Tax relief options available for Ashland residents

Tax Exemption 

The various exemptions reduce the taxes that one must pay.  Exemptions are made available through state statute.  Some exemptions are available to anyone living in the Commonwealth while some require that the community first accept a state statute, meaning that a resident of one community might be able to take advantage of a particular exemption while a resident in a neighboring community might not be. In FY07 (the year ended June 30, 2007) Ashland seniors received 52 exemptions for a total property tax reduction of $22,760.  An additional 70 exemptions for $44,092 went to Ashland veterans of all ages.  In FY08 Ashland seniors received 229 exemptions for a total property tax reduction of $116,787.  An additional 77 exemptions for $40,911 went to Ashland veterans of all ages.  The large increase (from 25 and $12,500 to 211 and $109,087) in senior exemptions resulted from Ashland's acceptance of clause 41C ½ in the fall which allowed many more seniors to qualify for this exemption. Ashland was the first or second of the 351 communities in the Commonwealth to adopt the newly available clause 41C ½.  There are still only a handful of communities that have.

Tax Workoff
There is a program that allows seniors to “pay” their taxes by working in a Town department.  Seniors’ taxes are reduced by $7.50 per hour worked to a maximum of 100 hours per year per senior.  There are currently 24 slots available.  Several years ago the demand for slots was greater than had been budgeted so the program was expanded to the current 24.  As many of you are aware, the Town’s union contracts generally prohibit volunteers and non-union employees from performing work that would typically be performed by union members.  However, our unions – to their credit - have been very accommodating with regard to this program.  An example of one of the jobs performed through this program is opening all of the bus pass applications in the late summer.

Tax Deferral
Through this program a senior who qualifies may defer payment of all or a portion of his/her property taxes each year, provided the deferred taxes and accrued interest do not exceed 50 percent of the applicant's proportional share of the fair cash value of the property. Interest on deferred taxes accrues at 8% (Ashland has adopted a 4% interest rate).  This is not a tax exemption as the property taxes must ultimately be paid to the community upon the death of the taxpayer or sale of the property.  There are currently 4 seniors using this program.

Property Tax Circuit Breaker

It’s called the Circuit Breaker Tax Credit because it’s “triggered,” like an electrical circuit breaker when property payments exceed 10% of a senior citizen’s annual  income. Those who qualify will still be required to pay property taxes to their local communities, but at a reduced level.

You can also click here (http://tomworksforus.com/c1.htm) to visit a site created by Rep. Tom Sannicandro which answers many of the questions you might have about the property tax circuit breaker. 

There are other real estate tax exemptions that you might qualify for. For more information on the specific relief programs, please visit www.ashlandmass.com/assessor/public_documents/real_estate_exemption_information.pdf