WeVote
Log In

Bill

Bill

H 5526

An Act authorizing the town of Holliston to establish a means-tested senior citizen property tax exemption for debt exclusion construction projects

194th Legislature (2025-2026) Introduced by James Arena-DeRosa

Holliston may authorize a means-tested senior property tax exemption equal to up to 40% of the prior year’s circuit breaker, funded by debt-exclusion project debt service.

Senate concurred
0
WeVote Research Nonpartisan
Bill Summary · H 5526

Overview

  • Bill: H 5526
  • Session: 194th (Massachusetts)
  • Topic: Local option for Holliston to establish a means-tested senior citizen property tax exemption tied to debt-exclusion construction projects
  • Sponsor: Representative James C. Arena-DeRosa (Holliston)

Purpose: Authorize the Town of Holliston to create a means-tested, senior citizen property tax exemption related to debt-exclusion-funded construction projects, with eligibility and exemption amounts determined locally.

Main Purpose and Intent

  • Allow Holliston to implement a senior property tax exemption for residents who are 60–65+ and meet income/asset criteria, specifically tied to the actual borrowing costs (principal and interest) of debt-exclusion construction projects funded by the town.
  • The exemption would reduce the yearly property tax liability for eligible parcels, up to an amount equal to the actual debt service (borrowing costs) in the given fiscal year, applied to the taxpayer’s domicile.

Key Provisions and Changes

  • Section 1: Exemption Scope

    • Applies to each qualifying Class One residential parcel in Holliston.
    • Exemption amount equals, or is less than, the annual debt service (principal + interest) for a debt-exclusion-funded construction project.
    • Exemption is applied to the taxpayer’s domicile only.
    • Exemption is in addition to other exemptions allowed by law.

  • Section 2: Eligibility Criteria (means-tested)

    • The Board of Assessors may deny an exemption if the applicant has excessive assets.
    • Qualifying real property criteria include:
    • Owned and occupied by a person whose prior year income would make them eligible for the circuit breaker (G.L. Chapter 62, §6, sub d/k).
    • Ownership by a single applicant aged 65+ or joint ownership by individuals aged 60+ (at least one joint owner aged 65+).
    • Domicile of the applicant(s) in Holliston.
    • Applicant(s) have owned and domiciled in Holliston for at least 10 consecutive years prior to applying.
    • Maximum assessed value (MV) of the domicile is not greater than the prior year's MV used for circuit breaker qualification (as adjusted annually by DOR).
    • Board of Assessors approves the application.

  • Section 3: Amount Determination

    • The Select Board must annually set the exemption amount.
    • The amount must be between 10% and 40% of the circuit breaker credit for which the applicant qualified in the prior year.
    • Total exemptions are allocated proportionally within the town’s residential tax levy.

  • Section 4: Application Process

    • Eligible residents must file annually with the Holliston Board of Assessors using a form and supporting income/assets documentation, by a deadline set by the Assessors.
    • The application must be filed each year the applicant seeks the exemption.

  • Section 5: Certification Requirement

    • No exemption can be granted until the Massachusetts Department of Revenue certifies a residential tax rate for the applicable year where the total exemption amount is raised via a burden shift within the residential tax levy.

  • Section 6: Sunset and Reauthorization

    • Exemption expires 3 years after the act’s effective date.
    • Holliston may reauthorize for another 3-year period via a vote of the town’s legislative body.

  • Section 7: Effective Date

    • Takes effect upon passage.

Who Would Be Affected

  • Target Beneficiaries: Senior or near-senior homeowners (primarily 60–65+ or older, depending on ownership structure) who are long-term Holliston residents, with limited assets and income, who meet the circuit breaker eligibility thresholds.
  • Property Types: Class One residential parcels, including single-family homes and condominiums within Holliston.
  • Local Officials: Holliston Select Board (setting annual exemption percentage), Board of Assessors (determining eligibility and processing applications).

Procedural and Timeline Notes

  • Local approval: The bill as introduced notes that local approval is required (House petition with local acceptance of debt-exclusion funding).
  • Revenue/Administration: The exemption relies on an approved debt-exclusion project’s annual debt service amount; the town must coordinate with the Department of Revenue (DOR) for rate certification.
  • Sunset: The exemption is temporary, lasting up to 3 years per cycle, with potential three-year renewals by town vote.
  • Referral: Referred to the Massachusetts House Committee on Revenue (as of action history).

Potential Impact

  • Financial Relief: Provides targeted property tax relief to eligible seniors for the portion of taxes attributable to debt-exclusion projects.
  • Fiscal Impact on Town: Exemptions would reduce the residential tax levy revenue; exemptions must be allocated proportionally, requiring careful budgeting and assessment.
  • Equity Measures: Means-testing and asset/earnings criteria aim to limit benefits to those with greater need and long-standing Holliston residency.
  • Administrative Burden: Requires annual applications, assessment of assets/income, and coordination with the DOR for rate certification.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.