Senior Tax Exemption Provides Modest Savings

In these uncertain times, when those on low and fixed incomes have sought guidance for programs to help reduce costs, the senior tax exemption program leaves askance.

The town offers seniors small tax exemptions on their annual real estate bill that reduces their tax bills by a small amount of cash.

Two different types of tax reductions exist, too. The senior tax exemptions reduces the tax bill, while a senior tax deferral, defers payment but causes a recorded entry on the deed as a lien against the property taxed.

The exemption comes in two different types entitled 17E and 41D.

The 41D, allows a $750. exemption, and the 17E, reduces the tax bill by a mere $244, not enough to fill your car’s gasoline tank for a month anymore.

Neither exemption allows for a lot of financial relief either way. But, as some in the assessors’ office say, to some people even that amount makes a difference.

Qualifications vary between the two types of exemption applications.

The 17E grants apply to the elderly, in this case if the applicant has reached age 70 by July 1 of the current tax year in which he applies, a surviving spouse, or a minor whose father has died.

While the elderly applicant must reach at least age 70 for the category of exemption, there is no age minimum for the other two categories, minor whose father has died or the surviving spouse.

Further, the applicant must own and occupy the property for which they seek the tax exemption for at least 5 years and been legally domiciled in Massachusetts for 10 years.

There is no income requisite for this type of exemption, while in the next type an income category exists.

Finally, the 17E applicant’s total net worth of all assets aside from a house can have a total value of more than $55,775.

The 41D grants a $750 tax exemption and the qualifications are similar, but the applicant only has to reach age 65 by July 1 of the current tax year.

This applies only to the elderly category, and, as implied by the online description, there is no other option as in the 17E application.

The town website says that, "All sources of income (wages, recent income, social security, spouses social security, pension, spouses pension, bank interest and dividends, tax-free interest, etc.) minus a deductible minimum (which is determined annually by the Department of Revenue), must not exceed $23,061.00 if single or $34,590.00 if married."

No income sources apply to the previous exemption type, the 17E category.

The five year ownership and 10 residency requirements apply to this exemption, too.

In this exemption the applicant cannot own assets over $44,648 if single and $58,860 if married.