Hardship Clause 18 & Temporary Hardship Clause 18A

Hardship, Clause 18

The hardship exemption allows the Board of Assessors to grant up to a full property exemption for taxpayers who by reason of age, infirmity, and poverty, are in the judgement of the Assessors unable to contribute fully to their tax liability. The Board may also grant an exemption based upon a financial hardship resulting from a change to active military status.

Additional requirements include ownership and occupancy of the property as of the July 1 for the fiscal year in question. The applicant must be an individual and not a business entity or corporation. All co-owners must independently qualify for the exemption to be granted. Unlike deferral clauses, there is no lien placed on the property and no pay back of abated taxes. Deadline for filing is April 1 unless the first falls on a weekend or holiday in which case the deadline is the next business day.

Temporary Hardship, Clause 18A

The temporary hardship exemption gives taxpayers the ability to defer up to 100% of their property taxes. To qualify, taxpayers, regardless of age, must have a demonstrated financial hardship and lack the resources to pay the taxes because of unemployment, illness, change to active military status, or other reason as determined by the Assessors. Applicants may defer all or part of their property taxes for up to three consecutive years.

The deferred taxes plus interest must be paid with the first of up to five annual installments due two years after the last year of the deferral. If the property is sold or upon the passing of the applicant during the deferral period, taxes plus interest must be paid as well.

Additional requirements include ownership and occupancy as of July 1 for the fiscal year in question and Massachusetts residency for the preceding 10 years. Deadline for filing is April 1 unless the first falls on a weekend or holiday in which case the deadline is the next business day.

Applicants should know that the deferral places a lien on the property. However, for those with limited income and ability to make annual property tax payments, the program offers a viable alternative for managing property tax payments and finances in general.

Anyone who thinks they might be interested is encouraged to contact the Assessing Office at 617 625-6600 x3100 or e-mail at assessing@somerville.gov