1/20/2011 SEWER COMMISSION Minutes

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6 Division of Local -25- CITY&Town January 1995 DLS ' UPDATE Senior Payment of the deferred charges is se- rate lien statement to secure payment of cured by the same lien statement the deferred assessment is also recorded Citizen recorded by the assessors under CI.41A; and interest on the deferred assessment no additional or separate statement is accrues at the same betterment and Deferrals executed or recorded. The deferred special assessment rate that applies to Local officials from a community that is charges are added to the C1.41A tax assessments for the project generally.As constructing a new sewer system recently deferral account established by the with the user charge deferral, however, asked the Division about the ad- collector in the first year the tax deferral no limit is placed on the amount that may ministration of two local option statutes, was granted, User charges in subsequent be deferred. M.G.L. Ch.80 Sec.13B and Ch,83 years are certified to the assessors by the Sec,16G. If accepted, these two statutes water and sewer commissioners and There are also some differences between will permit low income senior citizens to deferred in the same manner so long as the collection procedures that apply to defer payment of betterments and other the ratepayer continues to qualify for a tax deferred user charges and deferred special assessments and sewer user deferral. Deferred charges accrue interest betterments and special assessments. charges. Specifically, the officials were at the same rate of 8% per year as Because the CI.41A tax deferral account interested in knowing how the local option deferred taxes and are due and payable into which deferred user charges are deferrals for sewer user charges(or water at the same time as those taxes, i.e., added is treated as a tax title, the user charges under M.G.L. Ch.40 upon the sale of the property or the treasurer becomes responsible for Sec.42J) and for betterments and special taxpayer's death, unless the surviving collecting all user charges added to the assessments operate in relation to the spouse qualifies and enters into a new tax account, as well as the deferred taxes, property tax deferral provided by M.G.L. deferral agreement. However, unlike and the usual tax title interest rate of 16% Ch.59 Sec.5 CI.41A, The property tax CIAIIA, there is no limit on the total applies to the charges after they become deferral was discussed in detail in the amount of user charges that may be due and payable upon the sale of the November 1994 edition of City & Town deferred. In addition, the deferred user property or the taxpayer's death. If the (Vol.7 No, 11). charges added to the tax deferral account deferral account is not paid in full when are not considered when determining due, the treasurer can proceed with The local option user water and sewer whether the C1.41A tax deferral cap, foreclosure proceedings in the Land charge deferrals are both administered in which is 50%of the taxpayer share of the Court six months after the property sale conjunction with the CI.41A property tax full and fair cash value of the property, or taxpayer's death. A deferred deferral. Eligibility to defer user charges has been reached. assessment account, however, does not is limited to those senior citizens who have tax title status, Therefore, if the qualify for and are actually receiving a tax The local option betterment and special deferred assessment is not paid after it deferral. In the first year a deferral of user assessment deferral, on the other hand, becomes due and payable, it would first charges is sought, the ratepayer would is administered separately from the have to be added to the next tax as- apply to the water or sewer C1.41A property tax deferral. Senior sessed on the property, along with the commissioners within the same time limit citizens do not have to be recipients of accrued interest, so that the collector as for applying for tax deferral, i.e., by tax deferrals in order to defer a better- could make a tax taking, or certify the December 15, or three months after the ment or special assessment, but they amount to an existing tax title account. property tax bills are mailed, whichever must satisfy the same criteria as to age, The treasurer could then proceed with the is later. If the ratepayer qualifies, the ownership,domicile, residency and gross usual foreclosure process. water or sewer commissioners notify the receipts. Moreover, even if they are assessors of the amount of user charges receiving C1,41A tax deferrals, they must The Commissioner of Revenue has not to be deferred for the year. The enter into separate agreements with the prescribed separate forms for use in the assessors add those charges to and board that assessed the betterment or administration of the user charge or commit them as part of the annual special assessment for its deferral and betterment and special assessment property tax on the property, and defer recovery.A sepa- them along with the tax. continued on pane eiaht