News: Press Releases & Statements
House Approves Jones Plan for Senior Tax Relief
11.16.05 | Contact: Meredith Warren, 617-722-2100
BOSTON--Many more elderly homeowners would be eligible for relief from their rising property taxes next year under a proposal unanimously approved by House lawmakers today.
The plan, crafted by House Minority Leader Bradley H. Jones Jr. and co-sponsored by House Republicans, raises the eligibility threshold so that more homeowners and renters over 65 will qualify for the so-called “Senior Circuit Breaker Credit.”
The credit allows seniors who meet certain income standards to claim a break of up to $840 on their state income tax form. It was created to help low-income seniors cope with the higher property taxes that have resulted from a spike in Massachusetts home values.
“Our senior citizens are already facing steep increases in home heating costs this winter, and many will soon be forced to make tough choices in order to stay warm,” said Jones, R-North Reading. “Allowing more seniors to qualify for a break on their property taxes will keep money in their pockets and help them through this tough time.”
Currently, seniors whose homes are valued at $452,000 or less can apply for the circuit breaker credit. Jones’ plan raises the bar to $600,000 and creates a new system for increasing that amount every year to account for rising property values.
The formula the state uses now to calculate the threshold for the credit is based on inflation. However, home prices have been rising faster than the rate of inflation, which means that many seniors are being priced out of the tax credit, even though they may have qualified for it in the past.
Jones’ plan would implement a system where the annual adjustment in the eligibility threshold is equal to the increase in the average assessed value of a home in Massachusetts. As a result, more seniors will be able to get tax relief through the senior circuit breaker, and seniors who qualified in the past can continue to take advantage of the credit.
The plan now goes to the Senate for approval before it heads to Gov. Mitt Romney’s desk for his signature.
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