Exemption Information


 

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Exemption Information

 

What is an exemption?

An exemption is a release from the obligation of having to pay taxes on all or part of a parcel of real property. Personal Exemptions are a reduction in taxes due to a particular personal circumstance and qualifications set forth in the Massachusetts General Laws. The burden is on the applicant to show that he or she falls within the expressed terms of the exemption provision. Exemptions are granted for one year only and an application must be filed to receive the exemption each year.

 

Full or partial exemptions are provided in the General Laws for the following persons:

Clause 37A Blind Exemption
Clause 41C Elderly Exemption
Clause 18 Hardship
Clause 17D Surviving Spouse (Widow/Widower), Minor Child of a Deceased Parent & Elderly
Clause 41A Tax Deferral
Clause 22 Veteran with Service Connected Disability
How do I get the forms for reimbursement? Download the forms required by the Commonwealth of Massachusetts for Reimbursement of Property Taxes Exempted.

 

For FY 2004 Taxes, applicants must meet the following requirements to be eligible for a Blind - Clause 37A exemption:

  • Have been declared legally blind as of July 1 of the current fiscal year.

  • Applicant must be registered with and obtain a certificate from the Massachusetts Division of the Blind as of July 1 of the current fiscal year or present a letter from their physician stating that the applicant was legally blind as of July 1 of the current fiscal year.

  • Have owned and occupied the property as of July 1 of the current fiscal year.

  • Exemption Amount Granted: Maximum $1,000

For FY 2004 Taxes, applicants must meet the following requirements to be eligible for an Elderly-Clause 41C exemption:

  • Have reached their 70th birthday prior to July 1 of the current fiscal year or if the property is jointly owned with a spouse, either spouse has reached his/her 70th birthday prior to July 1 of the current fiscal year.

  • Have owned and occupied the property as a primary domicile as of July 1 of the current fiscal year.

  • Have been domiciled in the Commonwealth for the preceding ten years and have owned and occupied said property or other real property in the Commonwealth for five years.

  • Provide a birth certificate.

  • Income verification- if single, gross income cannot exceed $13,000. If married, gross income cannot exceed $15,000. When computing the gross receipts of applicants who received income from either Federal Social Security or railroad retirement or government retirement plans, $3,361 is deducted from the receipts of single persons, and $5,042 is deducted for married couples.

  • Total Asset verification - if single, the whole estate both real and personal, minus the value of the domicile, cannot exceed $28,000. If married, the combined whole estate cannot exceed $30,000. Whole estate includes savings, stocks, bonds, and other real estate but does not include the assessed valuation of your residence, if it is of three dwelling units or less.

For FY 2004 Taxes, applicants must meet the following requirements to be eligible for a Hardship - Clause 18 exemption:

  • Have owned and occupied the property as of July 1 of the current fiscal year.

  • Shown inability to pay taxes due to age, infirmity, and poverty (All three are required):

  • Documents Required:

  • Documentation of financial Hardship
  • Social Security Income Verification
  • W-2 Forms
  • Rent Receipts
  • Unusual circumstances including, extraordinary expenses
  • Documentation of Medical Hardship
  • Verification from doctor or hospital
  • Receipts for medical bills etc.
  • Verification of age and work history
  • Financial Requirements: There is no limit on income or assets; however, applicant will be asked to complete several forms outlining:

    Size of household

Names, ages, job description, and salaries of adult children

Financial aid, if any, from adult children

Rental Income

Outstanding mortgages, etc.

PLEASE NOTE: Having income or assets will not automatically disqualify applicant from receiving this exemption. Each applicant is reviewed individually with attention given to the circumstances of his/her case.

Exemption Amount: Exemption may be all or a portion of taxes due

For FY 2004 Taxes, applicants must meet the following requirements to be eligible for a Clause - 17D Hardship exemption:

  • Have owned and occupied the property as of July 1 of the current fiscal year.

  • Have owned and occupied the property for 5 years.

  • The entire estate of the individual, excluding the value of the property, cannot exceed $40,000.

  • Provide the death certificate for the deceased spouse, which must be dated prior to July 1 of the current fiscal year (Surviving Spouse).

  • Provide a birth certificate with application for Minor Child clause.

  • Have reached the age of 70 and have owned the property for at least 5 years (Elderly).

  • Exemption Amount Granted = Minimum $175, Maximum $350

For FY 2004 Taxes, applicants must meet the following requirements to be eligible for a Tax Deferral - Clause 41A:

  • A tax deferral allows elderly taxpayers (over age 65),with annual incomes of less than $40,000 to defer payment on all, or a portion of their property tax.

  • This deferral is not an exemption.

  • The amount of the deferral, together with 8% annual interest on the deferred amount, must eventually be repaid when the property is either:

    Sold, or

    Transferred or

    Upon the death of the property owner.

  • The deferral becomes a lien on the property. A tax deferral should be considered when a taxpayer's current expenses make the continued ownership of his/her home difficult.

For FY 2004 Taxes, applicants must meet the following requirements to be eligible for a Veteran - Clause 22 exemption:

  • Have at least a 10% service connected disability.

  • Have owned and occupied the property as of July 1 of the current fiscal year.

  • Have lived in Massachusetts 6 months prior to entering service.

  • Have lived in Massachusetts for five consecutive years before filing for clause.

  • Must have certificate of proof from the Veterans Administration.

  • Exemption Amount Granted: Minimum $500 (most exemptions) Maximum $1,550.