Increased elderly exemptions would keep Northfield seniors in their homes

NORTHFIELD — Assistant Town Administrator-Finance Director Stephanie Giovannucci is proposing increased elderly property tax exemptions for income-eligible senior citizens to keep their tax bills close to what they are paying now in the face of escalating property values.

Giovannucci told the selectboard on Jan. 17 that she examined the effect of the new property values on those currently qualifying for the elderly exemption. She then calculated how much of an increase in the elderly exemption it would take to prevent those on fixed incomes from seeing huge increases in what they will have to pay in taxes.

“I found that the taxes that we collected [from those with the elderly exemption] prior to the new assessments was about $83,500. ... And when we got our new assessments and our new tax rate, it went to $161,661, so it pretty much doubled in what we were collecting. So I did the calculation to bring it down to about $84,514 ... about $1,000 difference — still an increase — but it brings everybody back to where they were at before the assessed values were raised,” Giovannucci said.

The proposed increases in the exemption for those between the ages of 65 and 74 would double from $75,000 now to $150,000 under the proposal; 75-79 would more than double, from $80,000 to $162,000; and 80 and up would increase from $115,000 to $205,000. Because of the larger numbers involved, the oldest residents would see a smaller percentage increase in the exemption, but it would result in a reduction of about $500 in the tax bill, Giovannucci explained. The 65-74 exemption would result in about a $100 increase in the tax bill, and those 75-80 would see about a $500 increase in their tax bills.

“I can tell you I’ve had at least two people that went without fuel to pay their tax bill, and one that put off getting their prescription,” Giovannucci said. When she suggested they get onto a payment plan, they responded, “No, no, no, I’ve gotta get this off my plate,” she said. “I’ll just run space heaters or something.”

Mark Hubbell, selectboard chair, pointed out that those on Social Security will be getting an 8.9% cost-of-living increase. Of the exemptions, he said, “I’m not against increasing them, guys, but I’m not big on doubling them, because even though our evaluations did all double, our tax rate also dropped, ... and every penny we give out in exemptions or credits, somebody else is paying for one way or another.”

He did not like that the home values could double, yet the exemptions would mean that those with the elderly exemptions would be paying no more in taxes.

Hubbell also said it is wrong for some elderly exemptions to double while those for the oldest residents would not be doubling.

The other two selectboard members supported the change as presented, with Jason Durgin saying that those on fixed incomes have no way to come up with additional money for taxes.

“I’m thrilled that my value is way up, and I’ll happily pay $600 more a year for my taxes because my house is worth so much more now. That’s me,” Durgin said.

For those on fixed incomes, however, “Where am I going to come up with this money? I don’t have that money,” he said.

Kevin Waldron said, if they needed to make up the roughly $80,000 difference in property tax revenue, “I can tell you with a 100% guarantee that I can find 80 grand in this budget in more than one place. I don’t think this is the place to find it.”

The town also is looking to increase the exemption for the disabled, and there is a petitioned warrant article that would increase the “standard” and “optional” tax credits for veterans.

Elsewhere

The city of Franklin also is looking at increasing property tax exemptions and will hold public hearings on the proposals Feb. 6.

The agenda calls for a hearing on an optional veterans’ tax credit of $300, and another hearing on three elderly exemption levels. The exemption for those between 65 and 75 years of age would increase from $46,000 to $76,600 under the proposal; those between 75 and 80 would increase from $69,700 to $116,100; and for those 80 and older, from $160,300 to $267,000 of assessed valuation.

City Manager Judie Milner said the city is in the middle of a revaluation, but so far property values appear to be running 50% higher than the current assessments.

“Most of our elderly will see a tax bill at the end of 2023 if we don’t make this adjustment,” Milner said.