City of Boston - TRAC Frequently Asked Questions

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 an exemption.

What is the charitable 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 real estate of qualified organizations will be eligible for exemption. The term "charitable" is defined in M. G. L. Chapter 59 §5, clause Third and is further defined in the many Massachusetts court opinions that have been published with respect to this exemption.

What is the religious organization exemption?

(M. G. L. chapter 59 §5, clause Eleventh) The law provides for exemption from property taxes for houses of worship and parsonages that are owned by, or held in irrevocable trust for the exclusive benefit of, a religious organization. The exemption cannot be extended to any portion of a house of worship that is used for other than religious worship or instruction. The house of worship must be owned and occupied as such on July 1 of the tax year.

Steps to Obtaining a Statutory Exemption

In order for an organization to procure exemption form local property taxes, the entity must take steps to ensure its eligibility. No exemption will be granted to an organization until it had filed for exemption and has been approved by the Assessing Department as a 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 for FY 2009 real estate or personal property taxes must file a Preliminary Consideration Application by November 1, 2008.

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 FY 2009 real estate or personal property taxes should file a Preliminary Consideration Application by November 1, 2008, to ensure that the Assessing Department has time to review the merits of the case.

The 3ABC requirement.

Every organization seeking exemption pursuant to M. G. L. c. 59 s.5, cl.3 must file a Form 3ABC with the assessors every year on or before March This form, titled "Return of Property Held for Charitable or 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 that is filed every year with the Public Charities Division of the Attorney General's Office located at One Ashburton Place, Boston, MA 02108. The Form 3ABC is available in January of each year at Hobbs & Warren, Inc. 11 Beacon Street, Boston, MA 02108, (617) 523-2282.

How is an application made?

An application on an approved abatement application form must be filed with the Assessing Department within 30 days of the issuance of the (actual) FY2009 3rd quarter tax bill. A separate application must be made for each property.

Supporting documentation, such as the organization's articles of organization, trust, by laws, deed to the property, and other information about the organization must be submitted with the application. If sufficient information is not submitted with the application, it must be provided within thirty days (30) after filing the application.

An inspection of the property will be made by a member of the Assessing Department staff to verify its use and occupancy.

NOTE: Filing an application does NOT mean the organization 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 the assessors. Any amount of tax that is paid late will be subject to interest and collection costs.

Requirements:

The organization must be a charitable corporation or a Massachusetts charitable trust.
The organization must timely file the 3ABC Form (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 real property for its charitable purposes on July 1 of the tax year. Occupancy may be established as follows:

Real property is 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 is 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 is purchased by the organization on or before July 1 for the purposes of relocating 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.

Statutory Exemption Application Form
The application form for Statutory Exemption is available immediately following the issuance of the Fiscal Year Third Quarter tax bill at the Assessing Department, Room 301, Boston, MA 02201. For more information, contact by phone OR in writing:

Assessing Department, Room 302
Board of Review
City Hall, Boston, MA 02201
(617) 635 - 4382

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