Bowen outlines plan for senior tax relief

Date: 10/25/2011

Oct. 24, 2011

By Chris Maza

Reminder Assistant Editor

LONGMEADOW — Longmeadow Council on Aging Chair John Bowen outlined the details of his proposal to bring a tax relief measure to fixed-income seniors at an informational session at the Adult Center on Oct. 20.

Before a gathering of approximately 65 seniors, as well as Select Board Chair Mark Gold, Board of Assessors Chair Jonathan Fein, School Committee member John Fitzgerald and State Rep. Brian Ashe, Bowen explained the benefits and costs of implementing the Means Tested Property Tax Relief Program.

Bowen said the program, which is currently being employed in the towns of Hamilton and Sudbury, is specifically designed to benefit seniors who qualify for the state’s Circuit Breaker program. Circuit Breaker offers a $980 reimbursements to residents whose property tax bills exceed 10 percent of their total income.

“The state’s Department of Revenue tells us that there are 353 people taking advantage of the Circuit Breaker program,” Bowen said. “The group that is hurting the most are the people trying to live on earnings of $25,000 to $35,000 and live alone, but are unwilling to leave their house.”

As an example, Bowens said through the Means Tested Property Tax Relief Program, those earning $25,000 and paying $5,000 in property taxes would receive $980 from the state, plus an additional $980 tax rebate from the town.

Those who make $35,000 would receive $980 from the state and $500 from the town. Those earning $45,000 might receive consideration from the state, but would not receive any rebate from the town.

In order to fund the reimbursements, the voters would be asked at Town Meeting to appropriate a certain amount of money, which has yet to be determined.

“I am guessing it would cost somewhere around $150,000,” Bowen said. “Obviously we would be careful and do our homework before drafting an article for a warrant.”

Fein, who said he was “100 percent in favor” of the program, cautioned those present at the meeting that they must be careful when applying for the Means Tested Property Tax Relief.

“You will really need clarification on qualification,” he said. “There has to be an understanding that when you get a refund from the town, that could change your taxes enough so that you would not qualify for the Circuit Breaker and you could lose that state reimbursement, so you have to do a balancing act.”

Fein added that Longmeadow already offers a $250 tax rebate for low-income residents and that those who receive one credit would not be eligible for the other.

Bowen said that he has discussed the credit with Fitzgerald, who offered his support because of the benefits such a program could offer the School Department as well as the senior community.

“What this program does is it helps prevent the turnover of property, allowing seniors to stay in their homes instead of selling to families with children, which puts extra burden on the schools,” Bowen said.

Bowen stressed that in order for the initiative to move forward, seniors have to be vocal in their support of it to town officials.

“Town officials have a good humanitarian streak, but they’re not going to do anything about this unless they know the seniors are interested,” he said.

In order for the program to become a reality, it must be approved at a Town Meeting.

“First we have to sell it to the community and then we have to prepare an article for the warrant and take it to the Select Board,” Bowen said. “From there, we have to take it to a Town Meeting.”

He added that he hoped to bring a warrant article before the town by the spring Annual Town Meeting.

“Timing is critical,” he said. “Because there may not be a funding override next spring, it could be a good time to present it at a Town Meeting.”

Gold said there would have to be a quick turnaround in order to get the spending for the program approved in the budget.

“My sense is if it is a line item in the budget, then it just has to be part of the budget passed at Town Meeting, but that means this all has to be done sooner,” he said. “It’s much harder to change the proposed budget on the town meeting floor.”