Jones, Tarr Secure Passage of Property Tax Exemption for NR Seniors

House Minority Leader Bradley H. Jones, Jr. (R-North Reading) and Senate Minority Leader Bruce Tarr (R-Gloucester) have secured the passage of a home rule petition that will allow North Reading to implement a new property tax exemption program for qualifying homeowners who are 65 or older.

House Bill 4784, An Act authorizing the town of North Reading to establish a means tested senior citizen property tax exemption, was enacted by the House and Senate on November 7. The bill is now on Governor Maura Healey’s desk for her review and signature.

Representative Jones and Senator Tarr noted the property tax proposal will offer financial relief to qualifying residents who are 65 and older and mirrors the eligibility guidelines used by the Massachusetts Senior Circuit Breaker income tax credit, which is currently capped at $2,730 for tax year 2024. North Reading’s proposal is similar to tax policies that have been adopted in other Massachusetts communities, including Reading and Wakefield, as a way to help older residents remain in their homes.

“Rising property taxes across the state have created significant financial challenges for many elderly residents who are living on fixed incomes,” said Jones. “North Reading officials recognize this problem and have chosen to pursue a pro-active legislative solution to help many longtime residents remain in the community. I’m pleased to have worked with Senator Tarr on the town’s behalf to pass this bill, which will have a positive financial impact on local seniors.”

“This legislation authorizes a powerful and practical tool for North Reading to provide meaningful tax relief for seniors, helping them to remain in the community, and to continue contributing to the life of the town in so many ways,” said Tarr. “I appreciate the leadership of the Town Administrator and the Selectboard in moving this forward, and the opportunity to work with Representative Jones to secure the state’s approval for it to be put into action.”

Jones and Tarr first filed the home rule petition on June 18, one day after the proposal received a unanimous vote of approval by the North Reading Select Board. The Board’s vote came less than a week after the tax exemption language had been passed by Town voters as Article 18 at the June 11 Spring Annual Town Meeting.

House Bill 4784 authorizes the North Reading Select Board to annually set a cap on the tax exemption of up to 50 percent of the amount of the Senior Circuit Breaker income tax credit for which the applicant qualified in the previous year. Applicants must be 65 or older at the close of the previous year, although the second person on a joint application can be 60 or older.

In addition, applicants must own and occupy a residence with an assessed value that is below the previous year’s threshold set by the Senior Circuit Breaker tax credit, which is currently $1,172,000. All individual applicants, and at least one applicant filing jointly, must also be a homeowner who has lived in North Reading for a minimum of 10 consecutive years to qualify.

House Bill 4784 requires individuals and couples seeking a tax exemption to file an application annually. The North Reading Board of Assessors can deny an application if it determines the applicant has excessive assets.

North Reading has included a three-year sunset clause in its home rule petition. Jones and Tarr noted that the sunset clause will give town officials the flexibility to periodically evaluate the tax exemption and to make changes as needed, with the option of extending the program through the filing of future legislation.