Town Manager Tuesdays: Tax Relief for Seniors
For this week's column, Town Manager Carl Valente focuses on just one topic – local tax relief for Lexington’s low income and elderly residents.
A number of years ago the Board of Selectmen created the Tax Deferral and Exemption Study Committee to advise them on options for reducing the tax burden on income restricted residents. That committee and the selectmen have worked hard to expand the range of tax relief choices, in some cases working with our state legislators to obtain special legislation to offer programs not otherwise allowed under state law.The town’s fiscal 2013 recommended budget provides funding for the following tax relief programs:
Senior Service Program – Qualified property owners over the age of 60 can work for the Town and receive up to $935 per individual or $1,190 per two-person household toward their property tax bills.
Property Tax Deferral-Interest Rate Reduction – As a result of 2006 State legislation, Town Meeting voted to decrease the interest rate charged for elderly residents who choose to defer payment of their property taxes. The interest rate is determined each March and is tied to the U.S. Treasury 1-Year Constant Maturity index. The interest rate for deferred taxes since Lexington’s special legislation was passed is:
FY2013: 0.17 percent
FY2012: 0.34 percent
FY2011: 0.68 percent
FY2010: 1.66 percent
Property Tax Deferral-Qualifying Income Level - The town has received special legislation to increase the income limits for residents over 65 years of age who wish to defer their property taxes. Currently, seniors who earn less than $51,000 qualify for this program.
Increase in the Property Tax Exemption Limits – At the 2006 annual Town Meeting, the town voted to double the amount of the property tax exemption for certain qualifying residents, to $1,000.
Water/Sewer Bills - The town provides a 30 percent discount on water and sewer rates to qualified low-income residents.
These programs are explained in more detail in the pamphlet, Property Tax Relief for Seniors, found on the town’s website by clicking here. If you have questions regarding any of these programs or eligibility requirements please contact the town’s Human Services Department or Assessors Office.
