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APPROPRIATION COMMITTEE-2.020 ATM 25 March 2020
<br /> Lexington Property Tax Deferral History
<br /> Fiscal Year Interest Number of Income Average Total
<br /> Rate Deferrals Threshold Deferral Deferred
<br /> 2005 8.00% 16 $40,000 $4,688 $75,000
<br /> 2006 8.00% 16 $40,000 $4,625 $74,000
<br /> 2007 4.77% 15 $40,000 $4,905 $73,578
<br /> 2008 4.92% 20 $40,000 $5,092 $101,832
<br /> 2009 1.66% 26 $40,000 $5,938 $154,380
<br /> 2010 0.68% 28 $50,000 $6,287 $176,034
<br /> 2011 0.34% 28 $51,000 $6,335 $177,391
<br /> 2012 0.26% 29 $60,000 $6,601 $191,457
<br /> 2013 0.18% 29 $60,000 $6,898 $200,051
<br /> 2014 0.15% 29 $65,000 $7,637 $221,479
<br /> 2015 0.12% 28 $65.000 $8,089 $226,501
<br /> 2016 0.25% 43 $65,000 $8,524 $366,553
<br /> 2017 0.66% 41 $70,000 $9,094 $372,859
<br /> 2018 0.82% 42 $70,000 $9,569 $401,897
<br /> 2019 1.96% 40 $70,000 $10,046 $401,850
<br /> 2020 2.55% TBD $75,000 TBD TBD
<br /> The Committee believes that an increase of the tax deferral income limit to$90,000 will offer needed prop-
<br /> erty tax relief to some moderate-income senior homeowners who cannot currently take advantage of the
<br /> deferral program. The Committee also believes that the state Circuit Breaker limit for married couples is a
<br /> reasonable measure of financial need,particularly in view of Lexington's relative high property tax. Given
<br /> the nature of the program,which essentially involves well-secured temporary loans by the Town,the burden
<br /> on and financial risk to the Town are minimal.
<br /> The Committee recommends approval by a vote of(8-0).
<br /> Article 7
<br /> Petition General Court to Amend Legislation Regarding Tax Deferrals
<br /> Funds Requested Funding Source Committee Recommendation
<br /> None N/A Approve (8-0)
<br /> This article requests that the Select Board be authorized to seek special legislation which would allow
<br /> Lexington to delay, for one year,the requirement of Chapter 59, §5, Clause 41A of the General Laws that
<br /> the interest rate for deferred property taxes increase to 16%upon the death of a person whose taxes have
<br /> 4 The general law originally provided for an interest rate of 8%but was subsequently amended to allow a town,by
<br /> vote of its legislative body,to establish a lesser rate.Effective in 2007,Town Meeting adopted a variable rate intended
<br /> to match what the Town would otherwise earn on these funds for the year in question. See Appendix D. Historical
<br /> interest rates are set forth in the table below.See also Brown Book p.xii. The interest rate for FY2021 will be 1.41%.
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