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Sunday, July 5, 2015

How to Pay Less Taxes, Part 5: Veteran’s Tax Credits

Honoring our debt to our nation's veterans and their families.

By Will Collette

Introduction: How to save on Charlestown Property Taxes

Part 1: Waiver of interest

Part 2: Appealing your assessment

Part 3: Tax credits for the blind and disabled

Part 4: Farms, Forest and Open Space


In the introduction to this series, I noted that how we levy taxes is the ultimate expression of our priorities. At the end of the Fourth of July weekend, one of our most patriotic holidays, it is fitting to cover how veterans are treated when it comes to property taxes.

Also, our Charlestown property tax bills are coming out very soon and will contain the seventh straight increase in our property tax rate - a tax rate hike each and every year since the Charlestown Citizens Alliance took control of Charlestown government. 

But for veterans and other groups favored under Charlestown's tax policy, these increases are cushioned by tax breaks.

Charlestown offers veterans who were in the military during “qualified service dates” several tax credit opportunities. 


Those qualified service dates are listed in the RI General Laws section on veterans’ exemptions. The unremarried widow or widower of a qualified veteran is also eligible for these benefits.

The service dates cover the dates of this country’s military actions, large and small (e.g. ranging from World War II to the interventions in Bosnia and Haiti), or any other military action where campaign ribbons were issued including constant warfare we have been waging around the world since 9/11.

Those issued a dishonorable discharge are not eligible, though all other types of discharges and honorable service are considered acceptable.

Tax Assessor Ken Swain says that veterans start the process when they bring their discharge papers (DD214) to Town Hall. They will then be given the application form to fill out.

The standard veterans’ tax credit is $150. If the veteran is certified by the Veterans Administration as 100% disabled with a service-connected medical problem, there is an added $500 tax credit. There is an additional $500 tax credit for POWs.

State law provides for a tax exemption for Gold Star families (those that have lost a son or daughter in war) of up to $3000, but no family in Charlestown currently receives that credit.

You can qualify for more than one tax credit – they don’t cancel each other out. There is at least one Charlestown veteran who has accumulated four tax exemptions for annual tax credits totaling $1,725.

These credits can also be applied to your vehicle tax if you own no real estate and for some veterans who have no taxable real estate, it can mean no car tax either.

Here's an example. Town Council Boss Tom Gentz, who is also a member of the CCA Party's Steering Committee, has two homes near Quonnie under his wife's revocable trust. They are assessed and taxed at just under $1,2 million.

His veteran's exemption carries over to the four cars registered in his name, while the couple's other three are registered in his wife's name and are taxed $193.


In 2014 and 2015, Boss Tom Gentz paid no car tax on the four cars registered in his name which include three restored Porsche sports cars. As you can see below, Gentz received an "Assessments Credit" of $11,468.




Here is the section on the veterans’ tax breaks from Charlestown’s Ordinance database:


Veterans Exemptions (§ 192-15 — § 192-16) 




ARTICLE II 
[Adopted 6-10-1985 as Ch. 140; amended in its entirety 10-2-2004 by Ord. No. 253a]

§ 192-15 Purpose. 

The purpose of this article shall be to provide for the adjustment of the tax exemption for any veteran receiving an exemption pursuant to RIGL §44-3-24.

§ 192-16 Exemptions. 

The following property tax exemptions will be in effect upon passage of this article:
A.  For veterans (qualified service dates only): $150 as a tax dollar credit.
B.  For an unremarried widow or widower of a veteran: $150 as a tax dollar credit.
C.  For a 100% service-connected disabled veteran including the additional disabled veteran exemption: $500 as a tax dollar credit.

ARTICLE III Veteran Prisoners of Wars Tax Exemption Procedures (§ 192-17 — § 192-18) 

[Adopted 1-12-1987 as Ch. 153]

§ 192-17 Purpose. 

[Amended 8-28-1995 by Ord. No. 202; 5-13-2002 by Ord. No. 240]
The purpose of this article shall be to provide a real and personal property tax exemption of $500 as a tax dollar credit to those veterans, of the military or naval service of the United States of America, classified as prisoners of war. This exemption is in addition to other real and personal property tax exemptions of qualified veterans, pursuant to G.L. 1956 § 44-3-4.

§ 192-18 Eligibility. 

Any veteran applying for this property tax exemption shall be deemed eligible upon complying with the following:
A.  Complete and submit an application form to the Town Clerk.
[Amended 5-13-2002 by Ord. No. 240]
B.  Submit with said application documentation from the Veterans' Administration of the United States certifying that the applicant veteran has been classified as, or determined to be, a prisoner of war.
C.  Completed application must be submitted to the Town Clerk no later than January 31 of the year applying. No reapplication will be necessary, provided that residency is continuous.
[Amended 5-13-2002 by Ord. No. 240]

ARTICLE VI Additional Exemption for Disabled Veterans (§ 192-31 — § 192-32) 

[Adopted 1-11-1988 as Ch. 162]

§ 192-31 Purpose. 

[Amended 8-28-1995 by Ord. No. 202; 5-13-2002 by Ord. No. 243]
The purpose of this article shall be to provide a real and personal property tax exemption of $500 as a tax dollar credit to those veterans of the military or naval service of the United States of America classified as 100% disabled. This exemption is in addition to other real and personal property tax exemptions of qualified veterans, pursuant to G.L. § 43-3-4.

§ 192-32 Eligibility. 

Any veteran applying for this property tax exemption shall be deemed eligible upon complying with the following:
A.  An application form shall be completed and submitted to the Town Tax Assessor.
B.  Documentation from the Veterans Administration of the United States, certifying that the applicant veteran has been classified as 100% disabled, shall be submitted with said application.
C.  The completed application must be submitted to the Town Tax Assessor no later than January 31.