With Senior Tax Relief Deadline Looming, More New Participants Applying
As the May 15 application deadline approaches, officials have announced that about a quarter of Newtown’s approximately 3,500 seniors have already qualified for an average 41 percent credit through one of the state’s most generous localized senior tax relief programs.
Finance Director Robert Tait reported to the Legislative Council May 8, that in an unofficial audit of 25 applicants for the next two-year round of income-determined and tiered credits, the average discount being credited is 41 percent. That percentage is close to the same average discount seniors received in the 2014-15 fiscal cycle.
Tax Collector Carol Mahoney since confirmed that as of May 11, a total of 870 seniors have applied.
Among other key points Mr Tait and Ms Mahoney made to the council were:
*The qualifying cap for applicants — 200 percent of the median assessed value of their residential home — is $468,000 for the 2015-17 benefit cycle. And the assessed value can be determined with a couple of clicks on the Town Assessor’s website, or by visiting the office.
*The qualifying asset cap, after one’s local primary residence, is $1,250,000.
*Up until the May 15 application deadline, Tax Collector’s Office staff will be working with Social Services to try and identify and reach out to individuals who may still qualify for the program.
*Tax office staff will work with both new and renewing seniors to help complete the new application — the first calling for verification of income and assets, and an accompanying asset affidavit.
Ms Mahoney told the council last week that the program is being “very well received.
“Folks are happy with the new income bracket, and they are accepting of the asset testing,” she added.
Mr Tait said 42 new applicants have qualified for some tax relief since the town permitted a new tier of eligibility for those earning between $65,001 and $70,000 in reported income.
In the lower tiers, households earning $0 to $45,000 may qualify for a maximum benefit of $2,525; those with an income of $45,001 to $55,000 may qualify for a maximum benefit of $1,750; and those earning $55,001 to $65,000 may qualify for a maximum benefit of $1,300.
Ms Mahoney said applicants understand it is a needs based program, and that there have been “no issues” between tax office staff and applicants regarding any aspect of the town’s recently updated procedures.
Council Chair Mary Ann Jacob wondered if the town could mount a direct mail effort to be sure all seniors and other qualified residents are aware of local tax relief programs.
First Selectman Pat Llodra, who was attending, said stuffing reminders about the program in all local motor vehicle bills has the potential of reaching the most qualified residents.
Council member Eva Bermudez asked if the tax collector might consider sending staff to knock on doors of seniors who appear on paper to likely qualify. But Mrs Llodra said she is confident current efforts are reaching everyone in need.
“We have to be considerate of the [staffers’] time that other taxpayers are covering,” the first selectman said.
Councilman Paul Lundquist said he would like to see how high and strong a response the town could develop with the latest and most robust benefit program the town has ever offered.
As of May 5, Mr Tait told the Council that 80 former applicants who qualified for some benefit have yet to re-apply. He noted that there were 357 applicants in 2014, and 223 reapplying this year.
He said one new applicant who was denied benefits could not produce verification of property ownership; one re-applying taxpayer’s property exceeded the property value cap; and three new and eight former applicants were also disqualified because they were determined to be over the income cap.
The largest block of qualifying applicants for this year — 340 individuals including 14 newcomers — are receiving a $2,525 credit.
Also, 12 of the 121 applicants in the $55,001 to $65,000 range, who qualify for a $1,300 credit, are new to the program.
The 45,001 to $55,000 category has drawn 115 applicants including eight newcomers, and there are six who applied for the first time among the 37 applicants in the new 65,000 to 70,000 tier.
Mr Tait said in 2014, a total of $1,373,455 in credits was extended to qualifying seniors, with a surplus of $275,000 carried over into the new round of benefits.
This report was corrected on May 14 to reflect the correct, updated benefit caps in the top two benefit tiers.