Variations in Receipt of Benefit
Other Variation in Receipt of Benefits
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
Eligible Property Type
Characteristics of Eligible Property
Only residential property owned by qualifying individuals is eligible for this incentive.
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
[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