Press Release: 2/13/2026
Senate passes series of local-option property tax adjustment bills
On Jan. 15, the Senate passed legislation that would allow municipalities, at local option, to establish a means-tested residential property tax exemption for certain senior citizen homeowners.
Under the terms of the bill (S. 2902), a property owner would need to meet certain age, income and residency requirements in order to qualify. Municipalities would be able to set asset limits and the annual exemption amount, capped at 200% of the maximum senior circuit breaker state income tax credit for the previous year.
The bill is a redrafted version of S. 2036, which was adopted as part of the MMA’s Legislative Package for the current legislative session. A similar proposal is also found in the governor’s proposed Municipal Empowerment Act, which is expected to be reported out of legislative committees soon.
The Senate also passed the following tax-relief related bills:
• S. 2915 would allow municipalities, at local option, to issue uniform property tax rebates to qualified homeowners who received a residential exemption in the prior fiscal year. Qualifications would be asset and income thresholds set by the municipality. The bill also would allow an increase in the maximum local personal property exemption to $30,000, and allow municipalities to adjust senior property tax exemption by lowering the minimum age to 65, increasing the exemption to $1,500, and raising income limits, at local option.
• S. 2917 would authorize municipalities to adopt property tax credits for homeowners in any fiscal year when residential property tax levy growth, excluding new growth, is or is likely to exceed 10%. The bill would allow municipalities to set qualifications for recipients based on senior status, MassHealth enrollment, unemployment, and/or young family criteria. Communities would also be able to set income and wealth parameters.
• S. 2914 would allow municipalities to reduce the interest rate for a year after a homeowner has died, protect against foreclosure for a year and a half, adjust the income level of surviving spouses, and reduce the residency requirement from 10 to seven years.
• S. 1948 would modify existing property tax law related to veterans by increasing the maximum amount of property tax reduction that veterans can receive in exchange for volunteer services, from $1,500 to $2,000.
The bills now move to the House for consideration.