The bill amends Chapter 44-5 of the General Laws by introducing a new section, 44-5-20.13.2, which establishes a statewide deferment of property tax payments for qualified senior citizens, disabled citizens, and disabled veterans. Under this provision, city or town councils may, by ordinance, allow these individuals to defer property tax payments on their single-family dwellings, including manufactured homes, until the property is disposed of due to the death of all qualified owners or through transfer or conveyance. Deferred taxes will create a lien on the property, and interest at a rate of six percent annually will accrue during the deferral period.

The bill provides specific definitions for senior citizens (residents aged sixty-two or older), disabled citizens (those determined to be totally disabled by the United States Social Security Administration), and disabled veterans (veterans determined to be totally disabled by the United States Veterans Administration). It also sets eligibility criteria for the deferment, stating that single-family dwellings with reverse mortgages or less than twenty percent equity are not eligible.

City or town councils are required to establish the requirements and application or verification procedures for taxpayers to access the deferment benefit. If a tax assessor determines that a deferral was granted based on a claim filed in bad faith, the owner will be assessed a delinquency penalty for the nonpayment of the deferred taxes. Additionally, if a city or town adopts an ordinance in accordance with this section, the tax collector must certify the total amount of property tax deferral claims to the director of finance by January 31 each year. The bill explicitly states that it does not apply to property taxes paid through escrow accounts and will take effect upon passage.