Mayor Domenic J. Sarno, Chief Administrative and Financial Officer (CAFO) Cathy Buono, Board of Assessors Chairman Patrick Greenhalgh, and City Solicitor Stephen Buoniconti joined with City Council President Attorney Michael Fenton and Councilors Tim Allen, Chair of the Council Finance committee, and Victor Davila, Chair of the Council Pilot New Revenue special committee, to announce a targeted tax relief initiative for eligible residents.
Per Massachusetts General Law (M.G.L.) Chapter 60, Section 3D, Mayor Sarno will sponsor a special Taxation Aid Committee and Fund for local acceptance before the City Council. Under M.G.L. Chapter 60, Section 3D, this local option would assist eligible low-income homeowners that are either elderly and/or disabled. The fund, which is entirely supported by voluntary donations, would provide targeted tax relief for homeowners that potentially do not qualify under the current tax relief exemptions; disabled veterans, legally blind, surviving spouse/over 70 years of age (with maximum asset restrictions), age of 65 years (with maximum income and assets restrictions), and the Massachusetts Senior Circuit Tax Credit.
If this local option is adopted, it would create a special Targeted Tax Relief Committee, which per state statute, would comprise of five (5) members: Chair of the Board of Assessors, Treasurer, and three (3) residents appointed by the mayor. Mayor Sarno will ask for City Council President Fenton, or his designee, to serve as one of the residential appointees. The Committee will meet to determine and establish the eligibility requirements and designations for elderly and disabled, along with the tax relief offset amount.
Mayor Sarno states, “As my administration continues to provide much-needed tax relief for our residents, and in response to the City Council asking for a more targeted tax relief mechanism for residents that may not qualify for the various tax exemptions that are already in place, I am pleased to put forth this local targeted tax relief option before the City Council. I want to thank Council President Attorney Michael Fenton and Finance Chair Tim Allen for their efforts working with my administration to make this targeted approach happen. I also want to thank CAFO Cathy Buono, City Solicitor Steve Buoniconti, and Chair of the Board of Assessors Patrick Greenhalgh for their efforts in reviewing this state statute and putting it forward for the City Council to adopt this local option. Other communities in the Commonwealth have successfully adopted this and Springfield is looking forward to providing yet another means to offer tax relief for those eligible homeowners in need.”
CAFO Buono said, “In response to the City Council’s request for an instrument that would provide targeted tax relief, especially to those homeowners that may not qualify for any of the existing tax exemptions, Mayor Sarno instructed myself and Board of Assessors Chair Patrick Greenhalgh to review this state statute and the adoption of the local option. I am pleased to announce that this local option for targeted tax relief addresses this concern and once the committee is established, they will establish the eligibility requirements for elderly and disabled along with the tax relief offset amount.”
Board of Assessors Chair Greenhalgh stated, “On behalf of the Board of Assessors, I am proud to join this announcement that the City of Springfield will be offering expanded and targeted tax relief options to our homeowners through the acceptance of this statute. This initiative will provide additional real estate tax support to our qualifying homeowners.”
Council President Fenton added, “This Special Taxation Aid package is welcomed news for taxpayers in need. I am happy to support it and look forward to working with the Mayor and the City Council on implementing the Committee to oversee this taxpayer relief fund.”
Finance Committee Chair, Councilor Allen stated, “All of us want paying taxes to be as painless as possible. For a few years, we have dedicated some city money toward tax relief. This creative new idea will hopefully offer a new way for the city to continue to offer some tax relief.”
This targeted tax relief option will be available for eligible taxpayers in FY26, along with the new HEROS act and all existing tax relief programs.
“My administration will continue to provide tax relief for all residents and businesses by continuing to utilize the interest from our investment in the T-Bonds along with a certain amount from our certified free cash. Although I cannot maintain the over $19 million, I had dedicated over the past 2 years in tax relief – which artificially reduces the tax levy, it’s just not sustainable or financially prudent for the city’s fiscal health. I believe this is a caring and compassionate way to continue to provide tax relief while also being mindful of our credit and bond rating, and debt services, while also maintaining key and vital core city services for our neighborhoods,” added Mayor Sarno.
If the targeted tax relief is approved by the City Council, Mayor Sarno would then file a home rule petition for the City Council to also approve that would be filed with the state delegation. The home rule petition would help supplement the targeted tax relief fund with a one-time payment of $1 million from the city’s certified free cash account. This one-time payment would seed this new targeted tax relief fund for eligible residents. Going forward, the City Council’s special Pilot Committee on New Revenue, chaired by Ward 6 City Councilor Victor Davila, which focuses on outreach to nonprofit entities to voluntarily contribute more in payments in lieu of taxes, will play an integral role in helping to sustain this targeted tax relief initiative. A portion of any payment in lieu of taxes received from nonprofit entities would go directly into this special targeted tax relief initiative for eligible residents.
Mayor Sarno states, “I want to thank and applaud Council Victor Davila for his efforts exploring what options are available under this City Council special committee on new revenue, especially payments in lieu of taxes from nonprofits. We believe that this collaboration would be a good fit and would provide a dedicated initiative where nonprofits could see their payments in lieu of taxes go directly to individuals in need as part of this targeted tax relief initiative.”
Councilor Davila, Chair of the Pilot New Revenue Committee stated, “This targeted tax relief program allows for the community to join and help the low-income homeowner, especially the elderly who have felt the economic impact on this challenging economy. I am pleased to join the Mayor and co-sponsor this initiative. “
Mayor Sarno said, “I am proud of my administration’s efforts in providing much-needed tax relief for our residents. Between this targeted tax relief initiative, the recently announced tax relief for our Veterans as part of the local option of the HERO Act that was announced with City Councilor Kateri Walsh and Veterans Affairs Director Joe DeCaro, and all of the existing tax relief programs, there are now multiple means for homeowners to seek tax relief.”