New Natick Senior Property Tax Break Model Heads To Select Board

NATICK, MA — A two-year effort to study what a new property tax exemption for Natick seniors would look like is done, and now the Select Board will begin discussions on the matter.

The Natick Senior Property Tax Exemption Committee, chaired by Select Board member Susan Salamoff, began studying the "feasibility and the impact" of a potential senior means tested exemption (SMTE) in May 2019 — although the idea dates back to 2015, when the Select Board sponsored a Town Meeting article about it.

The Natick Board of Assessors already offers property tax breaks to seniors, veterans and the disabled ranging from $280 to $1,600 per year. Those break have amounted to between $278,000 and $288,000 annually in recent years. Natick also offers a senior tax deferral program, where a qualified homeowner can push off paying taxes until they sell or transfer their home.

The proposed SMTE would offer qualified Natick seniors a new property tax discount that could be no higher than the prior year's state circuit breaker tax credit — it was $1,150 in 2020. The circuit breaker credit is an exemption seniors can claim when filing annual income taxes.

Natick's program would allow the Select Board to cap the amount of money used each year for the means-tested senior exemption. The money for the exemption would come from increasing property taxes. Salamoff's committee estimated a $25.57 increase for the average Natick single-family homeowner if the town spent $300,000 per year on the program. On the high end, allocating $700,000 for the program would hike taxes $57.52. All taxpayers, including those who would get the exemption, would end up paying the increase, according to the proposal.

The program could help low-income Natick seniors stay in their homes as property values — and tax bills — rise with limited options for senior housing around, Salamoff said.

The Natick Select Board will discuss the Senior Property Tax Exemption Committee's findings at Wednesdays meeting. Town Meeting would have to authorize the Select Board to seek permission from the state Legislature to create the means-tested exemption.

Several nearby towns including Wayland, Concord and Sudbury, offer a form of SMTE. Some towns, like Brookline and Lexington, studied the idea of an SMTE, but never moved to implement it.