Tax Deferral (Clause 41A)
- Occupy property
- Be 65 years of age or older
- Be joint owner of the property with spouse, either of whom is 65 years or older or be 65 years of age or older and own property jointly or as a tenant in common with a person who is not his/her spouse
- Reside in Massachusetts for the preceding 10 years
- Own and occupy property in Massachusetts for 5 years, or be a surviving spouse who inherited the property and occupied the property in Massachusetts for 5 years, and otherwise qualifies
- A Birth Certificate is necessary to prove age of applicant (Other acceptable forms of identification will be reviewed for acceptability)
- Evidence of income (i.e. state and federal income tax returns)
- Gross income cannot exceed $51,000 per year
- Ordinary business expenses and losses may be deducted, but not personal and family expenses.
Special Notes for Clause 41A Applicants
- A property owner may receive a Clause Exemption and also apply for Tax Deferral on all or a portion of the balance of taxes owed.
- All taxes, including accrued interest must be paid in full when property is:
- Upon demise of owner
- Taxes may be deferred annually in whole or in part
- Interest is accrued annually.
- CPA tax can not be deferred
- Net total amount of deferred taxes, including interest, cannot exceed 50% of the total assessed value of the property. If the total assessed value increases in a future tax year, the amount, which may be deferred, will also increase proportionately.
- Example: If property is assessed at $100,000 the total deferred taxes and interest cannot exceed $50,000.
- Applicant may defer only that percentage of taxes equal to the percentage of ownership
- All owners/mortgagees must agree to the terms of the deferral by submitting a notarized Tax Deferral and Recovery Agreement (Form 97-1).
- A Statement of Entry into Tax Deferral and Recovery Agreement (Form 97-2/99-2) will be executed by the Assessing Department upon approval of the application and filed at the Plymouth County Registry of Deeds.
A Tax Deferral Constitutes a Lien on Applicant's Property.