Ernest R. Hudziec: Gilmanton should value the years its elderly have given us

To The Daily Sun,

Elderly Tax Exemption is no exemption from property taxes. Rather, it’s tax relief. Unfortunately it has been designed by the state laws to severely limit the number of people that can be eligible for it. All assets except a person’s home are counted. All income no matter the source is counted. If you are fortunate enough to have a defined retirement benefit (pension), that income is included, but not the assets of the pension fund that provides that income. If an IRA or 401K funds your retirement, then those assets are counted for your eligibility. The requirements for the elderly exemption are out of whack for this age. The only recourse is either change in the state law or by local action.

Gilmanton is not the only town that has taken local action. My friends in Brookline, NH, told me of a similar warrant article that increased eligibility requirements that passed in 2018 at their town meeting after debate. I’m sure other towns will follow suit if state action is not taken.

Tax relief is always a two-edge sword. It helps some more than others. In this case, an elderly couple could afford to stay in town. If not, that home would be sold to a young couple with children. We all know that would have an impact on school taxes. The current tax exemption can also have an impact on attracting +55 housing. Remember, you have to live in Gilmanton for five years to be eligible, so the increased taxes of such a development would help offset any later elderly exemption.

The current exemption as voted on last year allows $100,000 of reduction in home valuation for ages 65 to 74, then increasing to $ 175,000 for ages 75-79, then increasing to $ 250,000 for ages over 80. Many people after seeing the application would find it too intrusive to apply UNLESS there is a NEED.  

This past year the current exemption cost the town a nickel. The veterans’ tax credit probably cost more. We value the service a veteran gives. Can we value the service a citizen provides a town for 30, 40, 50 or more years in their later years?

VOTE NO on Article 15 on March 9

Ernest R. Hudziec

Gilmanton