PEABODY — The city has provided guidance to residents regarding abatement application and tax-exemption processes.
Abatement applications must be received by the Assessors’ Office no later than 4 p.m. on Feb. 1. An abatement is the method allowed under state law for residents to dispute property assessments or to correct any other billing problems or errors.
Failure to pay the tax assessed when due may result in interest charges to the taxpayer. If an abatement is granted and the taxpayer has paid the tax in full, a refund will be issued.
Failure to file a timely application results in forfeiture of all rights to obtain a fiscal year 2022 abatement. Assessors cannot grant abatements by law after the deadline.
Tax exemption applications must be filed annually and received by the Assessors’ Office no later than April 1. A tax exemption is a discharge from the obligation to pay all or a portion of real-estate taxes. Exemptions are available for qualifying veterans, legally blind people, surviving spouses and seniors as follows (according to the city’s website):
Persons over 70, surviving spouses or minors with limited assets:
Applicants must be (1) a widow or widower of any age, or (2) over 70, or (3) a qualified minor who has a deceased parent and have assets that do not exceed $58,081.
Assets include, but are not limited to, savings-account balances, checking-account balances, stocks, bonds, CDs, and annuities as of July 1, 2021.
Applicants over 70 must have owned and occupied the property as their domicile for not less than five years. Qualified applicants are entitled to between $175 and $297.50 off of their taxes.
Qualifying Veterans, their spouses and parents:
Applicants must have a (1) service-connected disability of 10 percent or more, or (2) been awarded the Purple Heart, or (3) have served in the Spanish War, Philippine Insurrection or the Chinese Relief Expedition, or (4) fathers and mothers of soldiers or sailors who died in wartime service, or (5) spouses of qualifying veterans for as long as they remain unmarried.
Applicants must have lived in Massachusetts for at least six months prior to entering the service or have resided in the Commonwealth for the five years prior to the date of filing for the exemption. Qualified applicants are entitled to an exemption between $400 and $680 total tax exemption depending on their qualifications.
Legally Blind:
Applicants must be legally blind as of July 1, 2021 with annual certification from the Commission of the Blind. Qualified applicants are entitled to between $500 and $850 off of their taxes.
Persons over 65 with limited income:
Applicants must be over 65 years of age as of July 1, 2021 and have an income that does not exceed $42,270. Income includes, but is not limited to, social security, pensions, retirement, interest and dividends, wages, salaries and tips.
This exemption provides for the provision for the deferral of real-estate taxes during the life of the owner until the property is sold and at that time the taxes and 8 percent interest must be paid back to the city. Qualified applicants are entitled to determine the amount that they wish to defer annually.
Persons over 65 with limited income and limited assets:
Applicants must have been continuously domiciled in Massachusetts for the 10 years preceding the application, and have owned and occupied the property or other property in Massachusetts for five years. Applicants must be 65 years or older as of July 1, 2021. Gross receipts (income) must be less than $23,955 if single and $29,341 if married, including social security. Income includes, but is not limited to, social security, pensions, retirement, interest and dividends, wages, salaries and tips. Whole estate (assets) must be less than $40,657 if single and $43,561 if married. Assets include, but are not limited to, savings account balances, checking account balances, stocks, bonds, CDs, stocks, and annuities as of July 1, 2021. Qualified applicants are entitled to between $500 and $850 off their taxes.
Property tax deferral is an additional option to defer payment of property taxes until the property is sold. To be eligible, residents must satisfy requirements relating to age, ownership and domicile, annual income and/or whole estate or assets. Applicants must own and occupy the property as their domicile as of July 1, 2021.
Please contact the Peabody Assessors Office at 978-538-5716 for more information. Abatement and exemption procedures and forms can also be accessed on the city’s Assessors’ Office website, www.peabody-ma.gov/assessor.html.
