Massachusetts 2023-2024 Regular Session

Massachusetts Senate Bill S1847 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. 1775 FILED ON: 1/19/2023
3	3	SENATE . . . . . . . . . . . . . . No. 1847
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Patricia D. Jehlen
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 relative to senior property tax deferral.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :Patricia D. JehlenSecond MiddlesexSusannah M. Whipps2nd Franklin2/2/2023 1 of 5
16	16	SENATE DOCKET, NO. 1775 FILED ON: 1/19/2023
17	17	SENATE . . . . . . . . . . . . . . No. 1847
18	18	By Ms. Jehlen, a petition (accompanied by bill, Senate, No. 1847) of Patricia D. Jehlen and
19	19	Susannah M. Whipps for legislation relative to senior property tax deferral. Revenue.
20	20	[SIMILAR MATTER FILED IN PREVIOUS SESSION
21	21	SEE SENATE, NO. 1885 OF 2021-2022.]
22	22	The Commonwealth of Massachusetts
23	23	_______________
24	24	In the One Hundred and Ninety-Third General Court
25	25	(2023-2024)
26	26	_______________
27	27	An Act relative to senior property tax deferral.
28	28	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
29	29	of the same, as follows:
30	30	1 SECTION 1. Section 5 of chapter 59 of the General Laws, as appearing in the 2020
31	31	2Official Edition, is hereby amended by striking out clause Forty-first A and inserting in place
32	32	3thereof the following :-
33	33	4 Forty-first A, Real property, to an amount determined as hereinafter provided, of a person
34	34	565 years of age or over and occupied by said person as their domicile, of a person who owns the
35	35	6same jointly with their spouse, either of whom is 65 years of age or over, and occupied as their
36	36	7domicile, or of a person who owns the same jointly or as a tenant in common with a person not
37	37	8their spouse and occupied by said person as their domicile; provided, that said person, or said
38	38	9person and their spouse, if married, had, during the preceding year, gross receipts from all
39	39	10sources not in excess of the amount of income for a single individual who is not head of 2 of 5
40	40	11household or spouses filing a joint return, respectively, as determined by the commissioner of
41	41	12revenue for the purposes of subsection (k) of section 6 of chapter 62. In computing the gross
42	42	13receipts of such an applicant or of such an applicant and their spouse, if married, ordinary
43	43	14business expenses and losses may be deducted but not personal and family expenses.
44	44	15 Any such person may, on or before the deadline for an application for exemption under
45	45	16section 59, apply to the board of assessors for an exemption of such real property from taxation
46	46	17during such year; provided, however, that in the case of real estate owned by a person jointly or
47	47	18as a tenant in common with a person not such person's spouse, the exemption shall not exceed
48	48	19that proportion of total valuation which the amount of such person's interest in such property
49	49	20bears to the whole tax due. During each fiscal year, the board of assessors shall notify a property
50	50	21owner, in writing and via telephone, who has previously entered into a tax deferral and recovery
51	51	22agreement pursuant to this subsection, of the deadline to apply for exemption. The board of
52	52	23assessors shall grant such exemption provided that the owner or owners of such real property
53	53	24have entered into a tax deferral and recovery agreement with said board of assessors on behalf of
54	54	25the city or town. The said agreement shall provide:
55	55	26 (1) that no sale or transfer of such real property may be consummated unless the taxes
56	56	27which would otherwise have been assessed on such portion of the real property as is so exempt
57	57	28have been paid, with interest at the rate of the greater of (i) the municipality’s most recent
58	58	29municipal bond rate if the municipality has bonded within the preceding 3 years or (ii) the most
59	59	30recent bond rate of the commonwealth, or such lesser rate as may be determined by the
60	60	31legislative body of the city or town, subject to its charter, no later than the beginning of the fiscal
61	61	32year to which the tax relates; 3 of 5
62	62	33 (2) that the total amount of such taxes due, plus interest, for the current and prior years
63	63	34does not exceed 50 per cent of the owner's proportional share of the full and fair cash value of
64	64	35such real property;
65	65	36 (3) that upon the demise of the owner of such real property, the heirs-at-law, assignees or
66	66	37devisees shall have first priority to said real property by paying in full the total taxes which
67	67	38would otherwise have been due, plus interest; provided, however, if such heir-at-law, assignee or
68	68	39devisee is a surviving spouse who enters into a tax deferral and recovery agreement under this
69	69	40clause, payment of the taxes and interest due shall not be required during the life of such
70	70	41surviving spouse. Any additional taxes deferred, plus interest, on said real property under a tax
71	71	42deferral and recovery agreement signed by a surviving spouse shall be added to the taxes and
72	72	43interest which would otherwise have been due, and the payment of which has been postponed
73	73	44during the life of such surviving spouse, in determining the 50 per cent requirement of
74	74	45subparagraph (2);
75	75	46 (4) that if the taxes due, plus interest, are not paid by the heir-at-law, assignee or devisee
76	76	47or if payment is not postponed during the life of a surviving spouse, such taxes and interest shall
77	77	48be recovered from the estate of the owner; and
78	78	49 (5) that any joint owner or mortgagee holding a mortgage on such property has given
79	79	50written prior approval for such agreement, which written approval shall be made a part of such
80	80	51agreement.
81	81	52 In the case of each tax deferral and recovery agreement entered into between the board of
82	82	53assessors and the owner or owners of such real property, said board of assessors shall forthwith
83	83	54cause to be recorded in the registry of deeds of the county or district in which the city or town is 4 of 5
84	84	55situated a statement of their action which shall constitute a lien upon the land covered by such
85	85	56agreement for such taxes as have been assessed under the provisions of this chapter, plus interest
86	86	57as hereinafter provided. A lien filed pursuant to this section shall be subsequent to any liens
87	87	58securing a reverse mortgage, excepting shared appreciation instruments. The statement shall
88	88	59name the owner or owners and shall include a description of the land adequate for identification.
89	89	60Unless such a statement is recorded the lien shall not be effective with respect to a bona fide
90	90	61purchaser or other transferee without actual knowledge of such lien. The filing fee for such
91	91	62statement shall be paid by the city or town and shall be added to and become a part of the taxes
92	92	63due.
93	93	64 In addition to the remedies provided by this clause, the recorded statement of the
94	94	65assessors provided for in this clause shall have the same force and effect as a valid taking for
95	95	66nonpayment of taxes under the provisions of section 53 of chapter 60, except that: (1) interest
96	96	67shall accrue at the rate provided in this clause until the conveyance of the property or the
97	97	68expiration of 1 year after the death of the person whose taxes have been deferred, after which
98	98	69time interest shall accrue at the rate provided in section 62 of chapter 60; (2) no assignment of
99	99	70the municipality's interest under this clause may be made pursuant to section 52 of chapter 60;
100	100	71(3) no petition under section 65 of chapter 60 to foreclose the lien may be filed before the
101	101	72expiration of 6 months from either the conveyance of the property or the expiration of 1 year
102	102	73from the death of the person whose taxes have been deferred.
103	103	74 The board of assessors shall notify a property owner who has entered into a tax deferral
104	104	75and recovery agreement pursuant to this subsection at least annually, in writing, of the current
105	105	76balance owed under the agreement. 5 of 5
106	106	77 SECTION 2. Section 1 of this act shall apply to taxes assessed for fiscal years beginning
107	107	78on or after July 1, 2025.