Elderly Persons
The amount of this exemption is $500. For eligibility, an individual must be 65 years or older as of July 1st of the tax year. In addition to owning and occupying the subject property, an individual must have been continuously domiciled in Massachusetts for the 10 years preceding the application and have owned and occupied the property or other property in Massachusetts for 5 years. A person may own this property solely, as a joint owner or as a tenant in common. The holder of a life estate also satisfies the ownership requirement.
Eligibility is also based on annual income and your whole estate. Gross receipts minus social security allowance must be less than $20,000 if you are single and $30,000 if married. Your whole estate less the value of the home cannot exceed $40,000 if single and $55,000 if married. The Assessors will require evidence of this, including copies of bank balances and all interest earned, as well as statements of all money earned and total amounts received from pensions.
Unlike an exemption which discharges a tax obligation, Clause 41A permits an elderly taxpayer to postpone payment of property taxes. A taxpayer who already receives a personal exemption is not precluded from seeking to defer the balance. If you qualify, you must enter into a written tax deferral and recovery agreement with the Newbury Assessors who put a lien on the property to be recorded at the Registry of Deeds. Joint owners and mortgagees must give prior written approval. The agreement requires the deferred taxes along with 8% annual interest be repaid in full (1) when the property is sold or transferred, (2) upon your death, or (3) upon the death of your surviving spouse (if he or she qualifies for a deferral and enters into a new tax deferral agreement). The interest rate goes up to 16% upon the date of death or transfer; 6 months thereafter, the treasurer may seek to foreclose the lien on the property if the deferred amount remains unpaid. Once the deferred taxes are repaid the lien is released.
You may file an application if you are:
- 65 years old or older
- Owned and occupied the property as your domicile
- Owned and occupied any property in Massachusetts as your domicile for at least 5 years
- Lived in Massachusetts for at least the prior 10 years
- Have an annual income not more than $40,000 (proof is required)
The amount of this exemption is $175. For eligibility, a surviving spouse or a minor with a parent deceased who owns and occupies the property as his domicile as of July 1st of the tax year. An elderly person 70 years old or over as of July 1st who has owned and occupied the property as his domicile for at least 10 years. A person may own this property solely, as a joint owner or as a tenant in common. The holder of a life estate satisfies the ownership requirement.
In addition, a person’s whole estate, real and personal, cannot exceed $40,000, excluding the total value of the subject property. This clause prescribes no limitation on annual income for exemption eligibility. An applicant must provide to the Newbury Assessors whatever information is required to establish eligibility. This information may include, but not be limited to birth certificates, evidence of domicile and income tax returns.