Massachusetts General Laws (Tax)
Mass. Gen. Laws ch. 59, § 5O
Property tax exemption for real property classified as Class One, residential in the city or town; qualifications; municipal ordinances
[Text of section effective for tax years beginning on or after January 1, 2023. See 2023, 50, Sec. 49.] Section 5O.
# (a)
In any city or town that accepts this section, the board of selectmen or select board of the town, the town council of a municipality having a town council form of government, the city manager, with the approval of the city council, in the case of a city with a plan D or plan E form of government, or the mayor, with the approval of the city council, in all other cities, may establish a property tax exemption for real property classified as Class One, residential in the city or town. To qualify for the exemption, the property shall be: (i) rented at an affordable housing rate, as determined by the city or town and in accordance with the United States Department of Housing and Urban Development guidance and regulations; (ii) rented on a yearly basis; and (iii) occupied year-round by a person or persons whose household income does not exceed an amount to be set by the city or town; provided, however, that said income shall not be more than 200 per cent of the area median income. The property tax exemption shall be for an amount determined by the city or town; provided, however, that the amount shall not be more than the tax otherwise due on the parcel based on the full and fair assessed value multiplied by the square footage of the housing units rented and occupied by a person or persons whose household income is not more than the income limit set pursuant to clause (iii), divided by the total square footage of a structure located on the parcel. Assessment of property seeking an exemption under this section, if by an income approach to value, shall assume fair market rent for all units. The property owner seeking the exemption shall submit to the city or town any documentation the city or town deems necessary, including, but not limited to, a signed lease and proof of the occupying person or persons' household income, to confirm the eligibility of the property for the exemption under this section.
# (b)
A municipality may adopt ordinances or by-laws to implement this section.
Source: view the official text
In this chapter (40 sections)
- 59-3E · Real estate owned by the United States and leased to private…
- 59-3F · Child care facilities; classification as property used for…
- 59-4 · Property taxable as personal estate
- 59-5 · Property; exemptions
- 59-5A · Repealed, 1965, 620, Sec. 3
- 59-5B · Appeals; eligibility for exemption under Sec. 5, third clause;…
- 59-5C · Exemptions for residential real property in cities or towns…
- 59-5C1-2 · Additional exemption allowed notwithstanding prohibition of…
- 59-5C3-4 · Residential exemption
- 59-5D · Property held by city, town or district in another city or town…
- 59-5E · Valuation of land held by city or town in another city or town;…
- 59-5F · Holding municipalities or districts; tax liability for lands…
- 59-5G · Payment to cities or towns for property held for water supply…
- 59-5H · Payments to municipalities for certain watershed land;…
- 59-5I · Exemption; conditions
- 59-5J · Special assessment policy; historic owner-occupied residences
- 59-5K · Property tax liability reduced in exchange for volunteer…
- 59-5L · Deferral of taxes due by member of the Massachusetts National…
- 59-5M · Exemption for market rate units contained in a certified…
- 59-5N · Reduction of property tax obligation of veteran in exchange for…
- 59-5O · Property tax exemption for real property classified as Class…
- 59-6-to-7A · Repealed, 1978, 580, Sec. 30
- 59-8 · Interstate, foreign trade or fishing ships or vessels;…
- 59-8A · Excise tax on farm machinery and equipment and farm animals;…
- 59-9-10 · Repealed, 1963, 160, Sec. 12
- 59-11 · Real estate
- 59-12 · Mortgaged real estate
- 59-12A · Statement of estate liable to taxation
- 59-12B · Mortgagors and mortgagees deemed joint owners; tax bill
- 59-12C · Taxes paid by tenant; recovery from landlord
- 59-12D · Assessment against real estate of decedent; liability of heirs…
- 59-12E · Assessment against real estate of decedent; lien
- 59-12F · Real estate unassessed where right or titled unascertained;…
- 59-13-to-17A · Repealed, 1978, 580, Sec. 30
- 59-18 · Personal property; assessment
- 59-19 · Mortgaged or pledged personal property; assessment
- 59-20 · State treasurer; duties
- 59-20A · Increase in assessments
- 59-20B · Regional veterans' districts, regional water districts or…
- 59-21 · Assessors; duties