Date: Fri 17-Sep-1999

Publication: Bee

Author: STEVEB

Quick Words:

Hames-Mahoney-tax-break

Full Text:

Officials Question Proposed Tax Break For Seniors

BY STEVE BIGHAM

Newtown's tax collector and tax assessor both say they support the idea of a

revised tax benefit for the elderly. They just don't like the recent proposal

by the ad hoc Elderly Tax Relief Committee.

In short, said Carol Mahoney and Denise Hames, the plan now on the table will

cost the town far too much money and offers tax relief even to those who may

not need it. The proposed plan, according to Mrs Hames, would provide an

average of $1,674 worth of tax relief for each of the estimated 2,000 Newtown

residents over age 65.

That works out to $3.3 million in lost revenue to the town. A homeowner's

taxes would be increased over $350 per $150,000 of assessment. That is a far

cry from the current elderly tax relief plan, which provides $250 in savings

for those elderly residents with an income below $23,000 (or $29,000 for

married couples). The current plan costs the town just $32,000 in lost revenue

as only 130 residents are eligible under the requirements.

On Monday, both Mrs Mahoney and Mrs Hames proposed an amended plan that

provided more relief than what the elderly currently receive, but far less

than what the committee offered. Their plan would up the eligibility

requirement by 20 percent over the state recommended income qualification to

$28,320 ($34,680 for married couples). It would also raise the relief from

$250 to $750. An estimated 225 elderly residents would be eligible under the

new plan -- a loss of $169,000 in revenue for the town.

"We felt this was a reasonable figure," said Mrs Mahoney, the town's tax

collector.

Jim MacNaughton, chairman of the ad hoc committee, believes it is important to

provide all seniors -- no matter what their income level is -- with a tax

incentive. After all, he said, seniors are far less expensive citizens than

families with school-age children. Each student costs the town about $7,500

per year, Mr MacNaughton said.

"Why should someone be penalized for making more money than someone else?

We're trying to make this attractive to all seniors so they want to stay in

town," Mr MacNaughton said.

Also, the ad hoc committee believes the estimate of 2,000 senior citizens in

Newtown may be too high. The committee believes there are 1,200 to 1,500

elderly residents. A recent survey was sent to all residents asking whether

they were 65 or older, but only a small percentage of residents responded to

the questionnaire.

The ad hoc committee's proposal mirrors that of Redding's in that it puts no

cap on salary and provides a $60,000 deduction on the assessment.

The proposal also includes a provision that no senior receive more than a 75

percent credit against his tax bill, which would limit the revenue lost by the

town.

The ad hoc committee is scheduled to meet with the selectmen October 4.