In laying plans to slay Newtown’s property tax dragon, local officials are starting to look seriously at providing additional tax relief for senior citizens –– not simply as an act of compassion, but as a strategy to stabilize the property tax rate in the future.

The annual battle by Newtown’s budgetmakers to win public support to cover the cost of public education and other town services was dealt a blow this year by the revaluation of local properties, which placed new and largely unexpected burdens on owners of moderately priced and modest homes. The rapid and extensive development of large luxury homes in Newtown in recent years has not added much to the town’s stock of homes for the sector of the real estate market where the demand is greatest –– in the $250,000 to $350,000 price range. The excess demand for these homes has pushed their price up, with higher tax assessments following close behind. This creates both a social problem and an economic problem for the town.

The owners of many of those homes are senior citizens, often living on fixed incomes, who do not have the flexibility in their household budgets to absorb tax increases of hundreds of dollars year after year. The alternative is for them to move out of town, to go live with a family member, or to try to make ends meet by living in an urban condominium complex. For people who have lived in the town for decades, always contributing their share, this seems like a social injustice.

And when they move out, who moves in? Quite often it is a younger family with children. With Newtown spending $8,168 to educate each child in the school system, the economic danger of this trend should be obvious to all. It just does not make economic sense for the town to incur $8,168, or $16,336, or $24,504 in added expenses year after year because a senior citizen could not afford a $500 property tax increase in 2003.

There are currently two property tax relief programs available to Newtown senior citizens. The state’s circuit breaker program offers property tax savings of from ten to 50 percent for couples earning less than $29,000 and single persons earning less than $26,100. In addition, the town offers a $1,075 tax break to senior households earning less than $35,000 per year or a $636 break to senior households earning less than $50,000. There are 454 households participating in the town’s tax relief program this year. It is safe to predict that the need for an even greater tax break for an even greater number of households will arise as a result of revaluation.

We encourage the Legislative Council to act quickly to significantly expand Newtown’s tax relief program for senior citizens. It is not often that money spent to address a critical social need can be expected to pay significant economic dividends over time. This is an investment Newtown cannot afford not to make.