One of the good things about getting older
By Will Collette
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
Part 5: Veteran’s Tax Credits
There were 485 Charlestown taxpayers on the last tally I received from our Tax Assessor still receiving this benefit. They will continue to do so until they (a) die, (b) move out of Charlestown or (c) no longer live in the home covered by this benefit.
The old, blanket senior citizen tax exemption has been replaced by one that is severely restricted to those with very low incomes. This new tax exemption is so restrictive that, according to Geoffrey Marchant of the Washington County Community Development Corporation, only 25 Charlestown households qualify. There may be more people who are eligible but don't know this tax break exists.
The latest Social Security statistics show the average monthly Social Security benefit for an elderly retiree is $1,265 or $15,184 a year. The maximum Social Security payment is $2,663 or $31,956.
But all income must be counted on the application form to qualify for this benefit. So you must add any pension payments, income on investments, retirement account distributions, part-time work, lottery tickets, rent, help from family members, bingo winnings, proceeds from cans and bottles cashed in in Connecticut, etc.
This is the next in my series of articles on how you can save money on your Charlestown property taxes.
Soon, you will be getting your new property tax bills that will almost certainly contain a substantial increase, thanks to the Charlestown Citizens Alliance, whose wholly-owned subsidiary, the Charlestown Town Council passed the seventh straight annual tax rate hike - a 30% hike while they've controlled town government.
Contrary to popular belief (or CCA Party myth) that our taxes neither favor nor discriminate, Charlestown taxes bend, twist and wiggle a lot. These gyrations reflect social policy decisions our town government makes about which people and what types of activity it wants to reward with tax relief - and who gets to pay full price and cover the cost of those breaks.
In principle, there's nothing wrong with that. In fact, I think it's good for our taxing policies to reflect the things we value and the activities we want to promote.
For example, if we wanted to see a dramatic increase in the number of homes and businesses that change their lighting to conform to dark-sky friendly standards, one way to do that would be to offer a one-time property tax credit to reflect the cost of upgrades. Instead, we have an unenforceable and arbitrary ordinance that is mainly used to plague businesses that try to build or expand in Charlestown. But, I digress....
We have already covered tax breaks we give to the blind and disabled, and the several tax benefits available to veterans. We also looked at the opportunities that large property owners have to drastically cut their property taxes.
In this installment, we’ll cover tax breaks for senior citizens. Charlestown used to offer a straight-forward 65+ tax exemption, but that ordinance was repealed in October 2004. Only senior citizens who had qualified for the program on December 31, 2003 remain on the program, and can remain so until they no longer meet the qualifications.
The old, blanket senior citizen tax exemption has been replaced by one that is severely restricted to those with very low incomes. This new tax exemption is so restrictive that, according to Geoffrey Marchant of the Washington County Community Development Corporation, only 25 Charlestown households qualify. There may be more people who are eligible but don't know this tax break exists.
If an elderly person has a total income of between $20,001 and $30,000, s/he can receive a $750 credit. If the income is $20,000 or less, the credit is $1,150.
The latest Social Security statistics show the average monthly Social Security benefit for an elderly retiree is $1,265 or $15,184 a year. The maximum Social Security payment is $2,663 or $31,956.
But all income must be counted on the application form to qualify for this benefit. So you must add any pension payments, income on investments, retirement account distributions, part-time work, lottery tickets, rent, help from family members, bingo winnings, proceeds from cans and bottles cashed in in Connecticut, etc.
Here is the town ordinance pasted in from the town website:
§ 192-9
§ 192-9.1
A.
Low Income Senior Citizen Tax Credit program requires an annual application, income verification, financial statements and Federal Income tax returns, if required to file, to be filed with the Tax Assessor's office.
C.
All applications must be received in the Tax Assessor's office on or before March 1st annually, for the previous Tax Assessment year.
[Amended 3-19-2007 by Ord. No. 303]
D.
All applications will be reviewed by the Tax Assessor, an approval or denial letter will be sent to the applicant within thirty (30) days from the deadline date.
E.
A one-time life insurance payment to the spouse of the applicant will not disqualify the spouse from the program based on income for that year. Thereafter, the spouse must meet all the conditions of the program. Income and other benefits from the insurance payment, in subsequent years, will apply to the total income.
F.
Appeal from any Tax Assessor's determination concerning eligibility or interpretation of the provisions in this ordinance, shall be directed to the Tax Review Commission of the Town.
§ 192-9.2
A.
The applicant must be 65 years of age or older on or before December 31st of the Tax Assessment Year for which this exemption is being applied. Proof of age may be established by birth certificate, baptismal certificate, certificate of citizenship or by other means normally accepted by the Social Security Administration.
[Amended 3-19-2007 by Ord. No. 303]
B.
The applicant must have been the owner-occupant of the property and a legal resident of the Town for one-year prior, for which this tax exemption Program credit is intended. Proof of ownership of the property for which the exemption is claimed, may be established, by confirmation of the Tax Assessor that the property tax on said property has been levied on the residence of the applicant continuously for the required period of time.
- RESIDENCY
- One legally domiciled within the Town for at least 183 days a year, and who is eligible to become a qualified elector in the Town. Seasonal or temporary residency shall not be sufficient.
C.
Full payment of property taxes on owner-occupied residential property for a period of one year within the Town shall constitute proof of eligibility if all other requirements are met.
D.
Affidavit sworn to before a notary public by the applicant as to his or her income, including social security benefits, all other income of the household and asserting that no other income is brought into the household shall be required. Further, the applicant will provide to the Tax Assessor any pertinent documentation to prove financial eligibility, including an applicant's investment and banking statements and any other documents which are relevant to proving eligibility. For the purposes of determining total income, any losses due to real estate, stocks, gambling, and other investments shall not be deducted from income.
§ 192-9.3
Applications for Tax Credit provided for herein shall be made in the form approved by the Town Council.
§ 192-9.4
The application for each and every year shall be filed with the Tax Assessor by March 1.
[1]
Editor's Note: This ordinance provided a retroactive effective date of 12-12-2012.
§ 192-9.5
All Tax Credits will be on a fiscal-year basis in accordance with the current financial management procedures of the Town.
§ 192-9.6
[Added 5-13-2013 by Ord. No. 356[1]]
For the purposes of this exemption, household gross income will be calculated with an annual increase equal to Social Security Administration’s Cost-of-Living Adjustments (COLA) effective as of December 31, 2011 and thereafter.
Example for § 192-9A, $30,000 income level: SS COLA increase for 2011 was 0%, for 2012 was 3.6% and 2013 will be 1.7%, therefore creating an adjusted household gross income limit to an amount of $31,080 for 2012 and $31,608 for 2013, and so on.
Example for § 192-9B, $20,000 income level: SS COLA increase for 2011 was 0%, for 2012 was 3.6% and 2013 will be 1.7%, therefore creating an adjusted household gross income limit to an amount of $20,720 for 2012 and 21,052 for 2013, and so on.
[1]
Editor's Note: This ordinance provided a retroactive effective date of 12-12-2012.
§ 192-10
§ 192-11
§ 192-12
The penalty for anyone falsifying the amount of his or her income and for violating any part of this article shall result in the loss of all benefits, and the applicants property shall be returned to the normal tax rate. The amount of tax money the applicant has saved through these benefits will be billed to the applicant in addition to interest at the rate being used by the Collector of Taxes on delinquent accounts at the time of discovery of the false statement or violation.
§ 192-13
Nothing contained herein shall abrogate or affect the authority of the Assessor under the provision of G.L. 1956 § 44-3-3 (16), as amended.
§ 192-14
[1]
Editor's Note: Former § 192-14, Review of Article, was repealed 5-13-2013 by Ord. No. 356, which ordinance provided a retroactive effective date of 12-12-2012.