Sr tax freeze 10/03
The new senior tax freeze option for towns came into existence only two days ago. But the fastest acting towns are already revisiting their freeze. Or at least Torrington is making some changes. (WRA, by Chris Parker) They're adding "asset limits" to the state-imposed "income limits."
I read the article quickly, but didn't catch anything in there about the plan for measuring assets. I'm not certain that all (or any) tax forms require asset disclosure.
Tim White
State Rep candidate (R-89)
Bethany, Cheshire & Prospect
TimWhite98@yahoo.com
8 comments:
I had asked earlier if there was going to be an asset based test...its like applying for welfare.... you can have self certification...with ability to check for fraud...If I was a senior I would be more interestd in the line about placing a lein on a home to recoup the lost taxes upon sale of the house...
The Waterbury Republican paper also says that Naugatuck approved a tax freeze for their seniors from 7-1-2007 to 6-30-2010 at which time it will be revisited. The freeze guidelines are: Seniors 70 and older who have less than $33,900 of income a year and less than $125,000 in assets, not including the value of their respective homes, are eligible for the freeze. The mayor of Naugatuck says they will lose $86,808 the first year, but it won't be a shift of taxes to others as they expect their grand list will increase w/new businesses, an acct. of all taxable real estate, motor vehicles and personal property which will make up the difference.
breach... "self certification... with ability to check for fraud."
Would there be a significant administrative cost involved?
And do most people know how much they are worth in assets... 401k, IRA, bank accounts, house, collectibles, car, etc. I'm curious on both the administrative side and on the taxpayer side.
I'm just looking for thoughts on how this would work. I'm really not sure.
My guess is that they would have to sign a document self certifying that they are within the guidelines and something that would allow the town to verify info if needed...I dont see how else it could be done...kind of like applying for state aid?...if they are applying for tax freeze, they will have to find out how much they are worth..its easy enough...sometimes I get the feeling that the Town Council is going to roll over on this because the seniors bring alot of votes...
You cannot include an asset based test. It takes about a million dollars to generate an annual income of $50,000. Most people don't have million dollar IRA's, but even an IRA with an asset value of $500,000 will only generate about $25,000/year in income. So someone could easily have $700,000 in assets on paper. Only counts if you die.
ANON 9:07PM::::YOU NEED AN ASSET TEST...THATS WHY OTHER TOWNS ARE DOING IT...IT COUNTS WHEN YOU DIE FOR SURE, BUT IT WILL ALSO COUNT WHEN APPLYING FOR ASSISTANCE/WELFARE...WHATEVER YOU WANT TO CALL IT...DO YOU THINK YOU CAN OWN A SUMMER HOME IN FLORIDA, A SKI HOUSE IN NEW HAMPSHIRE AND STILL BE ABLE TO QUALIFY FOR ASSISTANCE?...THERE ARE SUCH THINGS AS NON INCOME GENERATING ASSETS...
Any tax relief for citizens should first be based on income. A family of 4 and a senior couple of two that each have an income of $40,000 have the same basic problem, not enough disposibl income to live in this Town. In fact, the family of four with school age children are in gretaer dire straits then the retired couple.
Tax relief should be based on income, assets have little to do with it. granted assets can generate income, but income is the key.
Additionally, any property tax reform should have a limit on taxes paid, as an exampe, totalt property taxes should not exceed 7% of gross income.
The other side of the coin is we need to have elected Town Council members who really want to minimize spending. One way to reduce or minimize the increase in taxes is to minimize spending.
Any tax relief for citizens should first be based on income. A family of 4 and a senior couple of two that each have an income of $40,000 have the same basic problem, not enough disposibl income to live in this Town. In fact, the family of four with school age children are in gretaer dire straits then the retired couple.
Tax relief should be based on income, assets have little to do with it. granted assets can generate income, but income is the key.
Additionally, any property tax reform should have a limit on taxes paid, as an exampe, totalt property taxes should not exceed 7% of gross income.
The other side of the coin is we need to have elected Town Council members who really want to minimize spending. One way to reduce or minimize the increase in taxes is to minimize spending.
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