What
are Real Estate Exemptions?
A tax exemption
is a discharge from the obligation to
pay all or a portion of a tax. Exemptions
are conferred by the Legislature on particular
categories of persons or property.
A person
may be eligible to reduce all or a portion
of the real estate taxes assessed to the
person's domicile if he or she meets the
qualifications for one of the personal
property exemptions allowed under Massachusetts'
law. Qualifications vary, but generally
relate to age, ownership, residency, disability,
income or assets.
A person
may be eligible for a personal exemption
if he or she falls into any of the following
categories:
Blind persons
Veteran with a service connected disability
Surviving Spouse
Minor Child of Deceased Parent
Senior Citizen age 70 and older
Who
may file an exemption application?
A person
who meets all the qualifications for a
particular exemption as of JULY 1 must
apply on the properly approved forms for
an exemption. Also, an administrator or
executor of a person who qualified for
a personal exemption as of July 1 may
file the application.
When
and where must the application be filed?
The application
must be filed with the local Board of
Assessors any time after July 1 but no
later than three months after the actual
tax bills were mailed for the fiscal year.
If certification of the annual tax rate
is timely, the third tax bill is the actual
bill. The filing deadline cannot be extended
or waived by the Assessors for any reason.
The application is filed when received
by the Assessors. If an application is
not timely filed, a person loses all rights
to the exemption and the Assessors by
law cannot grant the personal exemption.
Must
the taxes be paid while the application
is processed?
Filing an
application for an exemption does not
stay the collection of a property tax.
In some cases, a person must pay the tax
when due in order to appeal the assessors'
denial of an exemption. Failure to pay
a tax when due may subject the person
to interest charges and collection action.
To avoid any additional charges or any
loss of rights, a person should pay the
tax assessed. If an exemption is granted
and the person had already paid the entire
year's tax, the person will receive a
refund of any overpayment.
When
must the Assessors act on exemption applications?
The Assessors
have three months from the date the application
is filed to act on it. An applicant will
be notified in writing whether an exemption
has been granted or denied. A person may
appeal a denial by the Assessors. The
disposition notice will provide further
information about appeal procedures and
deadlines.
What
personal exemptions may be available to
citizens of Everett?
The categories
of exemptions described below are grouped
according to Clauses in the General Laws.
Clause 37
Blind Persons
Clauses 22 through 22 E Veterans
Clause 41 D Elderly Persons
Clause 17 D Surviving Spouse, Minor Child,
or Elderly Person
VETERANS
EXEMPTIONS (CLAUSES 22 THROUGH CLAUSE
22 E AND PARAPLEGICS)
Veterans,
male or female, who served in the armed
forces of the United States for not less
than 90 days active service, at least
one day of which was for wartime service*,
and whose last discharge or release from
wartime service was under honorable conditions,
may be eligible for an exemption. (Check
with the Assessors for more particulars
on "wartime service" and dates
for qualifying military action specified
in the state statutes.
RESIDENCY,
DOMICILE & OCCUPANCY REQUIREMENTS
FOR VETERANS
An individual
must have been a Massachusetts domiciliary
prior to entering the service or have
lived in Massachusetts for not less than
5 years prior to applying for the exemption.
The veteran must occupy the property as
his or her domicile on July I of the tax
year.
DOCUMENTATION
FOR VETERANS
An applicant
for an exemption must provide to whatever
information is reasonably requires to
establish eligibility. This information
may include, but is not limited, to: (1)
Certification of war-service connected
disability from the Veterans Administration
or branch of the service from which separated.
(2) Evidence of domicile and occupancy.
OWNERSHIP
REQUIREMENTS FOR VETERANS
A qualifying
applicant must possess a sufficient ownership
interest in the domicile. To satisfy this
ownership requirement, the person's interest
must be worth at least $2000. Ownership
may be held jointly or in common.
A holder
of a life estate satisfies the ownership
requirement,
If the domicile
is held in trust, a person can only satisfy
the ownership interest if he or she is
a trustee or co-trustee of that trust
and possess a sufficient beneficial interest
in the domicile through the trust.
ELIGIBILITY
REQUIREMENTS AND EXEMPTION AMOUNTS FOR
EACH VETERAN CLAUSE
CLAUSE 22
($250.00)
This exemption
is available to the following classes
of persons: (1) Veterans with a war-service
connected disability of 10% or more as
determined by the Veterans Administration
or branch of the service from which separated.
(2) Veterans who have been awarded the
Purple Heart. (3) Gold Star mothers or
fathers. (4) Spouses and surviving spouses
of entitled to the exemption.
CLAUSE 22
A ($425.00)
This exemption
is available to veterans (and their spouses)
who: (1) Suffered in the line of duty
the loss or permanent loss of use of one
foot or hand or one eye. (2) Received
the Congressional Medal of Honor, Distinguished
Flying Cross, Navy Cross or Air Force
Cross. If the subject property is greater
than a single family house, only that
fraction of $350.00 which corresponds
to the segment occupied by the veteran
will be allowed.
CLAUSE 22
B ($775.00)
This exemption
is available to veterans (and their spouses)
who suffered in the line of duty the loss
or permanent loss of use of both feet
or both hands or both eyes. If the subject
property is greater than a single family
house, only that fraction of $700.00 which
corresponds to the segment occupied by
the veteran will be allowed.
CLAUSE 22
C ($875.00)
This exemption
is available to veterans (and their spouses)
who (1) suffered total disability in the
line of duty and (2) who received assistance
in acquiring "specially adapted housing"
which they own and occupy as their domicile.
If the subject property is greater than
a single family house, only that fraction
of $875.00 which corresponds to the segment
occupied by the v will be allowed.
CLAUSE 22
D ($350.00)
This exemption
is available to surviving spouses (who
did not remarry) of soldiers and sailors
who died in combat at the islands of Quemoy
and Matsu.
CLAUSE 22
E ($600.00)
This exemption
is available to vet who suffered total
disability in the line of duty and are
incapable of working. If the subject property
is greater than a single family house,
only that fraction of $525.00 which corresponds
to the segment occupied by the veteran
will be allowed.
PARAPLEGIC
(TOTAL EXEMPTION)
This exemption
is available to vet and surviving spouses
(who do not remarry) of such veterans
who are certified by the Veterans Administration
as paraplegic.
SURVIVING
SPOUSE, MINOR CHILD AND ELDERLY PERSON
EXEMPTION
(CLAUSE 17 D) AMOUNT $189.73
As previously
noted, acceptance by the Everett City
Council of this clause will permit the
application of this exemption to the Fiscal
1997 real estate tax bill.
This exemption
applies to (1) widows and widowers (2)
minor children with one parent deceased
and (3) persons 70 years of age or older
as of July I of the tax year.
DOCUMENTATION
REQUIREMENTS FOR CLAUSE 17 D
Applicants
for the Clause 17 D exemption must provide
the assessors whatever information is
reasonably required to establish eligibility.
This information may include, but not
be limited to: (I) Birth certificates.
(2) Evidence of domicile and occupancy.
(3) Income tax returns.
OWNERSHIP,
DOMICILE, & OCCUPANCY REQUIREMENTS
CLAUSE 17 D
To qualify
for Clause 17 D, an individual must own
and occupy the subject property as his
or her domicile for at least 5 years.
A person's interest in the domicile must
be worth at least $2000. A may own this
interest solely, as a joint owner or as
a tenant in common.
The holder
of a life estate satisfies the ownership
requirement.
If the domicile
is held in trust, a person can only satisfy
the ownership interest if he or she is
a trustee or co--trustee of that trust
and possess a sufficient beneficial interest
in the domicile through that trust.
INCOME AND
WHOLE ESTATE REQUIREMENTS FOR CLAUSE 17
D
There are
NO limitations on annual income for eligibility
under Clause 17 D.
The whole
estate value (excluding the total value
of the subject property, not to exceed
3 dwelling units, and any unpaid mortgage
balance on the property) cannot exceed
$40,000. For a property containing 4 or
more dwelling units, the value of that
portion exceeding 3 units must be included.
Included in the whole estate is the value
of other real estate and personal property
which includes bank accounts, stocks,
bonds, securities, motor vehicles and
trailers, and other non-exempt personal
property. The value of a person's cemetery
plots, wearing apparel and household furniture
and effects at the domicile should be
excluded from the calculation of the person's
whole estate for purposes of this clause.
BLIND
PERSONS EXEMPTION (CLAUSE 37) $437.50
RESIDENCY
REQUIREMENTS FOR BLIND PERSONS
The blind
must own the property separately or jointly
or as a tenant in common and occupy the
property as his or her domicile on July
I of the tax year. There is no apportionment
of this exemption if the ownership is
held jointly or as a tenant in common
with some other person other than a spouse.
The blind person receives the full amount.
ELIGIBILITY
REQUIREMENTS FOR BLINDNESS EXEMPTION
An individual
must annually give proof of blindness
by providing a certificate from the Commission
of the Blind attesting to a condition
of legal blindness. As an alternative
for the first year an exemption is sought,
a letter from a reputable physician certifying
blindness in accordance with the specifications
of the Commission for the Blind must be
provided.
ELDERLY
PERSONS EXEMPTION (CLAUSE 41 C) $500.00
RESIDENCY
REQUIREMENTS FOR ELDERLY EXEMPTION
An individual
must own and occupy the subject on July
I of the tax year. Also, an individual
must have been continuously domiciled
in Massachusetts for the 10 years preceding
the application and have owned and occupied
the property or other property in Massachusetts
for 5 years.
Ownership
may be a joint tenant or as tenant in
common with someone other than a spouse.
In which case the exemption is the same
proportion of $500.00 as one's ownership
interest in the property.
DOCUMENTATION
FOR ELDERLY EXEMPTION
An applicant
must supply the Assessors whatever information
is reasonably necessary to establish eligibility.
This information may include, but not
be limited to: (1) Birth certificates.
(2) Evidence of domicile and occupancy.
(3) Income tax returns.
AGE REQUIREMENTS
FOR ELDERLY EXEMPTION
An applicant
must have reached his/her 70th birthday
prior to July I of the tax year or if
property owned jointly with spouse, either
spouse has reached his/her 70th birthday.
ANNUAL INCOME
AND WHOLE ESTATE REQUIREMENTS FOR ELDERLY
EXEMPTION
Gross receipts
(minus a social security allowance) from
all sources in the preceding calendar
year must be less than $13,000 if single
and be less than $15,000 if married. Gross
receipts include, but are not limited
to, wages, pension allowances, retirement
benefits, interest and dividends, rents,
capital gains, and net profits from business
or profession.
The whole
estate value (less the value of the home
except for the value of any portion which
exceeds three dwelling units and produces
income) cannot exceed $28,000 if single
and $30,000 if married. Included in the
whole estate is the value of other real
estate and personal estate which includes
accounts, stocks, bonds, securities, motor
vehicles and trailers, and other non-exempt
personal property.
HARDSHIP
EXEMPTION (CLAUSE 18)
WHO MAY FILE
A CLAUSE 18 HARDSHIP EXEMPTION APPLICATION?
Any person
or persons "who by reason of age,
infirmity and poverty are in the judgment
of the Assessors unable to contribute
toward public charges" may upon proper
application and approval of the Assessors
receive a reduction of a portion or all
of the real estate taxes assessed. At
the time of the Gulf War a person called
into active military service and experienced
financial hardship was added to the list
of people who may apply for this exemption.
Generally, an applicant must be at least
65 years of age or older, but in some
circumstance a younger person or persons
might be eligible. If the applicant owns
the subject property jointly with others,
all joint owners must independently qualify
in order for the applicant to be eligible
for the exemption.
DOCUMENTATION
FOR HARDSHIP EXEMPTION
An applicant
must supply the Assessors with documented
evidence relating to the nature and history
of an infirmity and complete documentation
disclosing the financial circumstances
of the applicant, including income from
all sources.
PROPERTY
TAX DEFERRAL (CLAUSE 41 A)
This clause
is not actually an exemption but rather
it is a postponement of the payment of
real estate taxes. if an applicant qualifies,
the applicant must enter a tax deferral
agreement that requires the deferred taxes
along with interest be paid in full (1)
when the property is sold, (2) upon the
death of the person, or (3) upon the death
of the surviving spouse if he or she qualifies
for a deferral and enters into a new tax
deferral agreement Anyone having any legal
or beneficial interest in the property
must also approve the tax deferral agreement
AGE REQUIREMENTS
FOR TAX DEFERRAL
An applicant
must be at least 65 years of age as of
July 1 of the tax year.
DOMICILE,
OWNERSHIP AND OCCUPANCY REQUIREMENTS FOR
TAX DEFERRAL
The applicant
must have had a domicile or legal home
in Massachusetts for the preceding ten
years and must be domiciled as of July
1 in the property which is the subject
of the application.
The applicant
must have owned and occupied the subject
property or other real property the Commonwealth
as a domicile for at least five years.
The applicant
may own the property jointly with his
or her spouse or as tenants in common
with a person not his or her spouse.
The holder
of a life estate satisfies the ownership
provisions under this clause.
If the domicile
is held in trust, a person can only satisfy
the ownership interest if he or she is
a trustee or co-trustee of that trust
and possesses a sufficient beneficial
interest in the domicile through the trust.
SURVIVING
SPOUSE AND CONTINUATION OF TAX DEFERRAL
A surviving
spouse who qualities may continue to defer
taxes but must enter into a new 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 5 years.
INCOME
AND GROSS RECEIPT REQUIREMENTS FOR TAX
DEFERRAL
There are
no whole worth restrictions, but there
are income limitations for the tax deferral.
GROSS RECEIPTS:
An applicant's gross receipts from all
sources cannot exceed $20,000. If married,
combined gross receipts cannot exceed
$20,000. Ordinary business expenses and
losses, but not personal or family expenses
may be deducted. By local option of the
Everett City Council the amount of qualifying
gross receipts can be in to an amount
up to $40,000.
DEFERRAL
AMOUNT
A taxpayer
who qualifies may defer payment of all
or a portion of the taxes at 8 per cent
interest, provided the deferred taxes
and accrued interest do not exceed 50
per cent of the applicant's proportional
share of the fair value of the property.
APPLICATION
FORMS AND ADDITIONAL INFORMATION
Application
forms for the various exemptions are available
at the Everett Office. For additional
information or clarification regarding
the exemptions, please contact the office
at 617-394-2205
