Tax Deferral and Recovery for Poverty or Financial Hardship (Clause 18A)

State

Massachusetts

Year

2019

Variations in Receipt of Benefit

Other Variation in Receipt of Benefits

Benefit Type

Deferral

Benefit

Individual deferral and recovery agreements may be established annually between the taxpayer and the local board of assessors when persons who by reason of age, infirmity and poverty, or financial hardship resulting from a change to an active military status other than initial enlistment are unable to contribute fully. The amount of taxes deferred shall not exceed the proportion of the total value of the property owned by the applicant and the total amount of taxes due (including interest) shall not exceed 50% of the owner’s share of the property. The tax deferral and recovery agreement may not exceed 3 tax years, and the total taxes due (including 8% interest, charged annually, or a lower rate established by local option) must be paid in 5 equal payments over a 5 year period. The local municipality will place a lien on the property for the amount of taxes owed plus interest and lien filing fees. This lien must be satisfied upon the sale or transfer of the property or the death of the applicant, unless a surviving spouse also residing at the residence enters into a tax deferral and recovery agreement. Upon the sale of the property or the death of the applicant or surviving spouse, the interest rate on taxes owed will increase to 16%. Applicants must apply for the deferral annually by 1 April or 3 months after the actual tax bills are mailed for the fiscal year. A state tax deferral and recovery agreement must accompany the initial application.

How is Benefit Disbursed

Other

Eligible Property Type

Residential

Characteristics of Eligible Property

Only residential property owned by qualifying individuals is eligible for this incentive.

Eligibility Criteria

Active Military

Age

Disability

Homeowner

Principal Residence

Veteran

Surviving Spouse

Other Criteria

Description of Eligibility Criteria

Individual deferral and recovery agreements may be established annually between the taxpayer and the local board of assessors when persons whom by reason of age, infirmity and poverty, or financial hardship resulting from a change to active military status other than initial enlistment are unable to pay their property taxes and have been state residents for the preceding 10 years.

Local Option in Adoption of Program

Local government is unable to exercise an option

Local Option Regarding Program Features

Local option regarding program features

State Funding for Local Tax Loss

Local government covers all of its tax loss

Record ID

MA102_RR19

Footnotes

The property may not be sold or transferred unless the taxes have been paid with interest. Upon the death of the property owner, legal heirs have first priority to said property provided that they pay in full all back taxes and interest. If the heir is a surviving spouse, the spouse may enter into a tax deferral and recovery agreement with the board of assessors.

Sources

Mass. Gen. Laws ch. 59, §5 18A (in effect for 2019)
Massachusetts Department of Revenue State Tax Form 99: Property Tax Deferral for Reasons of Financial Hardship
[http://www.mass.gov/dor/docs/dls/ptb/pdfs/financial-hardship.pdf Accessed 12/20/2020]
View Archived Source

Massachusetts Department of Revenue State Tax Form 99-1: Property Tax Deferral and Recovery Agreement
[http://www.mass.gov/dor/docs/dls/publ/forms/tax-deferral-recovery.pdf Accessed 12/202020]
View Archived Source

Regístrese en nuestra lista de contactos

Back to top