Bill > H4030

This bill proposes to establish a new property tax exemption for senior citizens in cities and towns that accept its provisions, with the exemption amount calculated based on a senior's income and existing tax credits. Specifically, the exemption would reduce property taxes by the amount of tax that would otherwise be assessed, minus 10% of the senior's total qualifying annual income (used for the "circuit breaker" income tax credit, which is a tax credit for renters and homeowners whose rent or property taxes exceed a certain percentage of their income) plus any circuit breaker credit they were eligible for in the prior year, with the property tax reduction capped at 50% of the total tax and applied only to their primary residence, or "domicile." To qualify, the property must be owned and occupied by a person aged 65 or older (or jointly with a spouse aged 60 or older), who has been a resident of the town for at least 10 consecutive years, and whose property's assessed value does not exceed the prior year's average single-family home value by more than 10%, and the assessors can deny the exemption if the applicant has excessive assets. The total amount of these exemptions within a city or town would be capped, initially at 0.5% of the total residential property tax levy, and this cap could be adjusted annually by local officials between 0.5% and 1%, with the possibility of increasing the income percentage used in the calculation if needed to stay within the cap. Applicants must file an annual application with supporting income and asset documentation, and the exemption would expire every three years, requiring re-acceptance by the city or town.