You may be eligible to reduce a portion of the taxes assessed on your domicile if you meet the qualifications for one of the personal exemptions allowed under Massachusetts Law. Qualifications vary, but generally relate to age, ownership, residency, disability, income or assets. You may be eligible for an exemption if you fall into any of the following categories: blind; U.S. veteran with a service connected disability of 10% or more; surviving spouse; minor child of deceased parent; or a senior citizen age 65 and older.
Your application must be filed annually with the Manchester Board of Assessors no later than 90 days from the date of mailing of the actual (third quarter) tax bill. This deadline cannot be extended or waived by the assessors for any reason. If your application is not timely filed, you lose all rights to an exemption and the assessors cannot by law grant you one. An application is filed when received by the assessors.
The following is a brief explanation of the exemptions Manchester has.
Clause 37A – Blind Persons
The amount of this exemption if $500. For eligibility, an individual must satisfy the following requirements. The first year an exemption is sought, proof of blindness in a letter from a reputable physician certifying blindness in accordance with the specification of the Commission for the Blind is acceptable. For each subsequent year, a certificate from the Commission for the Blind attesting to a condition of legal blindness must be provided.
The blind person must occupy the property as his or her domicile on July 1st of the tax year. And the blind person may own his domicile solely, as a joint owner or as a tenant in common. The holder of a life estate also satisfies the ownership requirement.
Clause 22 – Qualifying Veterans
The amount of this exemption varies between $400 and total exemption, depending upon the wartime service connected disability. An applicant must provide to the Manchester Assessors certification of a wartime service connected disability from the Veterans Administration or the branch of service from which separated. Eligibility requirements are as follows:
1. veterans with a wartime service connected disability of 10% or more as determined by the V.A.
2. veterans who have been awarded the Purple Heart, Congressional Medal of Honor, Distinguished Service Cross, Navy Cross or Air Force Cross.
3. gold star mothers and fathers.
4. spouses and surviving spouses of veterans entitled to exemptions.
5. surviving spouses of World War I veterans so long as they remain unmarried.
6. veterans who suffered in the line of duty the loss or permanent loss of use of one foot or one hand or one eye.
7. veterans who suffered in the line of duty the loss or permanent loss of use of both feet or both hands or both eyes.
8. veterans who suffered total disability in the line of duty.
9. veterans’ spouses (who do not remarry) of soldiers and sailors who dies in combat at the islands of Quemoy and Matsu.
10. veterans who are certified by the VA as paraplegic.
Wartime service is defined as service performed by a “Spanish War veteran,” a “World War I or World War II veteran,” a “Korean veteran,” a “Vietnam veteran,” a “Lebanese peace keeping force veteran,” a “Grenada rescue mission veteran,” a “Panamanian intervention force veteran,” a “Persian Gulf veteran,” or a member of the “WAAC.”
In addition, an individual must have been a Massachusetts resident prior to entering the service or have lived in Massachusetts for not less than 5 years prior to filing for exemption.
Clause 17D – Surviving Spouse, Minor Child or Elderly Person
The amount of this exemption is $175. For eligibility, a surviving spouse or a minor with a parent deceased who owns and occupies the property as his domicile as of July 1st of the tax year. An elderly person 70 years old or over as of July 1st who has owned and occupied the property as his domicile for at least 10 years. A person may own this property solely, as a joint owner or as a tenant in common. The holder of a life estate satisfies the ownership requirement.
In addition, a person’s whole estate, real and personal, cannot exceed $40,000, excluding the total value of the subject property. This clause prescribes no limitation on annual income for exemption eligibility. An applicant must provide to the Manchester Assessors whatever information is required to establish eligibility. This information may include, but not be limited to birth certificates, evidence of domicile and income tax returns.
Clause 41C – Elderly Persons
The amount of this exemption is $1,000. For eligibility, an individual must be 65 years or older as of July 1st of the tax year. In addition to so owning and occupying the subject property, an individual must have been continuously domiciled in Massachusetts for the 10 years preceding the application and have owned and occupied the property or other property in Massachusetts for 5 years. A person may own this property solely, as a joint owner or as a tenant in common. The holder of a life estate also satisfied the ownership requirement.
Eligibility is also based on annual income and your whole estate. Gross receipts minus social security allowance must be less than $20,000 if you are single and $30,000 if married. Your whole estate less the value of the home cannot exceed $40,000 if single and $55,000 if married. The Assessors will require evidence of this, including copies of bank balances and all interest earned, as well as statements of all money earned and total amounts received from pensions.
Clause 41A – Deferral
Unlike an exemption which discharges a tax obligation, Clause 41A permits an elderly taxpayer to postpone payment of property taxes. A taxpayer who already receives a personal exemption is not precluded from seeking to defer the balance. If you qualify, you must enter into a written tax deferral and recovery agreement with the Manchester Assessors who put a lien on the property to be recorded at the Registry of Deeds. Joint owners and mortgagees must give prior written approval. The agreement requires the deferred taxes along with 8% annual interest (or less if approved at Town Meeting) be repaid in full (1) when the property is sold or transferred, (2) upon your death, or (3) upon the death of your surviving spouse (if he or she qualifies for a deferral and enters into a new tax deferral
agreement). The interest rate goes up to 16% upon the date of death or transfer; 6 months after the property is sold or taxpayer’s death, the treasurer may seek to foreclose the lien on the property. Once the deferred taxes are repaid the lien is released.
You may file an application if you are:
1. 65 years old or older
2. owned and occupied the property as your domicile
3. owned and occupied any property in Massachusetts as your domicile for at least 5 years
4. lived in Massachusetts for at least the prior 10 years
5. have an annual income not more than $40,000 (proof is required)
Any questions or for further information, contact the Manchester Board of Assessors at 526-2010.
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