Rep. Ciccolo renews bid to pause high interest on deferred property taxes after the death of veterans and seniors

Representative Michelle Ciccolo testified in support of H 3051, an act she filed to change how interest accrues on property tax deferrals when a deferral user dies.

Ciccolo said Massachusetts law lets communities offer qualified seniors and veterans a property tax deferral program that caps interest on deferred taxes at 8%. Under current law she described, when a deferral user dies the interest rate on the deferred balance immediately can rise to 16%, creating a large cost for heirs settling an estate. “When seniors choose to defer their taxes, the community can set an interest rate on the repayment of those tax property tax bills, which is capped at 8%. However, after they pass, the interest rate immediately shoots up to 16%,” Ciccolo said.

Her bill would not forgive the deferred taxes; it would allow a one‑year deferral of the higher post‑death interest rate to give heirs time to settle the estate. Ciccolo said the goal is to prevent the high post‑death interest from deterring seniors and veterans from using a program intended to help them stay in their homes.

She also noted the legislature created a commission last session to review deferral programs more broadly (H 4791) and suggested any broader commission examine the post‑death interest treatment as part of a comprehensive review. Ciccolo said she would file written testimony and urged the committee to consider the limited change as a way to protect families managing estates.

No committee vote was recorded at the hearing on H 3051.