Taxpayer Referral and Assistance Center
Personal Exemptions

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Tax Deferral
(M.G.L. Chapter 59 s.5 clause 41A)

The tax deferral 41A* option should be considered when a taxpayer's current expenses make the continued ownership of his/her home difficult. However, because of the 8 percent interest charge applied to the deferred taxes, deferral may be more expensive over time than the payment of the tax. The deferred amount will become a lien on your property.

A tax deferral may be used in conjunction with other exemption programs.

How long may taxes be deferred?

The deferred taxes must be repaid when the property is sold, transferred or upon the demise of the owner.

How do I apply?

Application must be filled out with the Taxpayer Referral & Assistance Center (TRAC) within three months of the mailing of the FY 2006 Third Quarter tax bill tax bill. If you think that you qualify, notify the TRAC at (617) 635-4287 after you receive the Fourth Quarter tax bill.

Requirements

• Reached the age of 65 as of July 1 of the tax year;



• Owned and occupied the property for at least 5 years as of July of that year;



• Resided in Massachusetts for at least 10 years;



• A gross income not exceeding $40,000.

The amount of the deferral, together with 8% annual interest on the deferred amount, must be eventually repaid when the property is:

• Sold;


• Transferred; or


• Upon the death of the owner

The deferral becomes a lien on the property - a tax deferral should be considered when a taxpayer's current expenses make the continued ownership of his/her home difficult.