Article calls for 25 percent property tax break
Published on March 26th, 2003
STONEHAM, MA - Amid the spiraling speculation of overrides and layoffs resulting from the Stoneham FY04 budget, a lions share of the debate has centered on Stoneham senior town members that typically live on a fixed income. Many, such as always-outspoken citizen John DeGeorge, are concerned that seniors don't have enough stashed away as it is, and can't possibly afford to meet the higher tax bill a debt exclusion override would demand,
With that in mind, DeGeorge has placed Article Seven on the Town Warrant for Annual Town Meeting on May 5. The Article calls for a petition to the legislature that would, in effect, allow Stoneham citizens over 70 years, or those with a proven disability, to pay only 75 percent of their calculated real estate tax.
"I know a lot of seniors who are really sweating and they're legitimately afraid of losing their homes," said DeGeorge. "People on a fixed income are having enough of a hard time in affording day-to-day life, and I think it's time to lighten their burden."
"I think if we're already talking about going into debt, then we might as well pile a little more debt on there," said DeGeorge, alluding to talk of a possible debt exclusion override.
DeGeorge made a presentation to the Board of Selectmen just prior to their presentation of an endorsed balanced budget that doesn't include an override, but does include an approximately $1 million raid of the stabilization fund and an additional $82,000 in revenue for cellular device rental or lease by both the school and the town.
"The FY04 budget is going to be balanced, and we will not be in debt to balance it," said Selectman Mary Pecoraro.
According to DeGeorge's estimates, there were approximately 3500 Stoneham residents that had the distinguishment of being over 70 years of age. DeGeorge further reasoned that about half of that number probably didn't own property in the town, and wouldn't qualify for the tax break. DeGeorge gave the example of a $3,000 tax bill, and the resulting savings of between $700-800 for the senior citizens, but most every Selectmen wanted to see more concrete numbers.
"If I do a quick bit of math and give that kind of discount to approximately 1700 seniors, I'm calculating that we'd need to come up with another $1.36 million for FY04," said Pecoraro. "I agree that the senior citizens need some sort of break, but what we're talking about is a million dollars."
DeGeorge said that the final figures were still being tabulated, but that his estimations put the reduction under $1 million.
"I really didn't want to speculate and throw out numbers right now," said DeGeorge. "I also want to let everyone know that I don't qualify for a few years yet, so I'm not banging the drum for myself."
Further complicating the tax reduction/exemption imbroglio is Article Nine sponsored by the Board of Assessors. The article calls for a $500 raise in exemption for property-owning seniors in a low income bracket.
According to the article description, the Senior Citizen exemption would lower the eligibility age from 70 to 65, would increase the amount of tax exemption from $500 to $1000, and would also would nearly double the limits for gross receipts and whole estate limits.
"This only passed last October, so it's the first opportunity to bring it to Town Meeting," said Town Assessor Elaine Moore. "Otherwise we would have brought it along sooner."
Moore also added that their exemptions would be afforded through the surplus overlay, and wouldn't balancing in the general fund.
"I don't know of any other town that has adopted anything like Article Eight," said Moore.
DeGeorge thought that both measures could co-exist, and that Article Nine was steered more toward very low income seniors.
"If seniors qualified for that then great, but this would be an option for the rest of the seniors struggling to make ends meet," said DeGeorge.
Selectman Charlie Smith suggested that DeGeorge piggyback his article during a Town Meeting when an override was being discussed as an option.
"I can see this being brought up if we were raising taxes, but an override is not an option we're looking at this year," said Smith.
The Board of Selectmen agreed they wanted to see more solid numbers before voting on a decision on whether or not to recommend Article Eight.
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