Date: Fri 05-Mar-1999

Publication: Bee

Author: STEVEB

Quick Words:

tax-breaks-elderly-selectmen

Full Text:

Bid For Tax Breaks For Elders Gets Support

BY STEVE BIGHAM

Paul Caulkins of 10 Putnam Drive says he spends more on town taxes than he

does on food each year. That is why he went before the Board of Selectmen last

night to show support for a proposed tax relief program for the elderly.

Mr Caulkins joined fellow residents Jim MacNaughton and Charlie Hegenauer in

urging the selectmen to form a committee to study the best way to establish

the program. As they pointed out, local taxes continue to rise and remain a

major burden for the elderly, particularly those on a fixed income.

The selectmen say they are in favor of some sort of tax relief. Selectmen Bill

Brimmer called it imperative that Newtown strive to keep its senior citizens

here in town. Many of Newtown's elders have paid off their mortgages, but are

having trouble keeping their homes due to the taxes, noted Mr MacNaughton, who

first proposed the plan two weeks ago.

Local statistics show that when a house sells in Newtown, an average of 1.6

kids move in. There used to be parity; the same number of children moved in as

moved out. So, as First Selectman Herb Rosenthal pointed out, there is

certainly economic incentive to give tax credits. Today, it costs more than

$7,000 to educate a child each year. Elderly residents use far fewer services

than children.

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

moving in. This is in addition to the fairness issue," Mr Rosenthal said.

Selectmen Joe Bojnowski suggested that any tax relief program be made

available to those age 60 and over rather than 65 and over. By waiting to

offer the plan to only those over 65, Newtown may lose many of its residents

to Florida's warmer climate and cheaper taxes, he said.

Resident Ruby Johnson wondered how such a plan would sit with Newtown's

younger taxpayers.

"They're going to be old someday too," said Mr Hegenauer of Chimney Swift

Road.

Through the state, Newtown does offer a plan that provides some tax relief.

However, as Mr MacNaughton points out, it only "puts a few extra dollars in

your pocket." Also, of the 2,400 senior citizens in Newtown, only 148 took

advantage of the program this past year. That may because of the income

requirements, which allows only those earning less than $28,900 to apply.

"That figure is antiquated," Mr Hegenauer said.

Last month, Mr MacNaughton spoke of his concern over the potential spending

taking place in the Board of Education's efforts to keep the school system in

alignment with the increasing enrollment.

Since he made those comments, the Poverty Hollow Road resident said he has

received numerous phone calls and letters of support from other seniors in

town.

As Mr MacNaughton points out, tax relief plans for municipalities are nothing

new, and he used Redding and Ridgefield as examples. Both have had programs in

place since the mid 1970s. Redding's plan takes the first $50,000 value of the

assessment and multiplies it by the current mill rate. The resulting amount is

then deducted from the amount of taxes due. All senior citizens are eligible

to take advantage of the plan, regardless of income.

In Ridgefield, residents 65 and over who have lived in their home for at least

one year are eligible for a $700 deduction in their tax bill. A second plan

allows elderly residents to defer paying 100 percent of their taxes until they

sell their house or die. Under this plan, residents cannot have an annual

income of over $40,000.

Mr Rosenthal said he hopes to find out how many elderly residents moved out of

town, specifically due to the high taxes.

Of the 2,439 senior citizens in town, 1,375 are female and 1,054 are male.

Mr Rosenthal said a new tax relief program for the elderly would require an

ordinance revision and, therefore, would require action by the Legislative

Council.