An exemption from local taxation is a privilege allowed by the state legislature. It releases a property owner from the obligation to pay all or a portion of the taxes assessed on a parcel of property. The law places the burden of establishing entitlement to an exemption upon the person or organization seeking the exemption.
Steps to Obtaining a Statutory Exemption
In order for an organization to procure exemption from local property taxes, the entity must take steps to ensure its eligibility. No exemption will be granted to an organization until it has filed for exemption and has been approved by the Assessing Department as a qualifying charitable organization. The information returned with the Preliminary Consideration Application is used by the Board of Assessors to determine the taxable or exempt status of an organization's real and/or personal property. Every charitable, benevolent, educational literary, temperance or scientific organization seeking exemption of FY2010 real estate or personal property taxes must file a Preliminary Consideration Application by November 1, 2009.
The information returned with the Preliminary Consideration application is used by the Board of Assessors to determine the taxable or exempt status of an organization's real and/or personal property. Additionally, the Assessing Department may ask for additional information on a case by case basis. Every organization seeking exemption of FY2010 real estate or personal property taxes should file a Preliminary Consideration Application by November 1, 2009, to ensure that the Assessing Department has time to review the merits of the case.
Charitable Organization Exemption
M.G.L. chapter 59 &5, clause Third
The law provides for exemption of certain personal and real property of charitable organizations. Not all charitable organizations will qualify for this exemption, and not all properties of qualified organizations will be eligible for exemption. The term "charitable" is described in M.G.L. chapter 59 &5, clause Third, and is further defined in the manyMassachusettscourt decisions which have been made with respect to this exemption.
The 3ABC Requirement
Every organization seeking exemption pursuant to M.G.L. c. 59, §5, cl. 3 must file a Form 3ABC with the assessors every year on or before March 1. This form, titled "Return of Property Held for Charitable and Other Purposes" is a state tax form. Its filing is mandated by statute and cannot be waived by the assessors. If an organization fails to timely file this form every year, its eligibility for exemption will be called into question. The 3ABC requirement applies to all organizations seeking the benefit of a statutory exemption, including new applicants as well as previously exempt properties.
Attached to the Form 3ABC must be a "true copy" of the Form PC-1 which is filed every year with the Public Charities Division of the Massachusetts Attorney General's office located at:
One Ashburton Place
Boston, MA 02108
The Form 3ABC is available here
, or a hard copy can be procured at:
Hobbs & Warren, Inc
11 Beacon Street
Boston, MA 02108
(617) 523-2282.
Under the authority of the Massachusetts Department of Revenue, the Boston Assessing Department now requires charitable organizations filing Form 3ABC for property located inBostonto provide additional tenant information under Section D,REAL ESTATE
Supporting documentation, such as the organization's articles of organization, trust, by laws, deed to the property, and other information about the organization may be submitted with the application. If sufficient information is not submitted with the application, it must be provided within thirty (30) after filing the application.
An inspection of the property may be made by a member of the Assessing Department staff to verify its use and occupancy.
Note: Filing an application does not mean you can postpone the payment of the tax. If the total tax on real estate for the fiscal year is more than $3,000.00, the tax must be timely paid in order to preserve the organization's right to appeal the decision of assessors. Any amount of tax which is paid late will be subject to interest and collection costs.
- The organization must be a charitable corporation or a Massachusetts charitable trust.
- The organization must timely file the Form 3ABC (i.e., on or before March 1 preceding the tax year), accompanied by a true copy of the Form PC-1.
- The organization must own and occupy the property in issue for its charitable purposes on July 1 of the tax year. Occupancy may be established as follows:
Real property which was occupied on July 1 by the organization for its charitable purposes, provided those purposes are regarded as charitable under Massachusetts local taxation law, OR
Real property which was occupied on July 1 by other organizations, for their charitable purposes, provided those purposes are regarded as charitable under Massachusetts local taxation law, OR
Real property which was purchased by the organization on or before July 1 for the purposes of relocation the organization's headquarters to that site. In this case the exemption may continue for two years, but if the organization has not moved to the site within that time, the exemption ceases.
FY 2010 Statutory Exemption Application Form
The abatement application for FY 2010 Statutory Exemption is available immediately following the issuance of the FY Third Quarter tax bill (January 1, 2010 - February 1, 2010) at the Assessing Department, Room 301, One City Hall Square, Boston, MA 02201-1050.
Complete the FY 2010 Real Estate Abatement application and check Statutory Exemption for Reason for Filing.
Return the FY 2010 Abatement Application by the filing deadline (February 1, 2010) You will then have thirty days from the date you file the abatement application to complete and file the Statutory Exemption Information Requisition Form.
The FY 2010 Abatement application and the Statutory Exemption Information Requisition Form will be available online during the filing period ONLY - (January 1, 2010 - February 1, 2010).
Get Form
For more information, contact by phone or in writing:
Assessing Department
Board of Review, Room 302
One City Hall Square
Boston, MA 02201-1050
(617) 635-4382
©2009 The City of Boston