fighting and the town agreeing to pay the monies back to JP Morgan they have refused to put her back into deferral and refused the check back simply because it is not their policy to allow customers to defer their taxes and have the town as 1st lien holder on the deed.  Keep in mind she owes a tiny fraction of what the house is worth and has had no problem with her annual application until her mortgage was sold.  Without chosing JP Morgan Chase and having no choice in this matter, her home is threatened with foreclosure if she does not meet the demands of her "new" lender!  What do you say about this??? please email me at shirsch80@comcast.net. I would appreciate your response.

Feb 22, 2011 10:44 AM #6
Rainmaker
1,022,903
Bill Gassett
RE/MAX Executive Realty - Hopkinton, MA
Metrowest Massachusetts Real Estate

Hi Linda - I will send you a private email.

Feb 22, 2011 10:55 AM #7
Rainer
51,304
Lucas Taylor
Keller Williams Miami Beach - Miami Beach, FL
Thank you for the great education. I learned so much from your post.
Aug 10, 2012 12:16 PM #10
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Rainmaker
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Bill Gassett

Metrowest Massachusetts Real Estate
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