AARP Supports Legislation to Help Seniors Stay in Their Homes

AARP is backing new legislation, An Act Relative To Senior Property Tax Deferral- House Bill 3272 and Senate Bill 2018, that would help older adults in Massachusetts delay paying property taxes. This would make it easier for them to stay in their homes longer. As people age, staying in their homes and communities becomes increasingly important, but high property taxes can make that difficult.

A property tax deferral lets eligible seniors postpone paying their property taxes until they sell their home or pass away. It’s not a tax break; it’s more like a loan that gets paid back later. This can be a big help for people who have valuable homes but limited income.

AARP sent a letter to the Massachusetts Joint Committee on Revenue, urging them to move these bills forward. AARP believes these updates will help older residents age with dignity and peace of mind. Read the letter here.

“The property tax is the most burdensome tax for many individuals with low incomes and older people,” said Jen Benson, AARP Massachusetts State Director. “The tax is imposed on an illiquid, indivisible asset rather than income. Thus, many people, particularly people with low incomes, have difficulty coming up with the money to pay for it”.

What Would These Bills Change?
The legislation proposes several updates to the program:

• No More 10-Year Residency Rule: Right now, you must have lived in Massachusetts for 10 years to qualify. The new bills would remove that rule so more seniors can apply.
• No More 5-Year Ownership Rule: You also currently need to have owned or lived in your home for the past 5 years. That would be removed too, helping people who’ve recently moved or inherited a home.
• Lower Interest Rates: Instead of a fixed (and often high) interest rate, the new rules would tie the rate to your town’s or the state’s bond rate- usually much lower. That means you’d owe less in the long run.
• More Time After a Loved One Passes: If a homeowner passes away, the bill allows interest to keep building for one more year. This gives families more time to settle the estate without rushing to pay off the taxes.
• Fairer Income Rules: The bills also clarify how income is calculated, making it easier for people with small businesses or irregular income to qualify.

Property taxes are based on the value of your home, not your income. So even if your income goes down, your tax bill might not. These changes would help seniors who are “house rich but cash poor” stay in their homes without the stress of a big tax bill.

If the Joint Committee on Revenue favorably passes the bill, it would go to the full House and Senate for a vote before it goes to the Governor for her signature.