Salem Property Tax-Relief Proposal Filed As $239M High School Override Vote Looms

SALEM, MA —A Salem property tax relief package would expand assistance for seniors, low-income residents, and individuals with disabilities through changes to the city property tax referral program, an increase in the senior tax work-off benefit and the creation of a new Taxpayer Aid Fund

Mayor Dominick Pangallo said the changes proposed to the City Council build on the city's existing 17 property tax relief programs.

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Pangallo said the proposal is aimed at widening access to relief programs already in place and adding another option for residents who qualify.

"Salem already offers a wide range of property tax exemptions and abatements, but these measures add to those to continue pushing for a more affordable Salem," Pangallo said. "The package I filed today strengthens existing programs and creates new options to further protect seniors and residents with disabilities."

The package would more than double the income threshold for Salem's senior property tax deferral program, setting it at the highest level allowed under state law. That change would double the number of Salem seniors who would qualify.

Another provision would increase the maximum benefit in the city's senior tax work-off program by 33 percent. The benefit would rise from $1,500 to $2,000, which is the highest amount allowed by statute.

The package also calls for the creation of a Taxpayer Aid Fund to provide direct assistance to seniors and residents with disabilities. A city committee would oversee the fund and distribute tax relief to qualifying residents each year.

The tax-relief proposals come as the city seeks a quarter-billion-dollar property tax override for a debt exclusion for a new high school, which goes before voters on May 5.

"The timing of this proposal complements our ongoing efforts to reduce the local cost impacts for the new high school project," Pangallo said. "The Building Committee has already made design and building choices that have reduced that project's cost by $242 million, and other measures are being proposed to shift more of the local cost from taxpayers to tourists.

"Combined with today's property tax relief proposal, we're taking positive actions to address the affordability challenges in our community and ensure we can advance the high school project in as thoughtfully and fiscally responsible a manner as possible."