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02/09/2016 03:30 PMOne of the most popular issues discussed on the local 2015 campaign trail is coming back into the spotlight: the senior tax freeze. After two months of work, the Senior Tax Relief Committee is preparing to make its official recommendation to the Board of Finance (BOF) on Wednesday, Feb. 17.
The idea behind a senior tax freeze is that some seniors, often on limited, fixed incomes, could be priced out of their hometown by taxes that rise above their ability to pay—a situation eliminated if their taxes are frozen at a current rate.
First Selectman Tom Banisch, who has heard the committee’s suggestions, said he is pleased with the progress that has been made.
“My goal with this whole tax relief program was that the neediest people get something that is meaningful for them,” he said.
Committee member Scott Gyllensten said the committee has tried to look at the issue holistically and provide a comprehensive plan, despite the relatively short amount of time it was allotted.
“The state statute only gives the committee 60 days to complete our analysis and form our recommendation,” he said. “Despite the short timeframe to get the analysis done, I think we have come up with a comprehensive list of recommendations that if implemented will really help a significant number of seniors in Madison.”
While the official presentation has not been made, Gyllensten said the committee has included several factors that need to be met to for seniors to qualify for the freeze.
“Consensus is that the tax freeze should take into account income, length of residency, age, and the assessed value of the home,” he said. “While our proposal is modeled after Guilford’s, our recommendation builds off of Guilford’s program and is focused on providing relief to those residents who have the greatest need.”
Based on current assumptions, approximately 30 percent of senior households will qualify for the program. Gyllensten said the committee has considered a cap to maintain the size of the program, and has investigated the long-term impact of the freeze.
“The cap would be based on the percentage of budget allocated to the program instead of a fixed number of participants,” he said.
Additionally, the tax freeze will not replace the current abatement program, which will help limit the impact of the freeze in its first years. The current abatement program operates on a scale that, for example, offers some senior households with incomes between $50,932 and $63,660 an annual property tax abatement of $490, or households with income of $18,778 or less with $1,269 in tax relief.
“Seniors would be able to enroll in both programs, but would only receive the higher of the benefits under either program,” he said. “This allows seniors currently on the abatement program to continue to receive their full benefit. For most seniors, they would be better off on the tax freeze after about seven years. This approach allows a smooth transition to the tax freeze that maximizes their benefit.”
Gyllensten also addressed concerns over how the freeze will affect other Madison residents.
“The impact varies by year,” he said. “Guilford estimates the impact at $65 [per taxpayer] per year. The impact in Madison will be lower in the early years and may increase to about $150 a year (in 2016 dollars) over the 40-year projection.”
If the proposal makes it through the boards of Selectmen and Finance, it would be presented as a new ordinance, which would require a public hearing and a town meeting, Gyllensten said. If everything proceeds smoothly, eligible seniors could apply for the credit for their 2016-’17 tax bills.
The official presentation from the Senior Tax Relief Committee to the BOF will be made Wednesday, Feb. 17 at 7 p.m. at Town Campus.