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Chapter 59, Section 5 Clause 41A - Elderly Tax Deferral
Allows seniors 65 years of age or older who meet certain income and other requirements to defer all or a portion of their real estate taxes.
Eligibility:
- Age 65 or older
- Own and occupy property as of July 1st
- Must have been domiciled in Massachusetts for five years
- Gross receipts cannot exceed $40,000
What the Assessors can do:
- Defer all or a portion of the real estate tax, depending on ownership %
- Record a statement that applicant has entered into a Clause 41A
- Recovery and Deferral Agreement at the Registry of Deeds
- Total deferral, including interest, cannot exceed 50% of applicant's proportionate share of the property
Collection Procedures:
- Taxes deferred are treated as if secured by a tax title
- Recording fees are added to the taxes deferred interest accrues at 4% per annum
- Deferrals may be paid off at any time
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Chapter 59, Section 5 Clause 18A - Hardship Tax Deferral
Allows taxpayers who are experiencing temporary financial difficulties and who meet certain income and other requirements to defer their real estate taxes.
Eligibility:
- Own and occupy property as of July 1st
- Must have been domiciled in Massachusetts for ten years
- Must demonstrate a financial hardship, showing income assets, gross receipts for applicant, spouse and all other adult household members.
What the Assessors can do:
- Defer the real estate tax up to a maximum of three years
- Record a statement that applicant has entered into a Clause 18A
- Recovery and Deferral Agreement at the Registry of Deeds
Collection Procedures:
- Taxes deferred are treated as if secured by a tax title
- Recording fees are added to the taxes; deferred interest accrues at 8% per annum
- May pay the deferral taxes, plus interest in annual installments over a five-year period. First payment is due two years after the last year of deferral
Applications for these two exemptions must be filed with the Assessors within 3 months of the mailing of the actual tax bills
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