Tax Deferral, Clause 41A

Taxpayers should be aware of a significant change to the Tax Deferral, Clause 41A program put forth by the Mayor and approved by the City Council in FY 2016.  Clause 41A allows those 65 and older to defer up to 100% of their property taxes until such time that the property is sold or upon the death of the applicant.  Prior to FY 2016, deferred taxes were assessed an annual interest charge of 8% and an applicant’s income could not exceed $40,000.  With the change enacted by the City, the interest rate has been lowered to 2.5% per year and income limit has been increased to $86,000.

Additional eligibility requirements include ownership and occupancy in the Somerville property for 5 years and age 65 by the July 1 previous to the start of the new fiscal year.  Applications must be filed annually by no later than 3 months after the issuance of the actual bill.  Deadline for filing is April 1 unless the first falls on a weekend in which case the deadline is the next business day. 

Qualifying for the deferral does not prevent an applicant the ability to qualify for other exemptions such as an elderly (clause 41C or 17D), veteran (clause 22), or other.  Applicants should know that the deferral places a lien on the property and requires payment of the deferred taxes upon sale of the home or the passing of the applicant.  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 [email protected].