$35,000 Added To Tax Relief Fund For Seniors

By Steve Bigham

The Legislative Council Wednesday approved a $35,000 adjustment to the town’s newly created Elderly Tax Relief Ordinance.

That means all those seniors who were put on a waiting list because the fund had run out of money are once again eligible for savings. The program had been set up on a first-come-first-serve basis and town officials were unsure how many elderly citizens would take advantage of the plan.

Earlier this year, the council agreed to set aside $330,000 to be used for the program. However, that money ran out after seniors packed the tax collector’s office last month to stake claim to their savings. About 35 late-arriving seniors were left out in the cold. This week’s move by the council assures that all elderly residents within a certain income level will get a tax break this year.

This week Tax Collector Carol Mahoney announced that the $330,000 had run out. First Selectman Herb Rosenthal and the town’s ordinance committee suggested that the cap be raised.

“We were hoping there would be enough money there that nobody would be left out. We thought the $330,000 would be enough,” Mr Rosenthal said.

The additional money provided to seniors would simply mean less tax would be collected, Mr Rosenthal said.

“Collectively, it will not be a significant impact. $35,000 out of $67 million in very small,” Mr Rosenthal said.

To be eligible under the Elderly Tax Relief Plan, the person or persons must be over 65, have lived in Newtown for at least one year, and live in the home for 183 days out of the year. Those with household income levels between $0 and $35,000 will receive a $1,000 tax credit, while those earning between $35,000 and $55,000 will receive a $600 tax credit. The program will be reviewed again next year since it was rushed through this spring in order to provide immediate tax savings.

This past spring Mrs Mahoney urged town officials to pass the 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 for 60 to 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 in an effort to keep Newtown’s elderly in town. A senior citizen requires fewer services than a family with young children.