Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H2945 Compare Versions

Only one version of the bill is available at this time.

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2	2	HOUSE DOCKET, NO. 325 FILED ON: 1/11/2023
3	3	HOUSE . . . . . . . . . . . . . . . No. 2945
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Adam Scanlon
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act establishing a senior property tax deferral pilot program.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:Adam Scanlon14th Bristol1/11/2023Adam GomezHampden1/19/2023Bud L. Williams11th Hampden1/20/2023 1 of 7
16	16	HOUSE DOCKET, NO. 325 FILED ON: 1/11/2023
17	17	HOUSE . . . . . . . . . . . . . . . No. 2945
18	18	By Representative Scanlon of North Attleborough, a petition (accompanied by bill, House, No.
19	19	2945) of Adam Scanlon, Adam Gomez and Bud L. Williams relative to establishing a senior
20	20	property tax deferral pilot program. Revenue.
21	21	The Commonwealth of Massachusetts
22	22	_______________
23	23	In the One Hundred and Ninety-Third General Court
24	24	(2023-2024)
25	25	_______________
26	26	An Act establishing a senior property tax deferral pilot program.
27	27	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
28	28	of the same, as follows:
29	29	1 SECTION 1. To provide for a senior tax deferral pilot program, the sum set forth in
30	30	2section 2, for the purposes and subject to the conditions specified in this act, are hereby made
31	31	3available, subject to the laws regulating the disbursement of public funds.
32	32	4 SECTION 2. MASSACHUSETTS DEPARTMENT OF REVENUE
33	33	5 XXXX-XXXX. For the Senior Property Tax Deferral Pilot Program established pursuant
34	34	6to section 15 of chapter 14 of the General Laws, which amounts shall be expended in the
35	35	7following tax years: (i) $8,700,000 for tax year 2023; (ii) $8,900,00 for tax year 2024; (iii)
36	36	8$8,900,000 for tax year 2025; (iv) $8,700,000 for tax year 2026; (v) $8,300,000 for tax year
37	37	92027; (vi) $7,800,00 for tax year 2028; (vii) $7,200,000 for tax year 2029; (viii) $6,600,000 for
38	38	10tax year 2030; (ix) $6,000,000 for tax year 2031; (x) $5,500,000 for tax year 2032; and (xi)
39	39	11$4,900,000 for tax year 2033…….$81,500,000 2 of 7
40	40	12 SECTION 3. Chapter 14 of the General Laws is hereby amended by adding the following
41	41	13section:-
42	42	14 Section 15. (a) The division of local services shall establish a senior property tax deferral
43	43	15pilot program pursuant to this section. The senior property tax deferral pilot program shall be
44	44	16comprised of a set of municipalities that amounts to approximately 10,000 households eligible
45	45	17for participation pursuant to this section in the pilot program and shall permit approximately
46	46	182,000 participants. In order for the senior property tax deferral pilot program to be representative
47	47	19of the Massachusetts population, the following criteria shall be met:
48	48	20 (1) the demographic makeup of the program participants shall be representative of the
49	49	21broader homeownership demographics in the commonwealth;
50	50	22 (2) the median household income of the participants shall be approximately the median
51	51	23household income for all Massachusetts homeowners; and
52	52	24 (3) the set of municipalities in the program shall consist of municipalities from various
53	53	25regions of the commonwealth.
54	54	26 (b) Notwithstanding any general or special law to the contrary, taxes on real property: (i)
55	55	27of a person 65 years of age or over and occupied by them as their domicile, (ii) of a person who
56	56	28owns the same jointly with their spouse, either of whom is 65 years of age or over, and occupied
57	57	29as their domicile, or (iii) of a person 65 years of age or over who owns the same jointly or as a
58	58	30tenant in common with a person not their spouse and occupied by them as their domicile, may be
59	59	31deferred to an amount determined as hereinafter provided; provided, however, that such person: 3 of 7
60	60	32 (1) has so owned and occupied as their domicile such real property or other real property
61	61	33in the commonwealth for 5 years; or
62	62	34 (2) is a surviving spouse who inherits such real property and has occupied such real
63	63	35property or other real property in the commonwealth as their domicile for 5 years and who
64	64	36otherwise qualifies pursuant to this clause.
65	65	37 In determining the total period of ownership of an applicant for exemption pursuant to
66	66	38this clause, the time during which the same property was owned by a spouse individually shall be
67	67	39added to the period during which such property was owned by said spouses jointly.
68	68	40 The board of assessors for each municipality shall include on every first-quarter property
69	69	41tax bill a check-box where homeowners may certify their eligibility for the deferral of taxation
70	70	42on real property and opt-in to deferral of taxes on said real property; provided, however, that in
71	71	43the case of real estate owned by a person jointly or as a tenant in common with a person not such
72	72	44person's spouse, the exemption shall not exceed that proportion of total valuation which the
73	73	45amount of such person's interest in such property bears to the whole tax due. Homeowners shall
74	74	46be required to opt-in and certify their eligibility for this program annually. The board of assessors
75	75	47shall grant such exemption provided that the owner or owners of such real property have entered
76	76	48into a tax deferral and recovery agreement with said board of assessors on behalf of the city or
77	77	49town. The said agreement shall provide:
78	78	50 (1) that no sale or transfer of such real property may be consummated unless the taxes
79	79	51which would otherwise have been assessed on such portion of the real property as is so exempt
80	80	52have been paid, with interest, at a rate to be calculated by the division which shall be equal to the 4 of 7
81	81	53borrowing and administrative costs of the program plus 0.5 per cent, no later than the beginning
82	82	54of the fiscal year to which the tax relates;
83	83	55 (2) that the total amount of such taxes due, plus interest, for the current and prior years
84	84	56does not exceed 60 per cent of the owner's proportional share of the first $1,000,000 of the
85	85	57assessed value of such real property;
86	86	58 (3) that upon the demise of the owner of such real property, the heirs-at-law, assignees or
87	87	59devisees shall have first priority to said real property by paying in full the total taxes which
88	88	60would otherwise have been due, plus interest; provided, however, if such heir-at-law, assignee or
89	89	61devisee is a surviving spouse who enters into a tax deferral and recovery agreement pursuant to
90	90	62this clause, payment of the taxes and interest due shall not be required during the life of such
91	91	63surviving spouse. Any additional taxes deferred, plus interest, on said real property pursuant to a
92	92	64tax deferral and recovery agreement signed by a surviving spouse shall be added to the taxes and
93	93	65interest which would otherwise have been due, and the payment of which has been postponed
94	94	66during the life of such surviving spouse, in determining the 60 per cent requirement of
95	95	67subparagraph (2);
96	96	68 (4) that upon receipt of the taxes due, plus interest, the municipality shall remit the funds
97	97	69to the division;
98	98	70 (5) that if the taxes due, plus interest, are not paid by the heir-at-law, assignee or devisee
99	99	71or if payment is not postponed during the life of a surviving spouse, such taxes and interest shall
100	100	72be recovered from the estate of the owner; and 5 of 7
101	101	73 (6) that any joint owner or mortgagee holding a mortgage on such property has given
102	102	74written prior approval for such agreement, which written approval shall be made a part of such
103	103	75agreement.
104	104	76 In the case of each tax deferral and recovery agreement entered into between the board of
105	105	77assessors and the owner or owners of such real property, said board of assessors shall deliver a
106	106	78copy of said agreement and a copy of the property tax bill for the fiscal year which is being
107	107	79deferred to the division. Upon receipt of said agreement and said property tax bill, the division
108	108	80shall send to the city or town an amount equal to the deferred taxes and record with the registry
109	109	81of deeds of the county or district in which the city or town is situated a statement of their action
110	110	82which shall constitute a lien, pursuant to section 37 of chapter 60, upon the land covered by such
111	111	83agreement for such taxes as have been assessed pursuant to the provisions of this section, plus
112	112	84interest as provided herein. Notwithstanding any special or general laws to the contrary, a lien
113	113	85filed pursuant to this section shall continue until the deferred taxes, plus interest, have been
114	114	86recovered pursuant to this clause. A lien filed pursuant to this section shall not be subsequent to
115	115	87any other mortgage. The statement shall name the owner or owners and shall include a
116	116	88description of the land adequate for identification. Unless such a statement is recorded the lien
117	117	89shall not be effective with respect to a bona fide purchaser or other transferee without actual
118	118	90knowledge of such lien. The filing fee for such statement shall be paid by the city or town and
119	119	91shall be added to and become a part of the taxes due.
120	120	92 Nothing in this section shall prohibit the homeowner from paying the total taxes which
121	121	93would have otherwise been due, plus interest, before such deferred taxes and interest would
122	122	94otherwise become due pursuant to this section. 6 of 7
123	123	95 In addition to the remedies provided by this clause, the recorded statement of the
124	124	96assessors provided for in this clause shall have the same force and effect as a valid taking for
125	125	97nonpayment of taxes pursuant to section 53 of chapter 60, except that: (1) interest shall accrue at
126	126	98the rate provided in this clause for 1 year following the conveyance of the property or the death
127	127	99of the person whose taxes have been deferred, after which time interest shall accrue at the rate
128	128	100provided in section 62 of chapter 60; (2) no assignment of the municipality's interest pursuant to
129	129	101this clause may be made pursuant to section 52 of chapter 60; (3) no petition pursuant to section
130	130	10265 of chapter 60 to foreclose the lien may be filed before the expiration of 1 year from the
131	131	103conveyance of the property or the death of the person whose taxes have been deferred.
132	132	104 (c) The division shall report annually on the senior property tax deferral pilot program.
133	133	105The report shall include, but not be limited to: (1) the revenue credited to the fund; (2) the
134	134	106amount of fund expenditures attributable to the administrative costs of the fund; and (3) a list of
135	135	107the funds loaned to and repaid by each municipality. The report shall be provided to the chairs of
136	136	108the joint committee on municipalities and regional government and the clerks of the house of
137	137	109representatives and the senate.
138	138	110 (d) The division shall terminate the senior property tax deferral pilot program upon the
139	139	111enactment of a substantially similar statewide senior property tax deferral program; provided,
140	140	112however, that any homeowner participating in the senior property tax deferral pilot program shall
141	141	113automatically be enrolled in the senior property tax deferral program.
142	142	114 SECTION 4. To meet the expenditures necessary in carrying out this act, the state
143	143	115treasurer shall, upon request of the governor, issue and sell bonds of the commonwealth in an
144	144	116amount to be specified by the governor from time to time but not exceeding, in the aggregate, 7 of 7
145	145	117$81,500,000. All such bonds issued by the commonwealth shall be designated on their face,
146	146	118Senior Property Tax Deferral Pilot Program Act, and shall be issued for a maximum term of
147	147	119years, not exceeding 30 years, as the governor may recommend to the general court pursuant to
148	148	120section 3 of Article LXII of the Amendments to the Constitution. The bonds shall be payable not
149	149	121later than June 30, 2057. All interest and payments on account of principal on these obligations
150	150	122shall be payable from the General Fund. Bonds and interest thereon issued under this section
151	151	123shall, notwithstanding any general or special law to the contrary, be general obligations of the
152	152	124commonwealth.