‘Tis the season of holidays and gift giving. It’s also the time of year most of us look to our finances to decide how much we can spend or need to save. In addition to spending for gifts for family and friends, another property tax payment will be due soon and income-tax time is just around the corner.
The town and the state offer programs that help some older or disabled residents save money or reduce their taxes. Read on to see what’s available and whether you, or someone you know, can benefit.
Harvard Elderly and/or Disabled Tax Assistance
Average property tax assistance is around $2,500. A committee appointed by the Board of Selectmen manages this local program. Money donated by Harvard residents is used to pay down property taxes of other residents who need assistance.
Criteria: 65 or older; unable to work due to age, illness, or accident; own and occupy property a calendar year before the application deadline; income less than $35,000 for a single resident, $45,000 for a couple. The EDTA committee will consider assets in making its decision. Watch newspapers and the Council on Aging for application deadlines and requests for contributions.
Senior transfer station permits
Permits cost seniors $25, for a savings of $235.
Criteria: 65 as of June 30. The discount is given at Town Hall when you buy your transfer station permit.
Bare Hill Pond sticker
Free, for a savings of $40.
Criteria: 65 as of June 30. Arrange with beach staff when stickers become available.
Local tax work-off program
A household can reduce property tax up to $750 by the owner working up to 93.75 hours for town departments. The Council on Aging manages the program. Applications are available in December every year.
Criteria: 60 or older; owned and occupied house at least one year; have appropriate skills for job assignments.
Local tax exemptions
Only one of these is permitted in any fiscal year. The following is a general overview. You should follow up with the Harvard assessor’s office for more specifics and forms.
- Resident over 65 – $1,000 exemption. Criteria: gross income less than $29,260 if single, $43,059 if married; assets (excluding house value) valued at less than $51,256 if single, $70,093 if married; lived in Harvard for the past five years or more and in Massachusetts for the past 10 years or more. [MGL Part I Title IX Chapter 59 Section 5 Clause 41C]
- Resident over 70 – $273.87 exemption. Criteria: 70 or older or are the surviving spouse of someone 70 or older; owned and occupied your Harvard house for the past five years or more; assets (excluding house value) valued at $53,169 or less. [MGL Part I Title IX Chapter 59 Section 5 Clause 17D]
- Blind resident – $500 exemption. Criteria: provide a Certificate of Blindness from the Massachusetts Commission on Blindness; own and occupy your Harvard house as your primary residence. [MGL Part I Title IX Chapter 59 Section 5 Clause 37A]
- Disabled veteran resident – from $400 to a full exemption, depending on veteran’s ability to met the criteria set by MGL. Criteria: veteran, spouse, or surviving spouse of veteran; service-connected disability of 10 percent or more verified by the Veterans’ Administration, or awarded the Purple Heart; lived in Massachusetts for the past five years or more or at least six months before entering the service. [MGL Part I Title IX Chapter 59 Section 5 Clause 22]
Local tax deferral
Many towns have modified the state’s tax deferral program to meet local needs, although Harvard has not. The state plan allows residents to postpone paying property tax until the property is sold or transferred or until the owner dies, when all tax and interest must be paid.
The total amount due cannot exceed 50 percent of total assessed value. The state plan calls for 8 percent interest, but towns can set lower limits. Sudbury is 2.5 percent, Duxbury is 4 percent.
State criteria: 65 or older (other towns have lowered the age); own and occupy the property and have for at least five years; lived in Massachusetts for the last 10 years or more; annual income $20,000 or less (or local limit – Sudbury is $74,000, Duxbury – $40,000). [MGL Part I Title IX Chapter 59 Section 5 Clause 41A]
This is like a reverse mortgage, but without the high bank costs. Let the Board of Selectman know if you want Harvard to pursue modifying the state plan.
State senior “Circuit Breaker” tax credit
There is a state tax credit of up to $960 if your property tax plus 50 percent of your water charges (for those with town water) costs you more than 10 percent of your gross income.
Criteria: 65 or older; assessed value of home is less than $764,000 (2010); total income is less than $51,000 if single, $64,000 if head of household; $77,000 if married filing jointly. Check tax-filing instructions or talk to your accountant about this option.
According to the state Department of Revenue, in 2001, 16 Harvard filers received an average circuit-breaker credit of $312. In 2009, 70 filers received average credit of $890.
All of these programs are confidential and most funding comes from taxes seniors have already paid to the state or town to help those who came before them. The programs help us keep experienced people in town who might otherwise have to move because taxes keep increasing, but retirement income doesn’t.
If you’re a senior or someone close to one, give the gift that doesn’t need wrapping: check out these programs to see if one or more apply. And if you don’t need the programs and are feeling generous this month (or next year), contribute to the Elderly/Disabled Tax Assistance Fund. It’s tax deductible and helps your neighbors. Send your contribution to the Town of Harvard, EDTA Fund, 13 Ayer Road 01451.
Happy holidays.
Scott Road resident Laura Andrews is a community member of the Elderly/Disabled Tax Assistance Committee..
