Bill > H3272

This bill modifies the property tax deferral program for seniors by updating the existing law to provide more comprehensive tax relief and clarify the terms of tax deferral agreements. The bill allows seniors 65 years or older to defer property taxes if their gross annual income is below a specific threshold, with the deferral applying to properties owned individually, jointly with a spouse, or jointly with a non-spouse. The tax deferral agreement includes several key provisions: taxes can be deferred with interest (at either the municipal bond rate or state bond rate), the total deferred taxes cannot exceed 50% of the property's value, and heirs can inherit the property by paying the outstanding taxes. Upon the owner's death, a surviving spouse can continue the deferral without immediate payment, and the agreement requires written approval from joint owners or mortgage holders. The board of assessors must record the tax deferral agreement as a lien on the property and notify the property owner annually of the outstanding balance. Importantly, the bill specifies that these changes will apply to taxes assessed for fiscal years beginning on or after July 1, 2025, giving municipalities and property owners time to prepare for the new regulations.

Budget and Finance

https://malegislature.gov/Bills/194/H3272