37–1 Vote to Approve Property Tax Relief for Homeowners, Seniors and Small Businesses
Last week, Massachusetts State Senate voted to make housing more affordable in Massachusetts, approving new tools that give cities and towns the ability to lower the cost of property taxes and put money directly back in residents’ pockets.
“Last week my colleagues and I passed the vast majority of what was included in the Mayor’s home rule petition, with the exception of the proposed tax increase on small businesses,” said Senator Nick Collins. “The Senate acted to advance meaningful tax relief for seniors, homeowners, and small businesses across Boston and the Commonwealth.”
If signed into law, the measures together would prevent residents from being blindsided by sharp tax bill spikes, make it easier for seniors to access tax deferral programs, allow cities and towns to implement tax rebates, and create a new program for qualifying seniors to lower their tax bills.
S.2900, An Act relative to municipal tax relief, would allow cities and towns to offer enhanced rebates to taxpayers who already receive a local residential tax exemption. If a city or town takes advantage of this tool, the local government would determine residents’ eligibility and set its own thresholds around assets, income, or other factors.
In addition, amendments adopted as part of the bill would strengthen existing senior property tax relief by allowing municipalities to further expand eligibility, increase the personal property tax exemption to provide relief for individuals and small businesses, and extend the filing deadline for property tax abatements by 45 days for properties that have been improperly assessed.
“I’m pleased to see that the State Senate passed an increased elderly exemption as an amendment that will allow seniors to see their exemption tripled and eligibility requirements loosened to 50% AMI and the asset level raised to $80k for singles and $110k for couples.” said City Councilor Brian Worrell. “This is much-needed relief for our seniors and will help more of those on a fixed-income stay in their community, which is why the City Council also passed it unanimously last year as a standalone measure and has included it in other legislation.”
As part of this broader legislative effort, the Senate passed four other related measures to enhance municipal tax relief, expand senior exemptions, and protect homeowners and small businesses from rising costs. Collectively, these actions reinforce a statewide commitment to housing stability and affordability.
S.2899, An Act to prevent property tax bill shocks, gives cities and towns the ability to shield their most vulnerable taxpayers from the shock of an extraordinarily high tax bill in a year when the community’s residential property tax levy is rising by more than 10 per cent.
S.2901, An Act relative to senior property tax deferral, would expand eligibility for the Senior Tax Deferral program by lowering eligibility to seven years of state residency, instead of the current ten-year requirement, to keep more money in seniors’ pockets at a time when property values and tax bills are steadily climbing.
“Seniors across the Commonwealth have called for relief from rising property taxes that threaten their economic security and ability to age in their homes and communities,” said Rosa Bentley, President, Massachusetts Senior Action. “S.2901 addresses critical issues in the property tax deferral process that have prevented many from using this option. These changes will reduce barriers to this valuable program and meet a critical need in relief efforts. We look forward to further action to expand relief for those burdened and to enable revenue streams that support that expansion.”
S.2902, An Act authorizing the establishment of a means tested senior citizen property tax exemption, would make it easier for municipalities to offer local property tax exemptions to seniors. It builds on the success of the recently-increased Senior Circuit Breaker. The bill creates a statewide opt-in program that prioritizes longtime residents and gives controls to local authorities.
“We know that property taxes can be burdensome for many older homeowners,” said Jen Benson, Massachusetts State Director, AARP. “We appreciate the Massachusetts Senate taking action to help mitigate financial pressures so our older residents can stay in their homes and communities and continue to age with dignity.”
S.1948, An Act relative to veteran property tax work-off, bolsters the targeted tax relief offered to veterans and spouses of deceased or disabled veterans. Eligible residents could receive up to $2,000 per year in property tax reductions for municipal volunteer service, up from $1,500, under an optional local program.
“These policies largely align with the Mayor’s own proposals for Boston and reflect priorities we share,” Senator Collins added. “We disagree over specific components, but the broader goal of providing relief to residents is something we definitely agree on. I hope the Mayor will consider putting her support behind these proposals so we can move forward quickly and deliver the relief that Boston residents need.”
Now that they have been passed by the Senate, all five bills head to the House for further consideration
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