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Tax Assistance & Deferral Programs

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As provided by state law, the Board of Assessors administers tax assistance programs for various eligible taxpayers. These programs are summarized briefly below. Any additional information can be obtained by contacting the Assessor's office at (508) 627-6140.

WHAT TYPES OF REDUCTIONS OF REAL ESTATE TAX ARE AVAILABLE?

There are some ways a taxpayer might be able to reduce his or her tax bill.  A taxpayer may qualify for a personal exemption from taxes, or a deferral of taxes.  Low or moderate income taxpayers may qualify for an exemption from the CPA surtax. Edgartown also has a program called “Senior Tax Workoff” whereby qualifying seniors can lower their taxes by working part-time for the town in certain capacities.

Applications must be filed every year by April 1st.

All exemptions have ownership, occupancy, and other qualifications that must be met as of July 1st of the fiscal year.

NOTE FOR OWNERS OF PROPERTY IN TRUST

 Trust ownership arrangements may affect qualification for a statutory exemption.  According to Department of Revenue guidelines, as a general rule, an applicant must be both the trustee and the beneficiary.   Applicants must submit a copy of the recorded trust instrument, including amendments, and a copy of the recorded schedule of beneficiaries.

 

 VETERANS                                               

CLAUSES 22, 22A, 22B, 22C, 22D, 22E

To qualify, the taxpayer must be a veteran, or the spouse of a veteran, or the parents of a veteran and:

  • must be a veteran or spouse of a veteran and
  • have a service-connected disability of 10% or more or
  • have been awarded the Purple Heart or
  • Gold Star parents or
  • be a veteran of the Spanish, Philippine, or Chinese Expedition or
  • have been awarded the Congressional Medal of Honor, Distinguished Service Cross, Air Force Cross, or Navy Cross

Exemption granted varies based on qualifications

BLIND PERSONS                                               

CLAUSE 37A

To qualify, the taxpayer must

  • be a legal resident of the Commonwealth of Massachusetts
  • own and occupy the property as his/her domicile as of July 1st
  • provide annually the current certificate of blindness issued by the Massachusetts Commission for the Blind

ELDERLY

CLAUSE 41C

To qualify, a taxpayer:

  • must be over 65 years of age as of July 1 of the fiscal year AND
  • must have primary residence in Massachusetts for ten years AND owned property in the state for five years AND must have occupied property as of July 1 of the fiscal year AND
  • must have a whole estate (the value of personal property excluding domicile) of less than $40,000 if single, $55,000 if married AND
  • must have an income less than $20,000 if single, $30,000 if married, after subtracting an allowable exclusion.
  1. Senior Exemption Application
  2. Taxpayer Guide-Blindpersons

ELDERLY, SURVIVING SPOUSE, MINOR CHILD                    

CLAUSE 17D

To qualify, a taxpayer:

  • must be over 70 years of age as of July 1 of the fiscal year OR must be a surviving spouse or surviving minor child
  • must have owned and occupied the property for five years AND
  • must have a whole estate (the value of personal property less domicile) of less than $40,000.
  1. Elderly, Surviving, Minor Exemption Application
  2. Taxpayer Guide-Surviving, Minor, Elderly

OLDER CITIZENS-PROPERTY TAX DEFERRAL                      

CLAUSE 41A

 The Clause 41A tax deferral program enables owners to defer payment of up to 100% of annual property taxes.  Deferred taxes accumulate, with simple interest at 8%*, as a lien on the property until it is sold or the owner(s) has died.  Applicants must be 65 years old as of July 1 of the fiscal year, have a maximum income allowed of $20,000*, and meet ownership and occupancy requirements.  A taxpayer who is eligible for a personal exemption is allowed to keep the exemption and defer the remaining taxes.              

*The interest and income requirements are under review and may be changed for subsequent fiscal years.

In addition to Clause 41A for older taxpayers, persons of any age having temporary financial difficulties may receive a partial or full deferral at the sole discretion of the assessors under Clause 18A. This deferral can only be granted for a maximum of three years.

Applicants should know that a deferral places a lien on the property, and that there is a maximum cumulative amount that can be deferred.  If you are interested, please speak with the Assessors’ office.

Upon approval, taxpayer is entitled to defer (delay) payment of any portion of the property tax bill at 2.0% interest.  All taxes are recovered upon transfer or sale of the property (16%).

Note that if there is an outstanding mortgage on the property, the bank or mortgage holder must sign off on the deferral agreement.

Documentation needed for these exemptions (41C,17D,41A) include:

  • Copy of birth certificate or driver’s license
  • Copy of death certificate (if surviving spouse)
  • Most recent year’s state and/or federal income tax return, including all schedules
  • Social security benefit statement (form SSA-1099)
  • Copies of 1099 for all other pensions, dividend, and interest accounts
  • Bank statement copies to verify all account balances as of July 1 of the fiscal year including:checking and savings accounts, stocks, bonds, IRA’s, CD’s, annuities, mutual funds

Other Assistance Programs-Documents & Guides

The Edgartown Board of Selectmen, under M. G. L. Ch. 59 §5K, has established a property tax work-off program for taxpayers over 60 years old.  Under the program, participating taxpayers volunteer their services to the town in exchange for a reduction in their tax bills.  This program is administered by the Edgartown Council on Aging and interested taxpayers should contact that department for more details. 

HELPFUL WEBSITES:                                      

Town of Edgartown-Council on Aging "The Anchors"

A brief overview of available options for taxpayers to reduce their annual property taxes.

The following table is intended only to give a general idea of what is available.   Many things are looked at when a person applies for an exemption.  Among them are: income, total assets, ownership, and occupancy.  Also, in certain conditions, if two or more persons, whether or not related or married, own a single parcel and each qualifies for a different exemption, each would be entitled to receive the exemption for which he or she qualifies.  In general, no exemption may reduce the tax due to less than 10% of the originally assessed tax.

In addition to the standard personal exemptions, low income taxpayers and low to moderate income seniors may apply for an exemption from the CPA surtax, the 3% added to the annual tax bill.  


PERSONAL EXEMPTIONS - GENERAL REQUIREMENTS

 

In addition to the requirements below, several exemptions have qualifications related to how long the taxpayer has owned and occupied his or her home as their domicile.

 

Basic                                                                                                  Max.                      Max.                      Tax Reduction

Clause                   Qualifications (as of July 1)                            Income                  Assets (a)              Amount

 

Elderly

  17D                      Age 70 or older                                                    N/A                        $40,000                 $175.00

  41C                      Age 65 or older - single                                      $20,000 (b)           $40,000                 $1000.00

  41C                      Age 65 or older - married                                   $30,000 (b)           $55,000                 $1000.00

 

 

 

Basic                                                                                                    Max.                      Max.                      Tax Reduction

Clause                   Qualifications (as of July 1)                              Income                  Assets (a)              Amount

 

Veterans

  22a-d                   10% disability or Purple Heart                            N/A                         N/A                         $ 400.00

  22A                      Loss of foot, hand or eye                                    N/A                         N/A                         $ 750.00

  22B                      Loss of 2 limbs or eyes                                       N/A                         N/A                         $1,250.00

  22E                      100% disability/10% service                               N/A                         N/A                         $1,000.00

  22(F)                    Paraplegic due to war injury                              N/A                         N/A                         100%

 

Other

  37A                      Legally Blind                                                         N/A                         N/A                         $500.00

  17D                      Surviving Spouse or                                            N/A                         $40,000                 $175.00

                              Orphaned Minor Child

  42                         Surviving Spouse or Orphaned                          N/A                         N/A                         100%

                     Minor Child of Police Officer or Fire Fighter

  18                         Extreme Hardship                                              see note (c)            see note (c)            Varies

 

(a) Maximum assets refers to the value of all the applicant's property including real estate, bank accounts, stocks, etc., the whole estate value.  The value of the applicant's domicile is not included.

(b) Income is reduced by an amount equal to the minimum Social Security income.  This amount is deducted from the applicant's income before qualifying.  (This amount changes annually and is determined by the Department of Revenue.)

Example:

Single applicant's miscellaneous income                                         $  18,000.00

Single applicant's Social Security income                                        $   5,250.00

Total income                                                                                        $  23,250.00

Deduct Social Security allowance per Dept. of Revenue                 $   3,571.00

Net income for exemption application                                              $  19,679.00

Applicant's income falls below the $20,000 limit.

 

(c) Persons who do not have the financial means to pay their taxes because (1) they are elderly and have a physical or mental illness, disability or impairment, or (2) they were called into active military service, may receive a partial or full exemption at the sole discretion of the assessors.  Documentation is required.  If the applicant owns the subject property with any other person or persons, all owners must independently qualify in terms of age, impairment, and financial means, in order for the applicant to be eligible for this exemption.