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Date: 12/18/2023
SPRINGFIELD — The Springfield City Council Subcommittee on Elder Affairs hosted a meeting on Dec. 11, to discuss programs to offset property taxes for elders.
The meeting was a follow up to the Nov. 28 City Council meeting, during which several members of the senior population testified against the fiscal year 2024 property tax increases proposed by Mayor Domenic Sarno.
Chairperson Victor Davila explained that the City Council recently conducted a tax classification hearing and lowered the tax rate by 99 cents. The FY24 residential tax rate in the city of Springfield is $16.06, which is down from the FY23 tax rate of $17.05.
This year, the average single family home value has increased by 16% and the average three family home has increased about 23%.
“We are fully aware that times are tough,” Davila said. “We realize that we are expecting some difficult times ahead of us and I think that we need to start talking about — quickly — what our seniors can benefit [from].”
Regarding abatements, Board of Assessors Chair Patrick Greenhalgh explained that there are a few statutorily created personal exemptions. One of those exemptions is a 41C, which is for someone over the age of 65. The City Council lowered this age from 70 last year and doubled the exemption amount from $500 to $1,000.
“If someone qualifies for this, there would be a $1,000 reduction on their tax bill. There are income and asset restrictions on this, and it is also based on whether or not somebody earned social security,” Greenhalgh said.
In short, if a married couple both earned social security, then the maximum income that the couple could earn to qualify for this program for FY24 is $42,667, he explained. There is an asset limit, but since a home is not considered an asset, it would not go into this calculation. For a married couple, that asset limit would be $55,000. That would look at any bank account balances, any stocks and bonds that are owned, any other real estate owned and so on.
For a surviving spouse, someone who is over 70 years old or a minor that owns a home, there is a $175 tax abatement available. While there is not an income maximum for this exemption, there is an asset maximum of $40,000.
In this case, a home is also not considered an asset.
There are also exemptions for someone who is blind, however, the individual must have a certificate of blindness from the Massachusetts Commission for the Blind. With this, the individual would receive a $437.50 tax reduction per year.
The final statutorily created personal exemption is for property owners who are disabled veterans or their spouses, which can range anywhere from $400 and a full exemption, depending on their status with the Veterans Affairs and their disability rating.
Davila asked if there was a way to get this information to the public on a “cheat sheet” with bulleted information, to help them better understand the program, income limits and assets.
Greenhalgh said that it had been done in the past through press releases, which could be updated and sent to councilors and neighborhoods.
Starting in January 2024, City Councilor Zaida Govan said she and Councilor Tracye Whitfield — among others and Greenhalgh — will be going on a “tour” to various senior centers to discuss this issue. She shared that she thinks people might need to hear about the tax abatement options more than once, see it in writing and be reminded.
Govan is hoping for the meetings to take place in a hybrid fashion, opening the conversation to more people.
For anyone who thinks they might qualify for these exemptions or has additional questions, contact the Assessors Department at 413-886-5256.
Next, the subcommittee discussed the Circuit Breaker, which is a state program. Although it is not administered through the city of Springfield, it is often talked about by city officials because this program is specifically designed to help individuals over the age of 65 offset their real estate taxes with a direct refundable tax credit. Even if you do not owe any taxes, a refundable tax credit means you will still get the refund as opposed to other types of owed deductions.
With the Circuit Breaker, someone over the age of 65 has to file their state income tax returns through a form called CB, short for Circuit Breaker. There are income limits on this as well, which are much higher than the 41C program.
For tax year 2023, if a married couple is filing jointly, maximum income would be $103,000.
Greenhalgh explained that it is a formula that looks at the amount of taxes and about 50% of an individual’s water and sewer bill.
“The governor recently doubled the tax credit,” he noted.
As a preliminary review, the Massachusetts Department of Revenue noted that the city of Springfield had 1,633 filers with an average credit of $909.
The last program that was discussed during the meeting was senior work tax write off.
Greenhalgh said, “This is a pilot program that the City Council adopted in 2019. Due to COVID, it did not get established, and we were looking at reviving that.”
He went on to say that the city is looking to get this implemented for FY25, which would start July 1, 2024. This would be a “pilot test year” with 20 participants to see how it plays out, receive feedback, and address any questions for issues.
The Assessor’s Department is responsible for the abatement aspect, but the administration of the program is done through the Department of Elder Affairs.
Elder Affairs Director Sandy Federico pointed out that her department has created some applications — both in English and Spanish — for residents, along with a frequently asked questions page.
Federico said both the questions and applications are in a queue on the city’s website, waiting to be released. Once released, the applications will be available online and in print, at all senior centers and the Assessor’s Office.
Regarding the slow roll out of the program, Davila asked why it has taken four years, regardless of the coronavirus pandemic.
While most of the program has been ready to go for some time, Federico said, “There [have] been some challenges getting all the pieces in place and meeting with everyone.”
The Department of Elder Affairs has had many vacancies since COVID-19, with three positions that are still unoccupied.
Federico shared that she is concerned about operationalizing this program. “Although we’re saying it’s a pilot program and only 20 people, my concern is for it to be successful and to learn from it, but I’d also like to see it grow,” she said, in addition to addressing the staffing concerns.
Health and Human Services Commissioner Helen Caulton-Harris said she asked the city to allocate $5,000 in overtime for Federico’s staff, so that they can implement this program as soon as possible.
Caulton-Harris noted that it is difficult for the staff to take on this added responsibility on top of keeping the center running. However, if the staff can stay later and be provided with overtime, they will be able to implement this program.
Whitfield mentioned the idea of adding an additional position by asking for it in the next budget.
Regarding the pilot program with only 20 people, councilors asked for a cost analysis to see if they could expand the group to more seniors.
Govan said she likes the idea of starting this program with the 20 people and hopefully perfecting that, so that the number can be scaled up the following year.
“I look forward to seeing this program up and running in an orderly fashion,” Davila said.