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Council To Review Elderly, Disabled Tax Relief; Seniors Offer Suggestions

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Resident Steve Rosenblatt told the Legislative Council Wednesday evening that he believes lowering property taxes for all local seniors will help the town in the long run as the proportion of aging homeowners continues to grow.

Karen Banks thinks local officials should look at programs in other states, suggesting Newtown freeze property taxes for every resident over 65 who has maintained a primary residence in town for at least 20 years.

“I have several neighbors in that category who are considering moving,” Ms Banks told the council during its January 6 meeting. “Some of these people have lived here almost their entire lives.”

These were ideas put forth ahead of a unanimous vote to send the town’s Elderly/Disabled Tax Credit Relief program to the council’s Ordinance Committee for review.

The reexamination of a program granting between $800 and $2,525 in tax relief to more than 700 qualifying property owners last year could produce suggestions on how to expand the benefit to either more applicants, adjust the distribution structure based on who is using the program, or possibly increase the amount put aside each year to fund the benefit.

According to Finance Director Robert Tait, the number of residents applying and qualifying for the benefit increased from 694 in 2014, to 725 this year, and there are already 50 people on a waiting list poised to register when the 2016 application period opens March 2.

He told the council that those 50 represent property owners who turned 65 and became qualified to apply since the current year’s application process closed last spring.

The finance director also reported that the number of residents qualifying for the newest tier of benefits — $800 for those in the $65,001 to $70,000 annual income group increased just over 60 percent in its second year of availability — rose from 23 to 37 residents.

That was by far the largest single income group increase in benefits this year, followed by a 30 percent increase for those residents who turn 65, who are only partial owners of the property where they reside, or who have met a 25 percent minimum tax requirement.

On the other hand, Mr Tait reported that the number of qualifying taxpayers who applied from the $55,001 to $65,000 income range dropped slightly, from 126 to 124.

While the pool from which benefits are distributed remained at $1.65 million over the past two fiscal cycles, the amount of surplus sent forward to offset taxpayer contributions to the fund between 2014 and 2015 shrank by about one-third.

Ordinance Committee Chairman Ryan Knapp expressed concern over that, saying it means benefits are being left on the table for residents who may already qualify and really need the assistance, but who have not come forward.

“I see the $170,000 surplus and I fear we are not reaching people who may need [the benefit] most,” he said.

He suspects that part of the reason is a lack of knowledge about the program, despite the fact that reminders were distributed to every residential taxpayer in their 2014 and 2015 tax bills.

Mr Knapp is also concerned that residents who may be most challenged, simply do not apply because of the number of verifications required on the application.

“They have to complete 19 lines of information,” he said, ticking off a number of the fields applicants must complete. “This might be a deterrent to those who might most need [the benefit].”

Councilman George Ferguson asked to see data revealing how much local tax revenue is still generated by those receiving benefits. Mr Tait responded promising to provide that figure, reminding the council that the average applicant received a 40 percent discount on their property tax bill.

He said approximately 20 percent of local seniors or others qualified under the program received some benefit this year. This prompted Council Chair Mary Ann Jacob and First Selectman Pat Llodra to voice some frustration because there is currently no way to effectively track incomes among the local senior population, which currently represents more than 30 percent of town taxpayers.

“Because we don’t keep track of incomes, it’s challenging to determine how many people might be in each income group,” Ms Jacob said.

“As those demographics change, more people will qualify just because of their age,” Mrs Llodra said. “We really need to watch this carefully until we get a handle on that demographic shift.”

Officials are concerned if the ratio of qualifying applicants across the board, or in any one category, exceeds the annual amount set aside for benefits. In that case the amount of each benefit is reduced proportionately starting at the highest income level and reserving the largest allocation for those in the $0 to $45,000 income bracket.

Mr Knapp noted that this category represents the largest number of qualifying applicants — 353 this year. He said by continuing to promote the program, and reserving the possibility of increasing the overall benefit allocation, could encourage more seniors to remain in town after their children have taken advantage of the “excellent local school system.”

Mr Ferguson echoed that point.

“This program is allowing a portion of our residents to be able to stay here and age in place instead of putting their homes on the market,” he said.

Mrs Llodra said her office will keep a close eye on the application rate during the March 2 to May 15 application period, and might ask to increase the pool of benefit funds if it appears the 2017 allocation will fall short of providing the maximum benefit to every qualified applicant.

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