The Compass today has a full page, color ad on the back containing a description of the real estate tax relief included in the proposed budget. Remember that the hearing on real estate taxes will be held Monday, May 8 at 6pm at Lafayette Winona Middle School. Here is what is included in the proposed budget:
- 5-cent reduction in the rate. I think they can do better than this.
- Expansion of the eligibility for the tax relief program for seniors and the disabled. This is a favorite program of mine and one that I have advocated for over the years. The current eligibility is shown here. Income will be capped at $52,000 (instead of $50,000) and assets are capped at $350,000 (instead of $200,000), both of which are the maximum allowed under state law. The reduction will now range from 20% to 100%, with the 100% income cap being raised from $19,228 to $25,895. Here is the proposed new schedule:
Combined Income Percent of Tax Relieved $0 – $26,895 100%
$26,896 – $32,421 80%
$32,422 – $38,948 60%
$38,949 – $45,474 40%
$45,475 – $52,000 20%
- Continuance of the senior and disabled deferral program first implemented last year. This program has similar requirements to the senior and disabled tax relief program above, with the new income and assets limits of $52,000 and $350,000, respectively. Currently, the deferral carries an interest rate of 5% but that may be changed to 3.5% to match the rate charged on the new tax deferral program.
- A new General Tax Deferral Program. This appears to be the program proposed by Councilman Barclay Winn but it has been tweaked to allow the deferral of taxes on any amount over the first 10% of assessment growth. Other requirements:
- Must have lived in home for at least 5 years.
- Combined household income cannot exceed $100,000.
- Taxes deferred will carry an interest rate of 3.5%.
- Amount of taxed deferred will be due upon sale or transfer of the property.
VIVIAN J. PAIGE | All Politics is Local 