WeVote
Log In

Bill

Bill

H 5298

An Act relative to senior property tax credits

194th Legislature (2025-2026) Introduced by Lydia Edwards and 7 co-sponsors

The bill ties senior property tax credits to tax deferrals, allowing clawbacks if deferrals default and requiring annual municipal reporting to the DOR.

Bill reported favorably by committee and referred to the committee on House Ways and Means
0
WeVote Research Nonpartisan
Bill Summary · H 5298

Summary of H 5298 (194th MA General Court): An Act Relative to Senior Property Tax Credits

Purpose and Intent

  • This bill amends Chapter 62 of the General Laws to modify and expand senior property tax credit provisions.
  • The primary aim is to address how property tax credits interact with property tax deferrals for seniors, ensuring that deferral arrangements are considered within the senior property tax credit framework and establishing related clawback and reporting requirements.

Key Provisions and Changes

1) Clarification on Deferral Status for Credits

  • Section 1: Amends paragraph (1) of subsection (k) of section 6, Chapter 62, to explicitly allow the possibility that a senior property tax credit may be associated with property taxes that are paid or deferred. Specifically, the language inserts “or deferred” immediately after the word “paid” in the cited line.

2) New Provisions Related to Property Tax Deferral

  • Section 2: Adds four new paragraphs (10–13) to subsection (k) of section 6:
    • (10) No senior tax credit shall be provided if there is a property tax deferral unless there exists a tax deferral and recovery agreement between the property owner(s) and the local board of assessors under the relevant deferral provisions (clause Forty-first A of section 5 of chapter 59).
    • (11) If there is a default or nonpayment of taxes deferred under the same deferral authority, the Department of Revenue (DOR) may claw back or collect the amount of the credit previously granted.
    • (12) Amounts collected by local boards of assessors from deferral repayments are excluded from the calculation of the senior property tax credit for the property owner(s).
    • (13) Annual reporting to DOR by cities and towns on deferral participation, including:
    • (i) Names of owners participating in deferral/recovery agreements under the specified deferral authority.
    • (ii) Annual amount of taxes deferred for participating owners.
    • (iii) Cumulative lifetime amount of taxes deferred for participating owners.

Who Is Affected

  • Senior homeowners eligible for Massachusetts property tax credits under Chapter 62.
  • Municipalities (cities and towns) administering property tax deferral programs under clause Forty-first A of section 5 of chapter 59.
  • The Massachusetts Department of Revenue (DOR), which would receive new reporting and potential clawback authority.

Procedural and Timeline Aspects

  • The bill amends existing law and adds definitional and procedural requirements related to deferrals and credits.
  • It includes new reporting duties for municipalities to be submitted annually to DOR (section 2, paragraph 13).
  • The legislative history shows committee referrals and a Senate concurrence during the 194th General Court; a hearing is scheduled for May 4, 2026 (written testimony only).
  • There is an enforcement mechanism: if tax deferrals are in default, the DOR may claw back the credited amount.

Practical Impact and Implications

  • Individuals who participate in tax deferral programs and seek senior property tax credits may see changes in eligibility status if deferral arrangements exist.
  • The bill creates a tighter coupling between deferral agreements and credits, ensuring municipalities notify DOR and that credits can be clawed back upon deferral default.
  • Deferral repayments will no longer count toward credit calculations, which could modify net credits for some senior homeowners.
  • Enhanced transparency through annual reporting could influence program oversight and future policy decisions.

If you’d like, I can provide a plain-language example illustrating how a senior property tax credit might be affected under a hypothetical deferral scenario.

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

Sign in to ask a question.