Council Approves Tax Breaks For Emergency Volunteers

By Steve Bigham

The Legislative Council Wednesday approved an ordinance that will provide tax breaks to the men and women of the town’s volunteer fire and ambulance companies. As a way of saying thanks for all they do, town officials voted to provide as much as $1,000 in tax savings.

The new ordinance will go into effect in time for this year’s tax bills.

Between 80 and 100 volunteers are eligible for the plan, which would cost the town approximately $115,000 in lost revenue. But as town officials point out, it is a small price to pay the men and women who volunteer their own time to help others.

The recommended amount of abatement is calculated on a volunteer’s length of service, beginning with $200 after three years of service to the maximum of $1,000 after seven years. Eligibility requirements include holding certain positions within the various volunteer companies, responding to a minimum of 25 calls per year, and being a taxpayer in good standing with the fire departments and ambulance corps.

Last year, the Board of Selectmen officially created the Emergency Volunteer Tax Incentive Committee to study the plan. The committee’s charge was straightforward, since a newly passed state statute already states that towns can now grant fire and EMS volunteers up to $1,000 a year off their property taxes. The committee studied the total number of volunteers who would be eligible for tax savings, and how much it will cost the town in lost revenue.

As Newtown continues to develop, there is the threat that the population might outgrow its volunteer services.

“The way the town is growing, we need all the help we can get to attract new members and keep the existing members around,” said John Basso, a member of the committee.

Four years ago, the town approved a pension plan for volunteers. Under that plan, the town contributes $100,000 per year to a pension fund, on which volunteers can collect after 20 years of service. However, while that program rewards the younger volunteers, it provides little for the older members.

Sandy Hook Volunteer Fire Company Chief Bill Halstead predicts the tax abatement plan should work well in attracting new volunteers because people can take advantage of the benefit right away. And while this tax abatement could end up costing the town some $150,000 per year in tax revenue, it is still better than the alternative – having to go to a paid service where the bill jumps to $4-5 million.