Bill > S2713

This bill modifies the existing property tax deferral program for seniors by updating the eligibility requirements and tax deferral process. Specifically, the bill allows homeowners aged 65 or older, or those who jointly own property with a spouse or another person aged 65 or over, to defer property taxes if their gross annual income is below a certain threshold determined by the commissioner of revenue. The tax deferral agreement includes several key provisions: (1) taxes owed cannot be collected until the property is sold or transferred, with interest calculated at the municipality's or state's bond rate; (2) the total deferred taxes and interest cannot exceed 50% of the property's proportional value; (3) upon the owner's death, heirs can inherit the property by paying the full taxes, with special provisions for surviving spouses who can continue the tax deferral; (4) if taxes are not paid, they will be recovered from the owner's estate; and (5) joint owners or mortgagees must provide written approval. The bill also requires assessors to record a lien and notify property owners annually about the deferred tax balance. These changes will apply to taxes assessed for fiscal years beginning on or after July 1, 2025, providing more flexibility and protection for senior homeowners struggling with property tax payments.

Budget and Finance

Joint Committee on Revenue (Joint)

https://malegislature.gov/Bills/194/S2713