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H 3105

Divorce

2025-2026 Regular Session Introduced by Gil Gatch

Massachusetts towns may adopt a means-tested senior property tax exemption to cut eligible seniors' bills, shifting costs to other residential taxpayers within a local cap.

Referred to Committee on Judiciary
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WeVote Research Nonpartisan
Bill Summary · H 3105

Summary — H.3105 (House No. 3105) — “An Act relative to the establishment of a means tested senior citizen property tax exemption”

Purpose

This bill would authorize Massachusetts cities and towns to adopt a new, means‑tested property tax exemption for qualifying senior homeowners. The exemption is designed to reduce property tax burdens for low‑ to moderate‑income seniors by supplementing the existing “circuit breaker” income tax credit with a local property tax relief mechanism.

Key provisions

  • Municipal option: A city or town may accept the section to offer the exemption; acceptance must be by the local legislative body and the authorization expires every 3 years unless re‑accepted.
  • Exemption amount: For each qualifying residential parcel, the exemption equals the property tax otherwise assessed minus:
    1. 10% of the applicant’s income (or a different percentage if the municipality raises it under the cap‑management rules), and
    2. The circuit breaker income tax credit the applicant was eligible to receive in the prior year.
    3. The exemption may not reduce property taxes on a parcel by more than 50%.
  • Eligibility (all must be satisfied):
    1. Prior‑year income at or below the circuit‑breaker income limit (per filing status, adjusted annually as in G.L. c.62, §6(k));
    2. Ownership and occupancy of the property as domicile by the applicant(s);
    3. Single applicants must be age 65+ at year‑end; joint owners qualify if at least one is 65+ and the other is at least 60;
    4. At least one applicant domiciled in the municipality for 10 consecutive years prior to application;
    5. Assessed value of the domicile must not exceed (a) the prior year’s average assessed value of a single‑family residence in the municipality plus 10% and (b) the circuit‑breaker valuation limit (per G.L. c.62, §6(k)), whichever applies;
    6. Approval by the local board of assessors, which may deny an application if the applicant’s assets are considered excessive.
  • Annual application: Applicants must file each year using a form adopted by the board of assessors with income and asset documentation.
  • Local cap and allocation:
    • Initial dollar cap on total exemptions = 0.5% of the municipality’s fiscal year residential property tax levy (including any regional high school levy).
    • After the first year, the local legislative/executive body sets the cap annually between 0.5% and 1.0% of the residential levy.
    • If demand would exceed the cap, benefits are allocated by increasing the income percentage (i.e., raising the 10% factor) to stay within the cap; if the cap exceeds need, the cap may be reduced.
    • Total exemption amounts are proportionally allocated within the residential tax levy (i.e., the cost is shifted across residential taxpayers).
  • Precondition: No exemption is effective in a year until the Department of Revenue certifies the residential tax rate for a year where the exemption causes a burden shift within the residential tax levy.

Who is affected

  • Directly: Senior homeowners who meet the income, age, domicile, asset, and assessed‑value tests in municipalities that adopt the exemption.
  • Indirectly: Other residential property taxpayers in adopting municipalities, because the exemption’s cost is allocated proportionally across the residential tax base up to the local cap.
  • Local governments: Boards of assessors (application review), municipal legislative/executive bodies (adoption, annual cap-setting), and DOR (tax‑rate certification when burdens shift).

Fiscal and administrative implications

  • Local revenue impact: Reduces property tax revenue collectible from qualifying parcels up to the municipal cap (0.5% initial; 0.5–1% thereafter). The bill shifts the exempted tax burden across other residential taxpayers unless offset by other revenues.
  • Administrative tasks: Municipalities must adopt forms, process annual applications, verify income/assets and domicile requirements, monitor caps and allocation rules, and coordinate DOR certification when burdens shift.
  • Assessors are given discretion to deny based on “excessive assets,” introducing administrative judgment and potential appeals.

Procedural status & timeline (as provided)

  • Prefiled: 12/05/2024
  • Filed/Introduced: 01/07/2025 (House Docket No. 244 / House No. 3105)
  • Referred to Committee on Judiciary: 01/14/2025 (also listed as referred to Revenue 02/27/2025)
  • Senate concurred: 02/27/2025 (per docket)
  • Hearing scheduled: 06/16/2025, 1:00–5:00 PM (A‑1)

Notes / anomalies

  • The bill text provided is a Massachusetts municipal property tax exemption measure. The package also includes duplicated language from a South Carolina bill about transmutation of nonmarital property in divorce (clear and convincing evidence standard). That South Carolina text appears unrelated to H.3105 and is likely included in error; the Massachusetts provisions described above are the operative content of House No. 3105 as presented by Representatives Gentile and DeCoste.

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

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