Senior Tax Exemption Program proposed by Mayor Kim Driscoll, passed through legislature last week by Rep. Paul Tucker and Senator Joan Lovely
Salem, Massachusetts – On December 21st Governor Baker signed into law a special act establishing the Salem Senior Tax Exemption Program (STEP), a new and further-reaching property tax exemption program for qualifying older adults in Salem. The measure was proposed by Mayor Kim Driscoll and, following adoption by the Salem City Council, was sent to the state legislature, where State Representative Paul Tucker and State Senator Joan Lovely helped advance it to the Governor’s desk.
STEP allows qualifying seniors to have a percentage of their circuit breaker income tax credit deducted from their annual property tax bill. The STEP exemption will be available to more Salem seniors than the current exemption, which is constrained by state law to a lower income-eligibility level. For FY2021, STEP will be available to Salem seniors who applied for and received the Circuit Breaker Tax Credit on their 2019 taxes.
The income threshold under STEP is $61,000 (not head of household) and $76,000 (head of household) for those who are single and $92,000 for married couples, where the older exemption thresholds were $27,000 for those who are single and $32,800 for married couples. STEP will greatly expand the number of Salem seniors who can get a property tax exemption: last year, under the old exemption limits, only 40 Salem seniors applied for an exemption; under the STEP limits, however, hundreds of Salem seniors are now eligible to have a portion of their property taxes waived.
In addition to expanding property tax exemptions to many more Salem seniors, STEP’s income thresholds will automatically adjust each year according to the cost of living. STEP additionally eliminates the asset restrictions imposed by the existing exemption statute, to ensure that seniors who may be house-rich but income-limited are not unfairly disqualified from the exemption.
STEP applicants must also satisfy a ten-year residency requirement in the City, which was established to ensure the benefits of the larger exemption accrue to those who have spent the most time contributing to the City’s existing tax base and investing in the success of Salem.
“The Seniors Tax Exemption Program continues our commitment to making Salem an even more age-friendly community,” said Mayor Kim Driscoll. “Salem is a place where residents of all ages can live and grow old in comfort. While we have managed, through responsible fiscal practices, to keep tax changes relatively modest over the last fifteen years, it’s important that we recognize the disproportionate burden felt by income-limited older residents. As the cost of living increases in Salem and across the Commonwealth, we have a responsibility to develop strategies to help our residents most in need of assistance.”
“I was pleased to work with the City of Salem officials including Mayor Driscoll and Senator Lovely to file legislation providing property tax relief for qualifying senior citizens,” said State Representative Paul Tucker. “Thanks to Mayor Driscoll and the City Council for making this a reality and Governor Baker for signing our legislation into law.”
“I am so pleased that Governor Baker signed into law the bill that Representative Tucker and I filed to improve the financial situation of Salem seniors who own property in the city,” said State Senator Joan B. Lovely. “I laud the efforts of Mayor Driscoll and the City Council to improve Salem’s standing as an age-friendly community and am confident that this law will help Salem’s senior citizens, many of whom live on fixed incomes.”
Applications for the STEP program for the FY2021 tax year will be available starting January 11, 2021 at www.salem.com/step or by calling the City Assessor’s office at (978) 619-5608. Applications must be received by April 1, 2021 in order to be considered for the current fiscal year.
