By Bob Katzen

The House gave initial approval to a bill which would lower the current flat 16 percent interest rate on property taxes that are deferred under the Senior Citizen Property Tax Deferral Program, which defers payment until the senior sells the property or passes away.

The bill would lower the rate to the prime rate plus 2 percent. The current prime rate is 8.5 percent which would result in a 10.5 percent interest rate.

“This legislation establishes more reasonable interest rates on the property taxes deferred under the senior citizen property tax deferral program, enabling more senior citizens to take advantage of the program and freeing up money for important items such as medication, housing expenses and health care,” said sponsor Rep. Alice Peisch (D-Wellesley).