Increased Tax Relief for Seniors Set for Vote Wednesday Night

Most senior citizens on the town's tax relief program may see a $100 increase in their tax credits in 2011-12 under a recommended change to the program to be voted on Wednesday night by a town committee.

The $100 increase, as currently proposed, would apply to all but three groups on the tax relief program's credit option - married seniors and single seniors in a household with annual income from $44,001 to $60,900 wouldn't receive the $100 increase, nor would single seniors in a household with annual income of $37,701 to $44,000.

David M. Becker, a member of the Representative Town Meeting's Senior Tax Relief Committee, said increasing tax credits by $100 for all other groups seemed viable and likely would be voted on at Wednesday night's committee meeting. The meeting is at 7:30 p.m. in the basement of Sullivan-Independence Hall.

"It has come up at every single meeting when we go through the list. It hasn't been put aside by anybody," Becker, R-1, said.

Alexis Harrison, a committee member and RTM member from District 2, said increasing the credit was likely, but added that all options are on the table.

Married and single seniors in households with annual income from $44,001 to $60,900 now receive an $800 tax credit, and Becker said increasing that by $100 was viewed by some committee members as too high a percentage increase compared to the percentage increase of lower-income groups. Single seniors with annual income of $37,701 to $44,000 now receive a tax credit of $1,100.

Becker said another change likely to be voted on Wednesday night was no longer counting Social Security income of a spouse who is in a nursing home toward income-eligibility limits for the town's tax relief program. That income, which often is paid directly to the nursing home, doesn't help the senior who is still living in the home, Becker said.

The effect of the upcoming townwide revaluation on the tax freeze option - which enables seniors with household income not exceeding $49,600 to have their taxes frozen for five years - also likely will be the subject of a vote Wednesday night, Becker said.

Many seniors' property assessments may drop in the townwide revaluation, which could cause their property taxes to drop as well. But if they're on the tax freeze option, they theoretically would have to pay taxes at the pre-revaluation level, Becker said. That dilemma could be addressed by simply adding language that says a senior would pay the lower of the tax freeze or post-revaluation tax bill, but the committee wants to find a way for the five-year limit to be extended so seniors don't have to leave the tax freeze option after their taxes have gone back up to the freeze level, Becker added.

Becker said he didn't believe the committee would eliminate any of the tax program's options.

In addition to the tax credit and tax freeze options, the program also offers a tax deferral option for seniors whose annual income doesn't exceed $77,800. The tax deferral option freezes taxes at their current level, but, unlike the tax freeze option, the tax increases have to be paid back to the town when the senior's house is sold. The tax deferral option isn't popular with seniors because it requires a lien on their property.

Becker said he also didn't envision the committee raising income eligibility limits for the program because more seniors are participating in the program this year than last year.

Becker said he wasn't in favor of setting a limit on property assessments for seniors to participate in the tax relief program. According to a report by Town Assessor Thomas F. Browne Jr., 40 households on the program in the current fiscal year have assessments from $600,000 to $997,500, while seven have assessments that are more than $1 million.

"I personally think this program is about keeping people, not just in town, but in their home. If that's your home and you qualify, I want you to be able to stay there," Becker said.

Becker said it didn't make sense to force seniors to sell homes that are assessed at higher amounts and then expect them to buy a home in Fairfield that is assessed at a lower amount. Those seniors more likely would just move out of town, Becker said.

The current tax relief program costs the town about $3.3 million a year, and Becker said the RTM Senior Tax Relief Committee has to strike a balance between helping seniors and not impacting the town budget too much. "If we increase the credit...significantly, that will affect the mill rate. That will affect the taxes so we have to strike the right balance," he said.

Any changes approved Wednesday night would require approval from the full RTM before they took effect. The RTM has to vote on any potential changes to the senior tax relief program by the end of the year so Browne's office has time to incorporate the changes into the program before applications are available next spring. The changes would take effect in the 2011-12 fiscal year, which begins July 1.

Becker said the RTM Senior Tax Relief Committee takes public comment at all of its meetings and would take comments from the public Wednesday night. "We wish more people showed up, frankly," he said.