One good way to prevent older homeowners from falling behind in their property taxes, and losing their home at public auction plus all their equity is to give them better property tax exemptions instead.

The average single family tax bill in Greenfield in 2023 is $5,076. Greenfield’s per capita income in 2020 was $24,870. No wonder homeowners take a deep breath whenever they write a quarterly tax check to the city.

Massachusetts law offers a confusing array of property tax exemptions for elders found in Chapter 59, Section 5. Clauses 41, 41B, 41C or 41C½ provide exemptions for seniors who meet specific age, ownership, residency, income and asset requirements. Clauses 17, 17C, 17C½ or 17D, provide a lower benefit, but have less strict eligibility requirements. All of these tax breaks are administered at the local level by the Board of Assessors.

In fiscal year 2023, for example, Greenfield provides a Clause 17E exemption worth $175, for people age 67 and over, with an asset limit of $44,700 (not counting your home). You can also apply for a Clause 41C exemption worth $1,000, if your gross income limit is $29,500 for a single person ($44,700 income limit if married) and your asset limit is $36,898 for a single person ($49,197 asset limit for a couple). The state Legislature adjusts these exemption eligibility limits annually. The Greenfield City Council voted to allow a Social Security deduction from income, which is included in the income limits above.

According to my public records request, in fiscal year 2017 there were a total of $55,900 worth of elderly exemptions approved in Greenfield. 28 elders were approved for a Clause 17D exemption, worth $175 each, for a total exemption of $4,900. Fifty-one elders were approved for a Clause 41C exemption, worth $1,000 each, for a total of $51,000 in exemptions. Five years later, there were 24 Clause 17D exemptions, and 41 Clause 41C exemptions, for a total of $45,200, a drop of almost 20% in tax exemptions. The number of tax exemption applications are falling and many eligible seniors are not applying.

Seniors 65 and older with an annual income up to $20,000 can also ask local assessors for a deferral of all or a portion of their property taxes. A tax deferral postpones payment of your taxes, but deferred taxes plus interest must be paid when the property is sold or transferred. Chapter 59 also allows people over the age of 60 to volunteer to provide services to their city or town at the state minimum wage, to “work off” a reduction in their property taxes up to $1,500.

Massachusetts also offers seniors the “Circuit Breaker,” a more financially significant refundable tax credit you claim on your state income tax return. The Senior Circuit Breaker is based on the actual real estate taxes paid on your principal residence which you own — or rent. The maximum credit amount is $1,200 a year. You get a refund if your credit exceeds what you paid in state taxes. Only one person in the household has to be age 65 or older. Your total income can’t exceed $80,000 for a head of household, or $96,000 for joint filers. The assessed valuation of the real estate cannot exceed $912,000. You can get retroactive refunds for up to three years.

In 2021, 99,361 seniors statewide claimed the circuit breaker, worth $97.1 million. In Greenfield, 457 elders used the circuit breaker, receiving a total of $425,072 in tax credits. Between 2001 and 2021, Greenfield seniors benefited from around $5.1 million in Circuit Breaker credits. Twenty-three percent of Greenfield’s population is over age 65 (4,097 people). Fourteen percent of them (574 elders) are living in poverty. Only 11% of our elderly population are receiving the circuit breaker credit. Assuming half of our elders might qualify financially for the Circuit Breaker, seniors in Greenfield could be forfeiting as much as $1.9 million in property tax relief annually.

Three months ago, Gov. Maura Healey submitted her first budget. She proposed doubling the senior Circuit Breaker credit to $2,400. For more info on the Circuit Breaker, call the state toll free at 1-800-392-6089.

Randy Austin, Greenfield’s Chief Assessor, wants to “get the word out” to seniors. “I take this seriously, especially for seniors. If there’s anyone out there who qualifies and does not know about exemptions, chances are the assistance is sorely needed.” Greenfield Assessors are at (413) 772-1506.

We need more tax breaks for seniors, more tax aides to help them apply, and fewer home foreclosure auctions.

Al Norman’s PUSHBACK column appears in The Recorder every third Wednesday. He can be reached at info@sprawl-busters.com.

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