Press Room

An Act to prevent property tax bill shocks focuses directly on the most vulnerable taxpayers in a community and creates a way to shield them from the shock of an extraordinarily high tax bill in a year when the community’s residential property tax levy is rising by more than 10 per cent. Cities and towns would have the ability to opt into this model and offer a tax credit to gradually phase in the increase for vulnerable households. The credit addresses the shock felt by taxpayers when they receive third- and fourth-quarter tax bills, which fold in the entire tax increase.

The details of the legislation are below.

Creates the Tax Shock Credit. Offers municipalities facing a tax shock year—a year when the residential property tax levy is rising more than 10 per cent—the ability to trigger a tax credit structure that directly eases the burden of a large increase on their most at-risk residents. The city or town would determine their own credit percentages for third- and fourth-quarter tax bills. A municipality would be approved to offer the credit by the Division of Local Services after certifying it has the funds available to cover the cost of the credit. Caps a taxpayer’s credit at 50 per cent of the increase from what was owed on the preliminary tax bill to the taxpayer’s actual tax bill.

Directs Relief to People Who Need It. Targets relief to the most vulnerable taxpayers. Qualifying taxpayers could include people who have a child under six years old in the house; people aged 65 and older who own and occupy the home; or people in neighborhoods designated as high-need by the U.S. Department of Housing and Urban Development (HUD). Taxpayers could also qualify if a member of their household is enrolled in MassHealth or received unemployment benefits during the applicable tax year.