Council Tables Discussion On

Tax Abatements For Seniors

By Steve Bigham

Newtown’s senior citizens want to know: will there be a tax abatement plan for seniors in place by the time tax bills go out this year? In other words, will they get a tax break to help them pay the significant increase in property taxes in this year’s budget?

For Legislative Council Chairman Pierre Rochman, it is still too early to tell. However, he admits he is not inclined to rush the issue. The council has not even decided on the merits of tax abatement yet, he said. If approved, an elderly tax incentive plan would increase the already-inflated tax rate proposed for the coming year.

However, some town officials believe there will be an increase in savings for seniors before the tax bills are sent out in July.

Last week, the council voted to table any further discussion on this confusing, if not controversial, issue. The Board of Selectmen recently passed two different elderly tax relief proposals on to the Legislative Council for consideration. The first, proposed by a town employee and a selectman, was endorsed by the board. The second was passed on to the council in deference to members of the ad hoc Elderly Tax Relief Committee. The ad hoc Elderly Tax Relief Committee has been working on a tax savings plan for senior citizens since last spring. Its proposed program provides savings to all Newtown seniors – no matter what their income level is. Seniors are far less expensive citizens than families with school-age children, committee members say.

But Tax Collector Carol Mahoney, Tax Assessor Denise Hames, and Selectman Joe Bojnowski felt a tax break for all senior citizens was too excessive. It would cost the town far too much money and offers tax relief even to those who may not need it, they said. The Elderly Tax Relief Committee’s plan would provide an average of $1,674 worth of tax relief for each of the estimated 2,000 Newtown residents over age 65. That works out to $3.3 million in lost revenue to the town. It’s an aggressive plan, which does not appear to have much support.

The Bojnowski-Mahoney plan provides more relief than what the elderly currently receive, but far less than what the committee has offered. Their plan uses a “needs assessment profile” to determine which seniors would get a tax break. Under the test, those seniors with a combined income of $35,000 or less would receive a $1,000 tax break. Those with a combined income of between $35,000 and $50,000 would receive a tax break of $600. Those with a combined income of over $50,000 would not be eligible for any tax relief.

Mr Bojnowski said 100 percent participation in the compromise plan would cost the town an estimated $231,000. Seventy percent participation would run the town about $150,000.

 Will Rodgers serves as chairman of the council’s ordinance committee and was also a member of the ad hoc Elderly Tax Relief Committee. He admits that a $1,674 tax relief plan may be too costly. However, he does feel that all Newtown seniors should receive some abatement. He noted that most senior citizen discounts are not based on wealth. The idea is to encourage senior citizens to stay in town, as well as to assist seniors on fixed incomes.

Mr Rodgers said he would support a tax relief plan somewhere in the middle of the two proposed plans.