Massachusetts 2023-2024 Regular Session

Massachusetts Senate Bill S1841 Compare Versions

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

Old	New	Differences
1	1	1 of 1
2	2	SENATE DOCKET, NO. 1609 FILED ON: 1/19/2023
3	3	SENATE . . . . . . . . . . . . . . No. 1841
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Adam Gomez
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 :Adam GomezHampdenAdam Scanlon14th Bristol 1 of 7
16	16	SENATE DOCKET, NO. 1609 FILED ON: 1/19/2023
17	17	SENATE . . . . . . . . . . . . . . No. 1841
18	18	By Mr. Gomez, a petition (accompanied by bill, Senate, No. 1841) of Adam Gomez and Adam
19	19	Scanlon for legislation to establish a senior property tax deferral pilot program. Revenue.
20	20	The Commonwealth of Massachusetts
21	21	_______________
22	22	In the One Hundred and Ninety-Third General Court
23	23	(2023-2024)
24	24	_______________
25	25	An Act establishing a senior property tax deferral pilot program.
26	26	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
27	27	of the same, as follows:
28	28	1 SECTION 1. To provide for a senior tax deferral pilot program, the sum set forth in
29	29	2section 2, for the purposes and subject to the conditions specified in this act, are hereby made
30	30	3available, subject to the laws regulating the disbursement of public funds.
31	31	4 SECTION 2. MASSACHUSETTS DEPARTMENT OF REVENUE
32	32	5 XXXX-XXXX. For the Senior Property Tax Deferral Pilot Program established pursuant
33	33	6to section 15 of chapter 14 of the General Laws, which amounts shall be expended in the
34	34	7following tax years: (i) $8,700,000 for tax year 2023; (ii) $8,900,00 for tax year 2024; (iii)
35	35	8$8,900,000 for tax year 2025; (iv) $8,700,000 for tax year 2026; (v) $8,300,000 for tax year
36	36	92027; (vi) $7,800,00 for tax year 2028; (vii) $7,200,000 for tax year 2029; (viii) $6,600,000 for
37	37	10tax year 2030; (ix) $6,000,000 for tax year 2031; (x) $5,500,000 for tax year 2032; and (xi)
38	38	11$4,900,000 for tax year 2033…….$81,500,000 2 of 7
39	39	12 SECTION 3. Chapter 14 of the General Laws is hereby amended by adding the following
40	40	13section:-
41	41	14 Section 15. (a) The division of local services shall establish a senior property tax deferral
42	42	15pilot program pursuant to this section. The senior property tax deferral pilot program shall be
43	43	16comprised of a set of municipalities that amounts to approximately 10,000 households eligible
44	44	17for participation pursuant to this section in the pilot program and shall permit approximately
45	45	182,000 participants. In order for the senior property tax deferral pilot program to be representative
46	46	19of the Massachusetts population, the following criteria shall be met:
47	47	20 (1) the demographic makeup of the program participants shall be representative of the
48	48	21broader homeownership demographics in the commonwealth;
49	49	22 (2) the median household income of the participants shall be approximately the median
50	50	23household income for all Massachusetts homeowners; and
51	51	24 (3) the set of municipalities in the program shall consist of municipalities from various
52	52	25regions of the commonwealth.
53	53	26 (b) Notwithstanding any general or special law to the contrary, taxes on real property: (i)
54	54	27of a person 65 years of age or over and occupied by them as their domicile, (ii) of a person who
55	55	28owns the same jointly with their spouse, either of whom is 65 years of age or over, and occupied
56	56	29as their domicile, or (iii) of a person 65 years of age or over who owns the same jointly or as a
57	57	30tenant in common with a person not their spouse and occupied by them as their domicile, may be
58	58	31deferred to an amount determined as hereinafter provided; provided, however, that such person: 3 of 7
59	59	32 (1) has so owned and occupied as their domicile such real property or other real property
60	60	33in the commonwealth for 5 years; or
61	61	34 (2) is a surviving spouse who inherits such real property and has occupied such real
62	62	35property or other real property in the commonwealth as their domicile for 5 years and who
63	63	36otherwise qualifies pursuant to this clause.
64	64	37 In determining the total period of ownership of an applicant for exemption pursuant to
65	65	38this clause, the time during which the same property was owned by a spouse individually shall be
66	66	39added to the period during which such property was owned by said spouses jointly.
67	67	40 The board of assessors for each municipality shall include on every first-quarter property
68	68	41tax bill a check-box where homeowners may certify their eligibility for the deferral of taxation
69	69	42on real property and opt-in to deferral of taxes on said real property; provided, however, that in
70	70	43the case of real estate owned by a person jointly or as a tenant in common with a person not such
71	71	44person's spouse, the exemption shall not exceed that proportion of total valuation which the
72	72	45amount of such person's interest in such property bears to the whole tax due. Homeowners shall
73	73	46be required to opt-in and certify their eligibility for this program annually. The board of assessors
74	74	47shall grant such exemption provided that the owner or owners of such real property have entered
75	75	48into a tax deferral and recovery agreement with said board of assessors on behalf of the city or
76	76	49town. The said agreement shall provide:
77	77	50 (1) that no sale or transfer of such real property may be consummated unless the taxes
78	78	51which would otherwise have been assessed on such portion of the real property as is so exempt
79	79	52have been paid, with interest, at a rate to be calculated by the division which shall be equal to the 4 of 7
80	80	53borrowing and administrative costs of the program plus 0.5 per cent, no later than the beginning
81	81	54of the fiscal year to which the tax relates;
82	82	55 (2) that the total amount of such taxes due, plus interest, for the current and prior years
83	83	56does not exceed 60 per cent of the owner's proportional share of the first $1,000,000 of the
84	84	57assessed value of such real property;
85	85	58 (3) that upon the demise of the owner of such real property, the heirs-at-law, assignees or
86	86	59devisees shall have first priority to said real property by paying in full the total taxes which
87	87	60would otherwise have been due, plus interest; provided, however, if such heir-at-law, assignee or
88	88	61devisee is a surviving spouse who enters into a tax deferral and recovery agreement pursuant to
89	89	62this clause, payment of the taxes and interest due shall not be required during the life of such
90	90	63surviving spouse. Any additional taxes deferred, plus interest, on said real property pursuant to a
91	91	64tax deferral and recovery agreement signed by a surviving spouse shall be added to the taxes and
92	92	65interest which would otherwise have been due, and the payment of which has been postponed
93	93	66during the life of such surviving spouse, in determining the 60 per cent requirement of
94	94	67subparagraph (2);
95	95	68 (4) that upon receipt of the taxes due, plus interest, the municipality shall remit the funds
96	96	69to the division;
97	97	70 (5) that if the taxes due, plus interest, are not paid by the heir-at-law, assignee or devisee
98	98	71or if payment is not postponed during the life of a surviving spouse, such taxes and interest shall
99	99	72be recovered from the estate of the owner; and 5 of 7
100	100	73 (6) that any joint owner or mortgagee holding a mortgage on such property has given
101	101	74written prior approval for such agreement, which written approval shall be made a part of such
102	102	75agreement.
103	103	76 In the case of each tax deferral and recovery agreement entered into between the board of
104	104	77assessors and the owner or owners of such real property, said board of assessors shall deliver a
105	105	78copy of said agreement and a copy of the property tax bill for the fiscal year which is being
106	106	79deferred to the division. Upon receipt of said agreement and said property tax bill, the division
107	107	80shall send to the city or town an amount equal to the deferred taxes and record with the registry
108	108	81of deeds of the county or district in which the city or town is situated a statement of their action
109	109	82which shall constitute a lien, pursuant to section 37 of chapter 60, upon the land covered by such
110	110	83agreement for such taxes as have been assessed pursuant to the provisions of this section, plus
111	111	84interest as provided herein. Notwithstanding any special or general laws to the contrary, a lien
112	112	85filed pursuant to this section shall continue until the deferred taxes, plus interest, have been
113	113	86recovered pursuant to this clause. A lien filed pursuant to this section shall not be subsequent to
114	114	87any other mortgage. The statement shall name the owner or owners and shall include a
115	115	88description of the land adequate for identification. Unless such a statement is recorded the lien
116	116	89shall not be effective with respect to a bona fide purchaser or other transferee without actual
117	117	90knowledge of such lien. The filing fee for such statement shall be paid by the city or town and
118	118	91shall be added to and become a part of the taxes due.
119	119	92 Nothing in this section shall prohibit the homeowner from paying the total taxes which
120	120	93would have otherwise been due, plus interest, before such deferred taxes and interest would
121	121	94otherwise become due pursuant to this section. 6 of 7
122	122	95 In addition to the remedies provided by this clause, the recorded statement of the
123	123	96assessors provided for in this clause shall have the same force and effect as a valid taking for
124	124	97nonpayment of taxes pursuant to section 53 of chapter 60, except that: (1) interest shall accrue at
125	125	98the rate provided in this clause for 1 year following the conveyance of the property or the death
126	126	99of the person whose taxes have been deferred, after which time interest shall accrue at the rate
127	127	100provided in section 62 of chapter 60; (2) no assignment of the municipality's interest pursuant to
128	128	101this clause may be made pursuant to section 52 of chapter 60; (3) no petition pursuant to section
129	129	10265 of chapter 60 to foreclose the lien may be filed before the expiration of 1 year from the
130	130	103conveyance of the property or the death of the person whose taxes have been deferred.
131	131	104 (c) The division shall report annually on the senior property tax deferral pilot program.
132	132	105The report shall include, but not be limited to: (1) the revenue credited to the fund; (2) the
133	133	106amount of fund expenditures attributable to the administrative costs of the fund; and (3) a list of
134	134	107the funds loaned to and repaid by each municipality. The report shall be provided to the chairs of
135	135	108the joint committee on municipalities and regional government and the clerks of the house of
136	136	109representatives and the senate.
137	137	110 (d) The division shall terminate the senior property tax deferral pilot program upon the
138	138	111enactment of a substantially similar statewide senior property tax deferral program; provided,
139	139	112however, that any homeowner participating in the senior property tax deferral pilot program shall
140	140	113automatically be enrolled in the senior property tax deferral program.
141	141	114 SECTION 4. To meet the expenditures necessary in carrying out this act, the state
142	142	115treasurer shall, upon request of the governor, issue and sell bonds of the commonwealth in an
143	143	116amount to be specified by the governor from time to time but not exceeding, in the aggregate, 7 of 7
144	144	117$81,500,000. All such bonds issued by the commonwealth shall be designated on their face,
145	145	118Senior Property Tax Deferral Pilot Program Act, and shall be issued for a maximum term of
146	146	119years, not exceeding 30 years, as the governor may recommend to the general court pursuant to
147	147	120section 3 of Article LXII of the Amendments to the Constitution. The bonds shall be payable not
148	148	121later than June 30, 2057. All interest and payments on account of principal on these obligations
149	149	122shall be payable from the General Fund. Bonds and interest thereon issued under this section
150	150	123shall, notwithstanding any general or special law to the contrary, be general obligations of the
151	151	124commonwealth.