An Act to provide municipalities with the option to freeze residential tax rate or valuation for the elderly with means tested criteria

194th Legislature (2025-2026) Introduced by David DeCoste

Allows municipalities to pass an ordinance to freeze either property tax rate or assessed value for eligible elderly or disabled homeowners based on local means tests.

Summary: House Bill HD 1937 – An Act to provide municipalities with the option to freeze residential tax rate or valuation for the elderly with means tested criteria

Overview
House Bill HD 1937 proposes to give Massachusetts municipalities the option to adopt, by local ordinance, a one-year freeze or limit on residential property taxes for eligible elderly or totally disabled residents. The freeze can apply to either the tax rate or the assessed valuation, and eligibility is defined by age or disability combined with means testing and residency criteria. The bill is positioned as a municipal option rather than a statewide entitlement.

Key Provisions
- Municipal Option: Cities and towns may enact by ordinance a tax-freeze for real property taxes on residents who meet the age/disabled criteria and income/assets thresholds.
- Freeze Scope: The ordinance may freeze either the tax rate or the assessed value of the property, subject to annual means-testing parameters set by the local legislative body.
- Eligibility Determination: Applicants must show evidence to the local assessors that they meet the thresholds, presented prior to the deadline for sworn statements for the tax year in which the freeze is claimed. The exemption remains as long as the recipient’s legal residence does not change.
- Assessors’ Authority: The board of assessors may deny an application if the applicant’s assets exceed the local parameters, thereby excluding those outside the intended senior/disabled group.
- Property and Residency Criteria: The real property must be:
1) Within a maximum valuation set by the assessor;
2) Owned and occupied by the applicant (or joint applicants) as domicile;
3) Held by the applicant(s) for at least 10 consecutive years prior to filing;
4) In combination with income and assets not exceeding local limits;
5) Owned by a single applicant who is at the requisite age, or jointly by applicants where at least one is the required age, with the joint applicant(s) aged 65+ at the close of the previous year.
- Existing Exemptions: These freezes are in addition to any other exemptions, but the property remains on the tax rolls and is subject to the municipality’s bonded indebtedness.
- Administrative Emphasis: The measure emphasizes local determination of age/means thresholds and requires asset testing at the municipal level.

Who Is Affected
- Eligible individuals: Residents aged at or above the local age threshold or totally disabled, who meet means-testing income and asset limits and who own and occupy qualifying property as their domicile.
- Municipalities: Cities and towns would gain a new mechanism to tailor property tax relief for seniors and disabled residents via local ordinance, subject to local thresholds and administrative processes.
- Assessors: Responsible for evaluating eligibility, reviewing financial evidence, and denying ineligible applications.

Timelines and Status
- Legislative status: The bill is a proposed measure in the 2025-2026 General Court session. It reflects prior related proposals (e.g., similar matter filed in 2023-2024).
- Implementation would require local adoption of an ordinance and annual eligibility determinations based on the stated deadlines for sworn statements. Specific statewide effective dates would depend on enactment and local adoption schedules.