Bill
H 3099
Local municipalities may offer a means-tested senior property tax exemption on primary residences, with amounts and eligibility set locally.
A. Overview
- Purpose: Establish a municipal option for a means-tested senior citizen property tax exemption. The exemption would reduce property taxes for eligible seniors on their primary residence, with the amount and eligibility rules set locally by each municipality that adopts the act.
- Scope: Local option; municipalities must vote to accept and implement the exemption. The exemption applies to Class One Residential parcels and includes residential condo units.
- Status: Hearing scheduled for June 16, 2025 (1:00 PM – 5:00 PM) in hearing room A-1. Referred to the Committee on Revenue in February 2025.
B. Key Provisions
- Section 1: Creates the option for municipalities to adopt the exemption. Adoption decisions are made by the legislative body at the time of adoption.
- Section 2: Exemption amount. For each qualifying parcel, there shall be an exemption from property tax set annually by the municipality’s Board of Assessors (or City Council/Select Board). The exemption is in addition to all other exemptions and applies to the taxpayer’s domicile only.
- Section 3: Eligibility criteria (six conditions):
1) Property owner’s prior year income would qualify for the circuit breaker tax credit under Chapter 62, Section 6(k).
2) Ownership by a single applicant 65+ or jointly by persons where at least one is 65+, with joint applicants 60+.
3) The property is the applicant’s domicile.
4) Applicant(s) have owned and domiciled in the municipality for at least 10 consecutive years prior to applying.
5) Assessed value is no greater than (a) the prior year’s circuit breaker threshold or (b) the municipality’s average single-family dwelling value, as adjusted by the Department of Revenue; determined by the adopting legislative body.
6) Local Board of Assessors approves the application.
- Section 4: Exemption amount framework. The exempted amount must be within 50% to 200% of the circuit breaker credit amount for which the applicant qualified in the prior year, as adjusted by the Department of Revenue. Total exemptions are allocated proportionally within the tax levy on residential taxpayers or via the Assessors’ Overlay account, as decided by the municipality’s legislative body.
- Section 5: Application process. Applicants must file annually with supporting income/assets documentation. The Board of Assessors may deny an exemption if assets are deemed excessive. If an applicant also has a Tax Deferral (Chapter 59, Section 5, Clause 41A), eligibility is reviewed to determine the circuit breaker credit amount.
- Section 6: Effective date. No exemption may be granted until the Department of Revenue certifies a residential tax rate for the applicable year.
C. Administration and Impact
- Administration: Local Boards of Assessors (or City/Select Boards) administer the exemption; annual determinations and approvals are required. Exemption interacts with existing exemptions and deferral programs.
- Impact on taxpayers: Senior homeowners who meet income and residency thresholds could receive a property tax relief on their primary residence, with the relief amount varying by year and municipality (50–200% of the circuit breaker credit). Inclusion of condos expands applicability.
- Fiscal/municipal considerations: Local adoption would affect property tax revenues and levy limits; municipalities would determine the annual exemption amount and funding method (levy proportion or overlay). The program relies on state certification of the residential tax rate each year.
D. Legislative History and Related Notes
- Related bill: HD 944 (replaces)
- Actions: Referred to the Committee on Revenue (2/27/2025); hearing scheduled (6/16/2025). Senate concurrence appears in the legislative actions noted for the bill’s docket.
E. Who is Affected
- Primary: Senior homeowners (and eligible joint owners) who own and occupy a qualifying residence in a adopting municipality, meet income eligibility, residency history (10 years), and asset criteria.
- Secondary: Municipal tax administration and potentially local taxpayers via changes in the tax levy allocations.
Compiled from official sources — confirm details with the bill’s official record.
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