HomeMy WebLinkAbout2017-11-28-TDES-min Selectmen's Tax Deferral and Exemption Study Committee
Meeting Minutes
November 28, 2017
A meeting of the Tax Deferral and Exemption Study Committee was called to order at 7:00 PM on
November 28, 2017,in the Reed Room at the Lexington Town Office Building.
Members present were: Vicki Blier,Pat Costello, Dick Bair,Pam Joshi, Appropriation Committee liaison
John Bartenstein and Carolyn Kosnoff,Assistant Town Manager for Finance.
The purposes of the meeting:
I. Discussion of G.L.,c.59, Section 5, Clauses 41C �/z and 5C �/z and their effect on Town finances
should either be adopted.
2. Review of new property tax relief bills in the State Legislature
3. Update on preliminary examination of the Residential Exemption by a Town working group.
Minutes of the May 17 meeting were reviewed and amended for posting.
The committee chairs provided information describing the attributes of Clauses 41C �/z and 5C�/z.
Clause 4 1 C �/z allows a Town,by referendum vote, to adopt a property tax exemption equal to 5-20% of
the Town's average residential valuation to certain seniors over age 70 who have a household income no
greater than the lowest qualifier for the previous calendar year's Massachusetts State Senior Circuit
Breaker Tax Credit law, the Single Individual limit. That limit was $57,000 in 2015, the most recent year
for which we have Circuit Breakers usage data. Towns may opt to lower the qualifying age to 65 and
may increase the income limits to match the Circuit Breaker's higher income limit tiers: Single/head of
household and Married/filing jointly. The Clause has no limit on assets or house value.
If adopted,41C �/z would replace Clause 4 1 C which currently provides aproperty tax exemption of
$1,000 for qualified persons over 65 and has a net cost to the Town of$13,500. To maintain at least the
$1,000 exemption amount currently allowed, a 9% exemption would need to be granted based on an
average 2016 residential parcel of$823,000. The net cost to the Town to implement 41C 1/2 would
depend on the exemption amount and the number of recipients minus $29,500 to be reimbursed by the
state.
Clause 5C �/z allows a Town,by vote of Town Meeting, to increase the benefit amounts of all personal
property tax exemptions by any percentage up to 100%. This additional percentage is applied uniformly
to all personal property exemptions and cannot be applied selectively. A 30%increase to all property tax
exemptions in Lexington would cost the Town $22,380.
Committee members offered to collect more data before the next meeting:
• Pat Costello to compile and distribute data on usage of 4 1 C �/z and 5C �/z by nearby Towns
• Pam Joshi agreed to investigate use of American Community Survey census data for more reliable
data sources in predicting impact of differing financial estimation scenarios
Pending legislation of interest:
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• H4001 Means Tested Senior Citizen Property Tax Exemption-provides a statewide Sudbury type
option for senior property tax relief(in third reading) and
• H4003 Property Tax Deferrals for Seniors -provides a one-year period for heirs to pay deferred
property taxes coming due upon the death of the deferring homeowner before the interest rate
increases to 16% (in third reading).
Vicki Blier reported that the working group providing preliminary analysis to the Selectmen of the
impacts were the Town to adopt a Residential Exemption will recommend that the Board of Selectmen
appoint an ad hoc committee for further investigation.
The meeting adjourned at 8:55 PM.
Next Meeting: TBD
Respectfully submitted,
Dick Bair
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