Salem Expands Senior Tax Exemption

Salem MA

29 December, 2020

1:28 PM

Description

SALEM, MA — Salem has expanded a program that expands the property tax exemption for some senior residents. The Senior Tax Exemption Program (STEP) allowed seniors to have a percentage of their circuit breaker income tax credit deducted from their annual property tax bill. Previously restricted to lower-incoming Salem residents, the threshold will increase to seniors making under $61,000 who are not a head of household, under $76,000 for heads of household and under $91,000 for married couples. The previous thresholds were $27,000 for heads of households and $32,8000 for married couples — limiting the eligible seniors to only 40 in the city last year. 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 disqualified from the exemption. "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 15 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." Following Driscoll's proposal and City Council adoption, the measure was sent to the state legislature where State Rep. Paul Tucker and State Sen. Joan Lovely helped advance it to Gov. Baker's desk. It was signed on Dec. 21. STEP applicants must satisfy a 10-year residency requirement in the city to be eligible. Applications for the STEP program for the FY2021 tax year will be available starting Jan. 11 here 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.