Property Tax Exemption Approved for Reading Seniors

From the offices of Rep. Bradley Jones, Rep. James Dwyer and Sen. Jason Lewis

READING, MA — Qualifying Reading seniors will receive a break on their local property tax bills next year, thanks to legislation enacted by the House and Senate today that authorizes the town to establish a means-tested property tax exemption program to help older residents living on fixed incomes remain in their homes.

Under the exemption program, which is currently being reviewed by Governor Charlie Baker, residents could qualify for tax relief ranging from 50% to 200% of the state income tax benefits offered through the Senior Circuit Breaker. The actual amount of the tax exemption would be set annually by the Board of Selectmen.

House Minority Leader Bradley H. Jones, Jr. (R-North Reading), Representative James J. Dwyer (D-Woburn) and Senator Jason M. Lewis (D-Winchester) filed the Home Rule Petition on behalf of Reading, following its initial approval at a special Town Meeting on September 12. The town plans to implement the exemption on July 1, 2017 for the Fiscal Year 2018 tax year, pending Governor Baker’s approval.

“With property values on the rise, many seniors living on fixed incomes are having a difficult time paying their bills,” said Representative Jones. “I’m proud to support the town’s new senior tax exemption so longtime Reading residents can enjoy meaningful tax relief and remain in their homes.”

“I was proud to join my colleagues in the Reading legislative delegation to work on making this tax relief bill a reality for the residents of Reading,” said Representative Dwyer. “It’s paramount that we do everything we can for those on fixed incomes to ensure that they can continue to live in their homes without added tax burdens.”

“As our population ages and we work to make our communities more elder-accessible, we must also be mindful that being elder-accessible also means being elder-affordable,” said Senator Lewis. “This important measure will give our senior citizens urgently needed financial relief to help make ends meet and provide reprieve from the threat of being priced out of their longtime homes.”

To participate in the program, applicants must be 65 or older and meet the qualifications for the state’s Senior Circuit Breaker program. If filing jointly, the second applicant must be 60 or older. Applicants are also required to be a homeowner in Reading for a minimum of 10 consecutive years, and living in a residence with an assessed value that is below the threshold set by the Senior Circuit Breaker tax credit (currently $720,000).

Applicants must file annually to receive the exemption, which is subject to approval by the Reading Board of Assessors. The Board can deny an exemption if it determines the applicant has excessive assets.

The Reading program is modeled after similar tax programs offered in Sudbury and Wayland. In the first year the exemption was offered in Sudbury, 118 seniors saved an average of $2,500 on their property tax bills.

Authorization for Reading’s senior property tax exemption program will expire three years after its implementation. Including this sunset clause will allow the town to evaluate the program before determining whether or not to go back to Town Meeting to ask the Legislature for an extension.

Governor Baker has until December 25 to sign the bill into law.