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H 3114

Divorce

2025-2026 Regular Session Introduced by Neal Collins

The bill creates a statewide senior property tax deferral with a revolving fund, allowing eligible homeowners 65+ to defer taxes and cities to be loaned the deferred amounts.

Referred to Committee on Judiciary
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WeVote Research Nonpartisan
Bill Summary · H 3114

Summary — H.3114 (House Docket No. 1027) — “An Act relative to senior property tax deferral”

Status & procedural history
- Introduced (prefiled 12/05/2024; filed 01/14/2025) by Rep. Kenneth I. Gordon (21st Middlesex).
- Referred to Committee on Judiciary (1/14/2025) and to the Committee on Revenue (2/27/2025).
- Senate concurred (2/27/2025).
- Hearing scheduled 06/16/2025 (1:00–5:00 PM, room A‑1).

Note: the bill text as filed concerns a Massachusetts senior property tax deferral program. A separate South Carolina divorce-affidavit text appears appended in the materials but is unrelated to this Massachusetts bill.

Purpose and intent
- Establish a statewide program to allow eligible senior homeowners to defer payment of some or all property taxes and to create a state-administered revolving fund to make loans to municipalities that must cover the revenue shortfall caused by those deferrals. The bill’s intent is to help qualifying seniors remain in their homes by postponing current property tax payments while ensuring municipalities receive cash flow via state loans.

Key provisions
1. Appropriation and fund creation
- Authorizes $450,000,000 to capitalize the “Senior Property Tax Deferral Revolving Fund.”
- The Massachusetts Department of Revenue (DOR) Commissioner is trustee of the fund and may expend money without further appropriation to make loans to cities/towns.

  1. Loans to municipalities

    • DOR will lend cities and towns amounts equal to 100% of the deferred real property taxes owed under the revised exemption/deferral clause (clause Forty‑first A of M.G.L. c.59, §5).
    • When municipalities later receive the deferred taxes plus interest (e.g., upon sale/transfer of the property or death of the owner and surviving spouse), they must deposit those receipts back into the revolving fund.

  2. Eligibility and opt‑in mechanics (amendment to M.G.L. c.59, §5, cl. 41A)

    • Eligible owners: persons aged 65 or older who occupy the property as their domicile (including certain joint ownership and surviving‑spouse situations).
    • Ownership/occupancy requirement: 5 years in Commonwealth (including combined spouse ownership time).
    • Boards of assessors must include an opt‑in checkbox on every property tax bill allowing eligible homeowners to certify and elect deferral.
    • A tax deferral and recovery agreement between the owner and the board of assessors is required.

  3. Terms and limits in the deferral agreement

    • Sale/transfer requires payment of deferred taxes plus interest. Interest rate determined annually by the Secretary of Administration and Finance to include the Commonwealth’s borrowing and administrative costs, or a lower municipal rate.
    • Total deferred taxes plus interest may not exceed 60% of the owner’s proportional share of the property’s full and fair cash value.
    • Heirs/assignees/devisees have priority to retain property by paying deferred taxes and interest; a surviving spouse who signs a deferral agreement may postpone payment during his/her lifetime.
    • If unpaid, deferred taxes and interest are recoverable from the owner’s estate.
    • Joint owners and mortgagees must give prior written approval for a deferral agreement.

  4. Reporting and transparency

    • DOR must produce an annual report listing revenue credited to the revolving fund, administrative costs, and loans made to and repaid by each municipality; report to relevant legislative committees and clerks.

Who is affected
- Primary: homeowners aged 65+ who meet domicile and ownership requirements and choose to opt into deferral.
- Municipalities: changes cash‑flow management and administrative processes; they receive state loans equal to deferred taxes and must remit recovered funds back to the state fund.
- Heirs, mortgagees, and joint owners: their rights and obligations at sale/transfer and upon owner’s death are affected.
- State government: initial appropriation of $450M and ongoing fund administration and reporting duties for DOR.

Potential impacts and considerations
- Provides liquidity to municipalities immediately (state loans) while enabling seniors to remain in their homes by deferring property tax obligations.
- Transfers short‑term fiscal cost/risk from municipalities to the Commonwealth (state bears initial outlay and administration).
- The 60% cap limits long‑term accrual of deferred tax liens relative to property value but may constrain benefits for very low‑value properties with large tax burdens.
- Administrative burdens: assessors must implement opt‑in notices, execute deferral agreements, and manage mortgagee approvals and record‑keeping.
- Drafting details: the bill text is truncated in parts and contains cross‑references (e.g., section numbering, chapter references) that should be reviewed for consistency in final language.

For further review
- Watch the Revenue/Judiciary committee hearing (06/16/2025) for testimony, fiscal analyses, and any amendments that clarify interest‑rate setting, fund governance, municipal repayment terms, and eligible populations.

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

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