Pushback: A great way to aid elderly, disabled with their taxes

Al Norman

Al Norman

By AL NORMAN

Published: 06-18-2024 8:04 PM

On July 9, 1998, acting Gov. Paul Cellucci signed into law An Act Establishing A City Or Town Aid To The Elderly And Disabled Taxation Fund. The proposal reached Greenfield 26 years later.

Chapter 166 of the Acts of 1998 added Section 3D to Chapter 60 of the Massachusetts General Laws, which authorizes a city or town, subject to the approval of the commissioner of revenue, to create a program, “whereby the taxpayers of said city or town may voluntarily check off, donate and pledge an amount … to establish a city or town aid to the elderly and disabled taxation fund.”

Greenfield has almost 4,100 people age 65 or older, 574 living in poverty. The Greenfield City Council Ordinances Committee voted unanimously on May 8 to support a motion offered by Councilors Wahab Minhas and Michael Mastrototaro to accept this elderly and disabled taxation fund. If the Greenfield City Council passes a majority vote to accept this law on June 20, any citizen, business, civic or religious organization, can donate to this locally controlled fund. Donations will be deposited into a special account in the city’s general treasury, in the custody of the treasurer. The treasurer invests these funds, together with the interest earned, for the sole purpose of “defraying the real estate taxes of elderly and disabled persons of low income.”

Greenfield would set up a Taxation Aid Committee “to adopt rules and regulations to carry out the provisions of this section and to identify the recipients of such aid.” By law, the committee consists of the chairperson of the Board of Assessors, the city treasurer, and three residents to be appointed by the mayor.

The state Department of Revenue keeps no formal list of participating cities and towns on the state’s website. An internet search revealed at least 30 municipalities — most of which adopted the program 10 to 20 years ago. Needham (pop. 32,091), for example, has raised $182,293 over the past 12 years for the elderly/disabled tax fund, making 421 grants to local residents averaging $433. Assessors in Natick (pop 37,006) report that $258,000 has been raised since 1999.

In Westwood (pop. 16,266), their fund was established 25 years ago. The town’s website says: “Over the years, the Fund has assisted many long-time Westwood residents who wish to remain in the Town and homes they love. Since its inception, the Fund has provided assistance to a number of these qualified residents by directly paying a portion of their tax bill.”

The town of Northborough (pop 15,741) started their Elderly & Disabled Taxation Fund 23 years ago. “The program is funded by donations made by taxpayers with payment of their municipal tax bills, and by donations from local businesses and community groups. Program policy is defined and implemented by the committee. The committee accepts applications from January through March and disburses awards by June.”

Hingham (pop. 24,284), started a Tax Fund 24 years ago, with eligibility defined as:

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■“Elderly” a person who is at least 60 by July 1.

■“Disabled” a person who is not able to work; supporting documentation required.

■Applicant must be elderly/disabled title owner of the property or have a life estate.

■Applicant has lived in Hingham and held title to taxed property for 1 or more years.

■Total income (pensions, IRAs, savings interest, stocks/bonds, etc. must be under 80% Area Median Income ($71,550 for household of 2). Assets (stocks, bonds, CD’s, IRA’s, annuities, will be considered in determining eligibility and aid amount.)

■Unusual expenses will be considered, to address unforeseen situations.

Over the last two months that this proposal has been in the Greenfield Ordinances Committee, no one testified against this proposal at the committee meetings. Ninety-seven Greenfield residents signed onto the motion as submitted to the City Council.

In the past, if homeowners got caught in a downward spiral of back taxes, it could lead to foreclosure, and loss of excess home equity. This fund is one more way we can help our neighbors from slipping into traumatic debt.

The assistant director of assessing in Natick told us: ”My boss likes to say, it’s one way for our assessor’s department to be a help — as opposed to being the ones delivering the dreaded tax bills.” Charitable contributions to governmental units, by the way, are tax deductible under Section 170(c)(1) of the Internal Revenue Code.

On June 20, our City Council has a chance to deliver some good news to our neighbors in need. I hope other Franklin County towns will follow Greenfield’s lead.

Al Norman’s Pushback column appears twice monthly in the Recorder.