By Steve Bigham

How does a municipality determine the number of homeowners over age 65 living in its town? That’s a question Newtown is attempting to answer as it sets out to offer senior citizens a more substantial tax relief program.

Here’s what the town does know. In 1998, there were 2,400 residents over age 65 living in Newtown. Of that, 1,375 were female and 1,054 were male. However, to date, the town has no definitive numbers on those senior citizens that pay real estate taxes. Town officials made an attempt last spring when they sent out a survey with each tax bill, but only 400 residents responded. The poor response was blamed on the questionnaire’s small type and location at the bottom of the bill.

Currently, the town’s ad hoc Elderly Tax Relief Committee is looking to come up with a plan that provides better assistance for Newtown’s elderly. The Board of Selectmen has stated its inclination to support such a plan, but won’t move forward until it has a better feel for what the town will lose in revenue.

“We have to know how much this is going to cost us. Until we do that, we can’t move along,” noted Selectman Bill Brimmer at Monday’s meeting of the Board of Selectmen.

During Monday’s meeting, someone suggested adding a question about taxpayers’ ages in the Year 2000 census, but others said the results would take too long to get back. Someone recommended the question be asked at the polls during next month’s election. But, even though the elderly have a better voting record than most, it still would not be the most scientific survey. Finally, Tax collector Carol Mahoney said she would send out a town-wide mailing, asking homeowners if they are over age 65. There are a total of 9,700 real estate accounts in Newtown currently.

Jim MacNaughton’s ad hoc tax group submitted its proposed tax deferral plan last month. In it, the committee called for across-the-board tax savings for all seniors – not just for those whose income levels fall below a certain dollar amount. The committee’s plan would provide an average of $1,574 worth of tax relief for each of the estimated 2,000 Newtown residents over age 65.

That plan came under fire by both the town tax collector and tax assessor who said the committee’s plan would work out to $3.3 million in lost revenue to the town. That’s a far cry from the current tax relief plan, which provides $250 in savings for those seniors with an income level 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.

 Both Mrs Mahoney, and Denise Hames, tax assessor, do not believe all seniors should be eligible. Afterall, they figure there are probably some very wealthy senior living in town. They have proposed an amended plan that provides more relief than what the elderly currently receive, but far less than what the committee has offered. Their plan ups the eligibility requirement by 20 percent over the state recommended income guideline 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.

On Monday, First Selectman herb Rosenthal suggested a tax freeze for all seniors, which would keep their taxes at the same level as they paid the year before.

“It would be a gradual increase in tax savings so it would not be a huge hit to revenue all in one year,” Mr Rosenthal said. “The average assessment of a home in Newtown is $170,000, so the average homeowner over age 65 would get a tax break of $150 because the average tax rate increase is one mill.”

Or, Mr Rosenthal suggested the town could provide seniors with a small credit that could slowly be increased each year.

Committee member Will Rodgers, who doubles as the Legislative Council’s ordinance committee chairman, had another suggestion. Why not have the town figure out what it can give up in revenue and go from there, he suggested. The number of senior citizens is not as important as the amount of money the town can afford to lose, he added.

Mr MacNaughton said his committee will return to the drawing board to study the tax freeze idea.

“Maybe we can wrap this up by Christmas,” Mr Brimmer said.

Or soon thereafter. Mr Rosenthal said a plan must to be in place before the next budget season which starts early next year.