Clause 41A
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Clause 41A
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(Tax Deferral)
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Own As Of July 1 - Applicant must own property as of July 1. Domicile As Of July 1 - Property must be applicant’s domicile as of July 1. Age Requirement - A qualified applicant must be at least 65 year old as of July 1. Filing Date - December 15th or within three months if the tax bill was issued after September 15th. Income Requirements - Gross receipts from all sources in the preceding calendar year cannot exceed $20,000. If the applicant is married, the combined marital gross receipts also cannot exceed $20,000. Other Requirements - In the first year unless there is a change in persons with property interest, as a prerequisite for the deferral, the qualified applicant must enter into a written tax deferral and recovery agreement. All parties with an interest in the property such as joint tenants and mortgagees must give written prior approval. The applicant must have been domiciled in Massachusetts for the ten preceding years. In addition, the applicant must have owned and occupied such real property, or other real property in Massachusetts as a domicile for at least five years. Miscellaneous - The applicant’s surviving spouse who qualifies may continue to defer taxes provided the surviving spouse enters into a tax deferral and recovery agreement. A surviving spouse who inherits the property must have occupied it or other real property in Massachusetts as a domicile for five years. The deferral is not a true exemption, and therefore, a taxpayer can use a deferral in conjunction with a personal exemption. Other - Clause 41A allows an elderly taxpayer to postpone payment of all or a portion of his or her real estate taxes each year at 8% simple interest per annum, provided the aggregate of deferred taxes and interest does not exceed 50% of the taxpayer’s proportional share of the fair cash value of the property. The deferred taxes and interest may be repaid at any time. However, payment in full upon sale of the property or the death of the taxpayer, if the surviving spouse does not continue to defer, is required. Upon the sale or death of the taxpayer, the interest rate increases from 8% to 16%. The Tax Collector may not institute foreclosure proceedings on the property for a period of six months if the deferred amount has not been paid. Board Of Assessors Requirements - A Statement of Entry into Tax Deferral & Recovery Agreement (Form 97-2) in conjunction with the parcel has to be recorded at the registry of deeds the first year only. If the parcel is registered land then the Statement of Entry into Tax Deferral and Recovery Agreement needs to be filed for registration instead of recording it at the Registry of Deeds. Notify the Tax Collector and Town Accountant of the amount deferred. Also forward copies of the Deferral and Recovery Agreement and the recorded statement to the Tax Collector the first year. Notify the taxpayer after the deferral has been approved using Property Deferred Certificate (Form 97-3). |
