Deferrals

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 $20,000

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

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.