Date: Fri 09-Apr-1999

Publication: Bee

Author: STEVEB

Quick Words:

elderly-tax-relief

Full Text:

Panel Will Study Tax Relief For Elders

BY STEVE BIGHAM

The Board of Selectmen Monday voted to create an ad hoc committee to look into

a proposed tax relief plan for the elderly in Newtown.

First Selectman Herb Rosenthal recommended the panel be created after a

handful of residents urged the town to alleviate the tax burden currently

placed on those who have retired.

In advocating the tax relief, Jim MacNaughton of Poverty Hollow Road pointed

out that many of Newtown's elders have paid off their mortgages, but are

having trouble keeping their homes due to high taxes. The tax rate continues

to climb as new homes are built and young families move in. School enrollment

figures have increased an average of 135 students per year over the past eight

years. Today it costs more than $7,000 to educate a child each year. Taxes

have risen proportionately. Elderly residents, who use far fewer services than

children, are getting hit hard.

Paul Caulkins of 10 Putnam Road said he spends more in taxes each year than he

does on food.

The selectmen have said they are in favor of some sort of tax break. Exactly

what kind of tax break and the amount of savings it will provide seniors will

be questions the advisory committee must answer. The board will consist of

members James MacNaughton, Charles Hegenauer, Paul Caulkins, Cathy Andrews,

Jeanne Honan, Joy Previdi, Will Rodgers, James Smith, Marie Smith and Walter

Motyka.

First Selectman Herb Rosenthal supports the tax break proposal.

"A tax break limits the number of elderly moving out and the number of kids

moving in. That's in addition to the fairness issue," he noted.

In providing a savings for the elderly, the overall tax burden of the town

shifts in the direction of people 65 years of age or younger. Selectman Bill

Brimmer suggested the committee include residents who represent the younger

taxpayers. Some residents wonder how a tax break for the elderly will sit with

these younger residents.

"They're going to be old someday too," Charlie Hegeneur of Chimney Swift Road

said last month.

The town already offers a $250 tax break for 136 elderly taxpayers who qualify

under certain income qualifications. The existing tax relief plan costs the

town $32,000 in tax revenue each year.

"I'm really pleased to see we're looking at this," noted Tax Collector Carol

Mahoney. "There is certainly a need to assist senior citizens, many of whom

are living on fixed incomes."

In 1994, the town opted to raise the tax break from $125 to $250. The advisory

committee is charged with studying Newtown's existing ordinance as well as

elderly tax relief ordinances in area towns, as well as towns of similar size

and wealth. The committee will also review Connecticut general statutes

regarding elderly tax relief programs and enabling statutes for municipal tax

relief. It may recommend the tax relief program be expanded to assist a larger

percentage of the senior citizens population.

Following its research, the panel will make recommendations to the Board of

Selectmen for revision and improvements to the local ordinance. The panel is

also requested to provide estimates of the total amount of lost revenue for

any proposed revision.

According to the first selectman's office, there are 2,439 senior citizens

living in Newtown.