TAX NEWS - 2010

Elderly Tax Relief Benefits Decrease

Elderly and Disabled Tax Relief Program

Wilton's Board of Selectmen voted for a proration plan to assure the town's tax bills get mailed on time and that those in need will get financial relief.

Because of the town's tight budget, the board chose one of four ways to prorate credits under the Elderly and Disabled Tax Relief Program. The town considered four methods, including giving people who qualified last year at least the maximum that they received last year. Another way would have drastically reduced credit for most applicants.

"The fairest way seems to be that everyone who applies gets a share," said First Selectman Bill Brennan during Monday night's meeting.

In January the board approved a plan that caps its total cost at $850,000, with roughly $155,000 devoted to the deferral portion, $600,000 going toward the credit program and the remainder going toward various expenses.

"The $850,000 came from a model that we assumed would be increased," Brennan said. "We realized it might exceed need so we capped it. We can't afford more than that. And we said if we exceeded it, we'd prorate it."

The program provided an estimated $595,000 in credits in 2009. This year's full tax credit applicants totaled $662,474. There were 132 applicants who didn't qualify for the full amount of the credit. They were to be prorated with a total of $12,525.

Of this year's 302 applicants, 170 met the eligibility criteria of an income less than $39,500 for a $4,000 credit. This compares to 236 applicants last year, of which 113 met the eligibility criteria for a $3,700 maximum credit, according to the town finance department.

"It was almost predictable that we were going to go over this cap," said Jerry Holdridge, a member of the Elderly Tax Relief Commission.

Until the board voted Monday, tax bill printing and mailing for July collection was on hold.

Tax bills were held because so many people applied for the program this year, "man of whom qualified for a greater credit than we had experienced in prior years," wrote Sandra L. Dennies, Town Finance Officer, in a letter to the Board of Selectmen.

Now, Wilton residents qualifying for tax credits and deferrals will still get them, but for less than they might have hoped. Next the board will explore the formula with the Board of Finance to find ways to adjust it for the second half of the year, said Dennies speaking before the board.

"My feeling on this is that no matter what we do, someone is going to be unhappy about this," said Ted Hoffstatter. "We're doing it equitably so that all get their fair share."

The Elderly and Disabled Tax Relief Program was designed to help the town's senior citizens remain in their homes despite rising property taxes. It offers tiered benefits to citizens 65 years and older.

While the selectmen agreed they want to increase the aid, the town can't afford to do so right now. And although the board voted for the proration, some selectmen favored other options.

"I didn't want anyone who gets benefits to get less this year than before," said selectman Hal Clark. "If they got $3,7000 in the past they should get the same. People have built this into their budget. Maybe we can consider them as a special group…because that's what they expected this year."

However, Richard Creeth voiced concerned that putting previous recipients in a special group would be discriminatory and possibly illegal.

"Just because they applied last year they shouldn't get different treatment," Creeth said.

The new ordnance increased the maximum credit available from $3,700 to $4,000 and increased the income level of the individuals that could make applications from $63,400 to $74,999. It was also the first time the maximum credit was provided to those whose income was below $39,500 as opposed to last year's $38,100.

"This was one of the toughest decisions we've had to make in a long time," said Brennan.