Senior Tax Deferral Senator Pat Jehlen

 

Dear Neighbor, So many people have commented about my past four newsletters* about proposed tax cuts vs. services!   I haven't had time to respond to all of them or pick a few to highlight.  Most comments have been positive, and others told me why they disagreed.  Thank you to all!  It's budget and hearing season, so we're very very busy.  Last week saw the release of the Senate Ways and Means budget proposal.  My staff and I filed 28 amendments.  This week we're responding to cosponsorship requests and advocating with Senate Ways and Means.  I also chaired an Elder Affairs hearing, hosted a briefing on wrongful convictions, and testified on our bill to support parents running for public office.  Next week will be our Senate budget debate all week, and sometimes all night. This newsletter is mostly about a bill to provide significant property tax relief to older homeowners, but doesn't reduce revenue for either the state or local government.  Then there are a couple of updates about the real numbers on population change: it's not what the Pioneer Institute, the  Herald and other commentators think! Senior Tax Deferral Last week, Rep. Tommy Vitolo and I testified on our bill to make it easier for seniors to qualify for Senior Property Tax Deferral.   Mike Festa, Massachusetts Director for AARP also testified in support. Senior Property Tax Deferral is a program communities can adopt to allow seniors to defer paying their property taxes until they sell their home or die.  There is no long-term cost to other taxpayers since the tax is repaid when the property is sold or transferred. Many senior homeowners have seen their property values, and therefore their property taxes, increase many times, while they are on fixed incomes.  Postponing their payments can help them stay in their home.   For example, a woman called our office recently, hoping to get her property taxes deferred so she could pay for home care and avoid selling her home and moving to a nursing facility.   My own neighbor could have used deferral to avoid taking out a loan every time she needed to pay property taxes.    Our bill would reduce barriers that keep some people from using deferral.   The current law requires a senior be a 5-year resident of the home and a 10-year resident of Massachusetts.  Our bill eliminates that requirement.  Some people have moved here to be near their children. The current law allows municipalities to set income limits, with a cap of up to the senior circuit breaker amount for a single person.  Our bill would increase the cap. The current law allows the municipality to charge up to 8% interest, which increases to 16% when the owner dies or sells the property.  Our bill caps the interest at the municipality's most recent bond rate if it has bonded within the last 3 years or the bond rate of the commonwealth; and postponing an increase in the interest rate for a year after the person's death. The state's explanation of property tax deferral qualifications is here.  And in the box are the provisions in our district's communities. Winchester, where I first learned about tax deferral from the Council on Aging, has around 20 people currently using this provision.  The other three communities in our district combined have a total of fewer than 20.  This may be because they have more triple deckers, where tenants can help pay property taxes.  Or it may be because fewer people know about the program. Tax deferral is more beneficial to many seniors than reverse mortgages, so I hope it will be made available to more people.  Quo Vadis II This New York Times article reports that "years after lower-wage residents have been priced out of expensive coastal metros, higher-paid workers are now turning away from them, too." But Boston is an exception, an outlier: Metropolitan Boston continues to attract college graduates - likely higher income people.  The unfortunate result is that lower-income people - often essential workers - are displaced as housing costs rise. Another data point: the Boston Business Journal reports  that "The number of millionaires in Boston has risen 50% in the last decade to more than 40,000...Boston has 104 ​​"centimillionaires", or those with a networth of at least $100 million, and eight billionaires." Meanwhile, a business leader talks about "competitiveness." The Globe reported: “Our fixation on taxes on high income is a huge distraction from what we should focus on, which is how we actually become more competitive,” said Mohamad Ali, chief executive of IDG, a Needham-based technology and data company.  That, he said, includes “how we address our high cost of living — housing, education, child care, transportation, health care, energy — the real issues driving people away and hurting our businesses.” Thank you for staying in touch, *Vox Populi?  What do polls say? Cui bono?  Who will benefit? Caveat Emptor?  Buyer beware of the results  Quo Vadis? or the Flight of the Millionaires

Please donate! Copyright © 2017 CTE Pat Jehlen Our mailing address is: 67 Dane St, Somerville MA 02143

Sat, May 20 at 9:47 AM

Dear Neighbor, So many people have commented about my past four newsletters* about proposed tax cuts vs. services!   I haven't had time to respond to all of them or pick a few to highlight.  Most comments have been positive, and others told me why they disagreed.  Thank you to all!  It's budget and hearing season, so we're very very busy.  Last week saw the release of the Senate Ways and Means budget proposal.  My staff and I filed 28 amendments.  This week we're responding to cosponsorship requests and advocating with Senate Ways and Means.  I also chaired an Elder Affairs hearing, hosted a briefing on wrongful convictions, and testified on our bill to support parents running for public office.  Next week will be our Senate budget debate all week, and sometimes all night. This newsletter is mostly about a bill to provide significant property tax relief to older homeowners, but doesn't reduce revenue for either the state or local government.  Then there are a couple of updates about the real numbers on population change: it's not what the Pioneer Institute, the  Herald and other commentators think! Senior Tax Deferral Last week, Rep. Tommy Vitolo and I testified on our bill to make it easier for seniors to qualify for Senior Property Tax Deferral.   Mike Festa, Massachusetts Director for AARP also testified in support. Senior Property Tax Deferral is a program communities can adopt to allow seniors to defer paying their property taxes until they sell their home or die.  There is no long-term cost to other taxpayers since the tax is repaid when the property is sold or transferred. Many senior homeowners have seen their property values, and therefore their property taxes, increase many times, while they are on fixed incomes.  Postponing their payments can help them stay in their home.   For example, a woman called our office recently, hoping to get her property taxes deferred so she could pay for home care and avoid selling her home and moving to a nursing facility.   My own neighbor could have used deferral to avoid taking out a loan every time she needed to pay property taxes.    Our bill would reduce barriers that keep some people from using deferral.   The current law requires a senior be a 5-year resident of the home and a 10-year resident of Massachusetts.  Our bill eliminates that requirement.  Some people have moved here to be near their children. The current law allows municipalities to set income limits, with a cap of up to the senior circuit breaker amount for a single person.  Our bill would increase the cap. The current law allows the municipality to charge up to 8% interest, which increases to 16% when the owner dies or sells the property.  Our bill caps the interest at the municipality's most recent bond rate if it has bonded within the last 3 years or the bond rate of the commonwealth; and postponing an increase in the interest rate for a year after the person's death. The state's explanation of property tax deferral qualifications is here.  And in the box are the provisions in our district's communities. Winchester, where I first learned about tax deferral from the Council on Aging, has around 20 people currently using this provision.  The other three communities in our district combined have a total of fewer than 20.  This may be because they have more triple deckers, where tenants can help pay property taxes.  Or it may be because fewer people know about the program. Tax deferral is more beneficial to many seniors than reverse mortgages, so I hope it will be made available to more people.  Quo Vadis II This New York Times article reports that "years after lower-wage residents have been priced out of expensive coastal metros, higher-paid workers are now turning away from them, too." But Boston is an exception, an outlier: Metropolitan Boston continues to attract college graduates - likely higher income people.  The unfortunate result is that lower-income people - often essential workers - are displaced as housing costs rise. Another data point: the Boston Business Journal reports  that "The number of millionaires in Boston has risen 50% in the last decade to more than 40,000...Boston has 104 ​​"centimillionaires", or those with a networth of at least $100 million, and eight billionaires." Meanwhile, a business leader talks about "competitiveness." The Globe reported: “Our fixation on taxes on high income is a huge distraction from what we should focus on, which is how we actually become more competitive,” said Mohamad Ali, chief executive of IDG, a Needham-based technology and data company.  That, he said, includes “how we address our high cost of living — housing, education, child care, transportation, health care, energy — the real issues driving people away and hurting our businesses.” Thank you for staying in touch, *Vox Populi?  What do polls say? Cui bono?  Who will benefit? Caveat Emptor?  Buyer beware of the results  Quo Vadis? or the Flight of the Millionaires

Please donate! Copyright © 2017 CTE Pat Jehlen Our mailing address is: 67 Dane St, Somerville MA 02143

Dear Neighbor, So many people have commented about my past four newsletters* about proposed tax cuts vs. services!   I haven't had time to respond to all of them or pick a few to highlight.  Most comments have been positive, and others told me why they disagreed.  Thank you to all!  It's budget and hearing season, so we're very very busy.  Last week saw the release of the Senate Ways and Means budget proposal.  My staff and I filed 28 amendments.  This week we're responding to cosponsorship requests and advocating with Senate Ways and Means.  I also chaired an Elder Affairs hearing, hosted a briefing on wrongful convictions, and testified on our bill to support parents running for public office.  Next week will be our Senate budget debate all week, and sometimes all night. This newsletter is mostly about a bill to provide significant property tax relief to older homeowners, but doesn't reduce revenue for either the state or local government.  Then there are a couple of updates about the real numbers on population change: it's not what the Pioneer Institute, the  Herald and other commentators think! Senior Tax Deferral Last week, Rep. Tommy Vitolo and I testified on our bill to make it easier for seniors to qualify for Senior Property Tax Deferral.   Mike Festa, Massachusetts Director for AARP also testified in support. Senior Property Tax Deferral is a program communities can adopt to allow seniors to defer paying their property taxes until they sell their home or die.  There is no long-term cost to other taxpayers since the tax is repaid when the property is sold or transferred. Many senior homeowners have seen their property values, and therefore their property taxes, increase many times, while they are on fixed incomes.  Postponing their payments can help them stay in their home.   For example, a woman called our office recently, hoping to get her property taxes deferred so she could pay for home care and avoid selling her home and moving to a nursing facility.   My own neighbor could have used deferral to avoid taking out a loan every time she needed to pay property taxes.    Our bill would reduce barriers that keep some people from using deferral.   The current law requires a senior be a 5-year resident of the home and a 10-year resident of Massachusetts.  Our bill eliminates that requirement.  Some people have moved here to be near their children. The current law allows municipalities to set income limits, with a cap of up to the senior circuit breaker amount for a single person.  Our bill would increase the cap. The current law allows the municipality to charge up to 8% interest, which increases to 16% when the owner dies or sells the property.  Our bill caps the interest at the municipality's most recent bond rate if it has bonded within the last 3 years or the bond rate of the commonwealth; and postponing an increase in the interest rate for a year after the person's death. The state's explanation of property tax deferral qualifications is here.  And in the box are the provisions in our district's communities. Winchester, where I first learned about tax deferral from the Council on Aging, has around 20 people currently using this provision.  The other three communities in our district combined have a total of fewer than 20.  This may be because they have more triple deckers, where tenants can help pay property taxes.  Or it may be because fewer people know about the program. Tax deferral is more beneficial to many seniors than reverse mortgages, so I hope it will be made available to more people.  Quo Vadis II This New York Times article reports that "years after lower-wage residents have been priced out of expensive coastal metros, higher-paid workers are now turning away from them, too." But Boston is an exception, an outlier: Metropolitan Boston continues to attract college graduates - likely higher income people.  The unfortunate result is that lower-income people - often essential workers - are displaced as housing costs rise. Another data point: the Boston Business Journal reports  that "The number of millionaires in Boston has risen 50% in the last decade to more than 40,000...Boston has 104 ​​"centimillionaires", or those with a networth of at least $100 million, and eight billionaires." Meanwhile, a business leader talks about "competitiveness." The Globe reported: “Our fixation on taxes on high income is a huge distraction from what we should focus on, which is how we actually become more competitive,” said Mohamad Ali, chief executive of IDG, a Needham-based technology and data company.  That, he said, includes “how we address our high cost of living — housing, education, child care, transportation, health care, energy — the real issues driving people away and hurting our businesses.” Thank you for staying in touch, *Vox Populi?  What do polls say? Cui bono?  Who will benefit? Caveat Emptor?  Buyer beware of the results  Quo Vadis? or the Flight of the Millionaires   Please donate! Copyright © 2017 CTE Pat Jehlen Our mailing address is: 67 Dane St, Somerville MA 02143