Tax relief ordinance heading back to a hearing

0
37

PROSPECT — Officials will go back before the public with a proposal to revise a local property tax relief ordinance that has been slightly tweaked since a hearing in September.

A public hearing on the proposed draft ordinance is scheduled for Tuesday at 6:30 p.m. at the firehouse, 26 New Haven Road.

The ordinance, which provides a local tax credit for eligible senior citizens and totally disabled homeowners, was adopted in 2004. Under the current language, residents that are at least 65 years old or receive permanent total disability benefits under Social Security, own property in town and meet income limits of $35,200 a year for a single person and $42,900 for a married couple — income restrictions used by the state tax relief program — can apply for a property tax credit of up to $200.

The credit is prorated based on how long a resident has lived in town. Eligible residents who have lived in town for one to five years receive 50 percent of the credit. The credit increases to 75 percent for those who have lived in town for six to 10 years. Eligible residents that have lived in town for more than 10 years receive the full $200.

The council’s ordinance subcommittee reviewed the ordinance and presented changes at a hearing in September. The changes presented at the time increased the amount of the credit to up to $400 and upped the income limits to 1.5 times the state’s limits.

The changes also revised the residency requirements and prorated share to break residents into four groups: those that lived in Prospect for one to five years, six to 10 years, 11 to 20 years, and 21 years or more.

About 100 people turned out for the hearing in September, the majority of which were opposed to the changes. Those opposed felt the changes don’t do enough and were unfair to people who recently moved into town. They wanted no residency requirements and higher income limits.

The Town Council tabled action on the revised ordinance at the time so the subcommittee could review the matter further. Last week, the council approved sending the new draft ordinance, which made only a change to the residency requirements, to another hearing.

The new proposal breaks residents into two groups, those that have lived in town one to five years and those who have been residents for six or more years. Under the proposal, the first group would receive 50 percent of the credit, or $200, while the latter group would receive the full $400 credit.

The council could take action on the ordinance during its meeting following the hearing.