By Alex Malm
During the Monday, June 20, Town Council meeting one of the subjects discussed revolved around possibly expanding the elderly tax exemption.
Town Council Chairman, John Farrell, explained that they budget well in advance, which can make it difficult to expand things like tax exemptions outside of the budget season.
“We budget a year and three months out in advance,” said Farrell.
He added that they recently broke their own rule when they extended the Veteran tax exemption without having the funds to cover it. He said that because of the amount it could cost by extending it they may need to put it on the ballot or incorporate it into the budget this fall.
Tax Assessor Steve Hamilton said that currently the income limits for those in town is $40,800 for single people, and $50,300 for married couples.
Hamilton said, “The asset limit for both single and married is $137,000.” Adding, the last time they adjusted the limits was in April 2019.
“There have been no adjustments since then,” said Hamilton.
Hamilton explained that other towns have higher limits. He said that he thinks it’s important to look at, particularly because of inflation.
“All we have to do is go to the grocery store and we see inflation,” said Hamilton.
Hamilton said that they looked at what the income limits would be with the CPI factored in and it would make the incomes a lot higher.
Town Manager Mike Malaguti warned the Council that one of the potential issues with expanding the eligibility requirements is that they don’t know how many people in town will then qualify.
He explained that the only people they know the income and assets levels for are people who are receiving the exemptions currently or they applied and didn’t qualify.
“We don’t know how many people out there who may qualify for an expanded benefit,” said Malaguti.
Town Councilor Deb Paul asked if their qualifications line up with the state requirements for things like heating assistance and other benefits. She also asked if there is a way to prevent any type of fraud from happening.
Hamilton said that they verify everything after someone applies for the exemption.
It was pointed out by Farrell that right now they give about $800,000 in relief through exemptions now. He said that if they want to expand it then they have to budget for it.
“If we are going to give any relief we have to budget for it, we can’t just give it,” said Farrell.
Farrell said that ultimately they have to raise about $120 million a year to run the town and the schools.
“It’s a balancing act,” said Farrell.
No decision was made by the Town Council during the meeting.