October 31, 2007

Tax break proposed for seniors

By Leslie Friday
Newton Tab

Newton - With Mayor David Cohen’s looking for a property tax hike this spring, a bill pending on Beacon Hill could offer some relief to nervous senior citizens and low income residents. 

Rep. Ruth Balser, D-Newton, has re-introduced a bill this session that would provide property tax relief for low-to-moderate income seniors living in communities where an override is passed.

Under the plan, some seniors and others would be responsible for their regular property tax payments, but would not see their taxes increased even if a tax override is approved.

  Mayor David Cohen, along with other city notables, has advocated for the bill on Beacon Hill. He was hopeful it would pass this session.

  “Throughout the Commonwealth, it will benefit those people on fixed incomes and the elderly for whom [an override] is a real burden,” Cohen said in his Oct. 29 press conference.

  Approximately 10 percent of Newton households could benefit from the tax break, the mayor said.

  Balser’s bill sets specific qualification guidelines. Property owners would have to be at least 65 years old, live in the property they own and make real estate tax payments that exceed 10 percent of their income – or $60,000 for a couple.

  Those interested would have to apply for the tax break through their town or city’s assessor’s office on or before July 1 of the year in question.

  If passed, the legislation would give city and town officials the choice of including the senior tax exemption alongside any Proposition 2 ½ override presented on the ballot.

The notion of senior property tax relief surfaced after Newtonites for and against the 2002 override came together to discuss constructive solutions to the city’s tax situation. George Foord, former aldermen Brooke Lipsitt and John Stewart, and Alderman Ted Hess-Mahan were among those citizens forming the Tax Equity Study Group.

Opposed to the 2002 override, Foord said he was bothered that the people most financially harmed by tax increases, namely seniors, had no means to lessen the blow.

“We seem as a city to be going out of our way to force people to leave,” Foord said.

Working with the mayor, the group came up with ideas on how to avoid overly burdening seniors and presented them to Balser. Their combined efforts evolved into House Bill 2840, which Balser has filed twice in the past.

  Two weeks ago, the bill passed out of the Joint Committee on Revenue and will soon move to the House for a vote.

  Balser presented the bill as a win-win situation for voters.

  “It would provide relief of the burden of an override, while allowing the larger community to vote for an override,” she said.

       Senior advocacy groups and parents of school-age children back the bill. Balser was not surprised by the latter group’s support.

“They feel [the bill] will help them be able to raise needed revenue to promote the schools,” she said. “At the same time, they don’t want to burden their neighbors.”

Sen. Cynthia Creem, chair of the Senate Revenue Committee, is a co-sponsor and strong supporter as well.

Still, critics argue that cutting property taxes for one sector of the population means that a greater burden is placed on other Newtonites.

“We always have to make choices,” Balser said. “I think it’s important not to force people out of their communities.

“Seniors owned property many years ago,” she continued. “It’s worth a lot, but they don’t have that as income to live off of.”

Jayne Colino, director of the department of senior services in Newton, said so far seniors have not talked much with her about the proposed override or Balser’s bill. However, she is aware of the legislation.

“If there’s a benefit to be had for people who our mission serves, our responsibility is to educate ourselves to help people make informed decisions,” Colino said.

The fact that local and state officials are considering the seniors’ plight made Colino proud of her community.

“You can’t put forward an override in a vacuum,” Colino said.

Some seniors, like Robert Suchman of Chestnut Hill, are aware of and support the Balser bill. But, he said, “it never gets passed.”

A renter himself, Suchman said he doesn’t vote against overrides when they surface. Still, he would appreciate seeing a break for seniors.

So would Tom Sheff, who is running for Ward 8 alderman at-large and strongly opposes an override.

“I don’t think people should be taxed out of the city is the bottom line,” Sheff said.