Known commonly as the "circuit breaker" law, it provides relief not only to eligible members who are homeowners, but also to those who rent without any public subsidy.

According to Legislative Chairman Bill Hill, "Over the years, circuit breaker legislation, as a means for the state to provide property tax relief, has been advanced by several leaders in the State House, including Senate President Tom Birmingham. Under this law, relief will break-in once an individual's property taxes exceed a certain portion of his income."

To be eligible, members, 65 or over, must not be a dependent, and their incomes must also be below certain thresholds - $40,000 for individuals and $60,000 for couples filing jointly. It's important to note that an individual's (or couple's) income, under this special law, includes pension and social security benefits even though these benefits are exempt (and continue to be so) from state income taxes.

To calculate the credit or refund that you will receive, members must determine how much their property taxes, actually paid in 2000, exceed 10% of their 2000 income. For members who lease, they will use 25% of their rent as being property taxes (i.e., 25% of $6,000 in annual rent equals $1,500 in property taxes).

"If a member's income last year was $12,000 and the property taxes he paid or 25% of his rent amounted to $1,500, then he could receive a $300 credit or refund ($1,500 - $1,200) under the circuit breaker," explains Hill. "Again the maximum amount for this year is $375, but for next year (2002) it doubles to $750."

Members, who normally do not file a state income tax return, will have to file one this year in order to take advantage of the law. It's estimated that some 130,000 homeowners and renters, 65 or over, will receive either the credit or cash refund.

You can obtain a credit or refund under the state's circuit breaker and still be entitled to a property tax abatement offered at the local level. Also, the credit or refund is not included as income for purposes of other programs, like energy assistance.