To: First Selectman Linda Hodge
Colchester Board of Selectmen
From: Rosemary Coyle, Chair
Elderly Tax Relief Task Force (ETRTF)
Date: May 1, 2008
Re: Update on the work of the Task Force
The Elderly Tax Relief Task Force (ETRTF) has met 6 times since its initial meeting on January 24th. The next meeting is scheduled for May 5th with the sole agenda item of finalizing the changes to the elderly tax relief ordinance originally adopted October 28, 1993. The new ordinance title would recognize the proposed change to include permanently and totally disabled – “Colchester’s Tax Relief Program for Homeowners who are Elderly or Permanently and Totally Disabled”. After the ETRTF takes final action, the ordinance needs to go to the Board of Finance, the Board of Selectman and a Town Meeting for approval.
The ETRTF has taken the following actions:
1. The task force produced a flyer called 2008 Tax Relief Options. The flyer briefly explained tax relief options currently available to Colchester residents and how to obtain more detailed information. The flyer has been distributed across the community, is available in town hall and on the Colchester Town website. The flyer will also be updated if the new ordinance is approved by the town.
2. After a lengthy discussion, the ETRTF decided to separate the issues of tax abatement and tax deferral and to proceed with immediate and future goals.
3. The immediate plan was to modify Colchester’s Local Elderly Tax Deferral Program so it would benefit Colchester’s taxpayers this coming year, July, 2008.
4. After that was accomplished, the ETRTF would look at the issue of tax abatement.
The following are the enhancements that are being proposed in the new version of Colchester’s elderly tax relief ordinance:
1. The proposed ordinance also includes permanently and totally disabled individuals as eligible to apply for tax relief. The original ordinance only included eligibility for individuals 65 year of age and over and their spouses.
2. The income limit for Colchester residents has been raised up to $5000 above the state’s elderly tax relief program qualifying limits of $29,800 for single individuals and $36,500 for married individuals. Colchester’s limits for this year will be $34,800 for single individuals and $41,500 for married individuals. Since the state adjusts the qualifying income limits on an annual basis, Colchester’s qualifying income limits will also adjust annually.
3. The filing period has been extended from February 1 through August 1. The original ordinance had a filing period of February 1 through May 15th.
4. The interest rate on deferred taxes was lowered from 4% to 3%. The Board of Selectmen may adjust this rate annually to take in account prevailing market conditions.
5. Beginning in 2012 and every five years, the ordinance will be reviewed by a local option property tax relief task force.
6. Language was also added to protect the town in the repayment of the tax relief that was granted.
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