Exemption for Community Preservation Act (CPA)
In a city or town that accepts G.L. c. 44B, §§ 3-7, a community preservation surcharge is assessed on the municipality’s real estate taxes. Taxes assessed on personal property, or by water, fire, or other tax-levying districts within the municipality, are not subject to the surcharge.
Low Income/Low or Moderate Income Senior Exemption (G.L. c. 44B, § 3(e)(1))
Eligible Taxpayers
(a) Ownership and Occupancy
An applicant for the low-income or low or moderate-income senior exemption must be a natural person, who owns and occupies the property as a domicile (primary residence) as of January 1. An applicant may be (1) sole owner, (2) co-owner, (3) life tenant, or (4) trustee with sufficient beneficial interest in the property under the terms of trust. All co-owners do not have to occupy the property as a domicile for the exemption to be granted.
The exemption does not apply to residential property owned in whole or in part by a corporation or other business entity.
(b) Age
To qualify as a senior, the applicant must be 60 or older as of January 1.
(2) Income Limits
Each co-owner of the domicile must meet a household annual income standard for the low income or low or moderate income senior exemption to be granted. The income standard is based on the area-wide median income determined annually by the United States Department of Housing and Urban Development. Therefore, assessors must establish new limits for each year.
Annual household income is the income received from all sources regardless of income tax status under federal or state law during the calendar year preceding January 1 by all members of the household 18 or older who are not full-time students, less deductions for dependents other than a spouse and certain medical expenses. That amount must be at or below the allowable income limit for the household type (senior or non-senior) and size.
(3) Exemption Amount
A qualified taxpayer receives an exemption of the entire surcharge attributable to the real estate tax assessed on the Class One, Residential, assessed valuation of the parcel, regardless of ownership share or number of residential dwelling units.