Tax Relief Plan Offered Again This Year

By Steve Bigham

Newtown senior citizens will once again be eligible for tax savings under the town’s Elderly Tax Relief plan.

Last year, the town passed an ordinance that enabled certain seniors to save as much as $1,000 on their local tax bills. This year, that figure has been increased to $1,075.

This year’s plan calls for a cap of $401,237 (up from $365,000 last year) in revenue loss to the town. To be eligible under the plan, a taxpayer must be 65 or over, have lived in Newtown for at least one year, and live in the home for at least 183 days out of the year. Those with household income levels between $0 and $35,000 will receive a $1,075 tax credit, while those earning between $35,000 and $55,000 will receive a $636 tax credit.

By raising the amount of money set aside, the council is hoping the town will have enough money to cover all those who qualify. However, the tax savings plan is no longer provided on a first-come first-served basis. Earlier this month, the Legislative Council revised the method to address the scenario where more applications than there is available money come in. In that case, each applicant’s benefit within each income level will be evenly reduced as necessary in an effort to provide equal relief to all those who fit within that income level.

The program was created by the Legislative Council last June (just before tax bills went out) and nearly 400 elderly residents applied.

 “Because of the tremendous response last year, the council has appropriated additional money this year,” explained Tax Collector Carol Mahoney. “We want to be able to help everybody that comes in that would be eligible to benefit from this.”

Seniors can apply for the program in the tax collector’s office at Edmond Town Hall between March 1 and May 15.

Last spring, Mrs Mahoney urged town officials to pass the elderly tax relief program, pointing out that many elderly residents on fixed incomes are treading water as the town’s budget continues to rise. Many of them are longtime Newtown residents who are being forced to move out of town. Some are forced to borrow money or use parts of their home equity loans in order to pay their taxes.

The taxpayers of Newtown pay 60-70 percent of municipal spending each year. Much of that money used to come from the state, especially education funds. Town officials opted to implement this plan a year ago in an effort to keep Newtown’s elderly in town. A senior citizen requires fewer services than a family with young children.

The tax relief program requires residents to claim all of their income, including tax exempt money.