Thursday, April 13, 2000 Older Editions

Seniors can get property tax break from state

By Neil Fater

Across the state, many senior citizens have been seeing both new schools and their property taxes go up, up, up.

As a result, some house-rich but cash-poor seniors are faced with a difficult dilemma. Should they oppose education or get ready to move out of their long-time home?

But now, just in time for the Andover vote on two new schools, state Sen. Susan Tucker says the state may have helped solved the problem.

According to Tucker, a property tax refund for senior citizens will be available beginning in 2001.

"It kicks in exactly the time the (proposed schools) tax increase in Andover kicks in. There are people who will be paying less taxes, because of this provision, even if the schools article passes," says Tucker.

Recent Massachusetts school building projects, Tucker says, "In many cases pitted the seniors against the parents. This ought to be helpful in the school debate coming up on the Town Meeting ballot."

Andover homeowners will be eligible for the refund if they are at least 65 and their total property taxes and half of their water and sewer charges exceed 10 percent of their income. They must also make no more than $40,000 per year for singles filers, $50,000 for heads of household or $60,000 for joint filers.

Seniors with homes valued at more than $400,000 also would not be eligible for the tax break.

"I was pleased that low-income wasn't just described as $20,000 and below," says Tucker. "I guess we're talking about (both) middle-class and low-income seniors.

Tucker says the state approved the tax credit within last year's budget because so many Massachusetts seniors were getting hammered by Proposition 21/2 override votes.

"The central focus was the recognition that the property tax has become the most burdensome tax to low-income seniors," she says.

In recent years, seniors concern about their income, "manifested in these fights over the school votes because they really can't afford to pay more," says Tucker. "It's not a question of them not wanting to help the kids and help the community, but they feel they are really strapped."

Tucker carefully notes residents should not call town offices about the tax break, as it is a state-funded credit.

It will begin in the 2001 tax year at $375, and increase to $750 for 2002. Eligibility and payouts will be adjusted each year to keep pace with inflation.

Tucker's office reports that about 130,000 seniors state-wide will benefit from the tax break, but the senator says she does not have estimates for how many Andover seniors can benefit from the circuit breaker.

The state program will not affect town tax exemptions such as the $500 per year senior voucher program.