Thiele Introduces Legislative Package to Update the Senior Citizen Property Tax Exemption
Bills would allow local governments to increase the income levels for the senior exemption from $29,000 to $50,000 and fully exempt seniors over 70 years old from school taxes
Assemblyman Fred W. Thiele, Jr. this week has introduced State legislation to update and reform the Senior Citizens Property Tax Exemption. Under current law a local government may grant the exemption by resolution or local law. The local governments and school districts set the income level for the exemption, subject to a State income maximum. Under current law, the maximum income levels are as follows with the level of exemption:
ANNUAL INCOME
| % OF ASSESSMENT EXEMPT
|
$29,000 or less
| 50%
|
>$29,000 but < $30,000
| 45%
|
>$30,000 but < $31,000
| 40%
|
>$31,000 but < $32,000
| 35%
|
>$32,000 but < $32,900
| 30%
|
>$32,900 but < $33,800
| 25%
|
>$33,800 but < $34,700
| 20%
|
>$34,700 but < $35,600
| 15%
|
| >$35,600 but < $36,500
| 10%
|
The combined income of the owners is utilized to determine eligibility. Thiele stated, “The income eligibility level has not been increased in seven years. The maximum income of $29,000 for the full 50% exemption and the maximum income level of $36,500 are extremely low for areas of the State that have a high cost of living. Fewer and fewer seniors are eligible to qualify.”
Thiele’s first proposal would increase the income eligibility level for seniors from $29,000 to $50,000 in “high appreciation municipalities”. Under current law, those areas include Long Island, New York City and the Hudson Valley. Under the legislation, the income levels would be increased as follows:
ANNUAL INCOME
| % OF ASSESSMENT EXEMPT
|
$50,000 or less
| 50%
|
>$50,000 but < $51,000
| 45%
|
| >$51,000 but < $52,000
| 40%
|
>$52,000 but < $53,000
| 35%
|
>$53,000 but < $53,900
| 30%
|
>$53,900 but < $54,800
| 25%
|
>$54,800 but < $55,700
| 20%
|
>$55,700 but < $56,600
| 15%
|
| >$56,600 but < $57,500
| 10%
|
Thiele explained, “Under the State STAR program, the maximum income level for the enhanced STAR benefit for senior citizens is $84,550. It is long overdue that we increase the income eligibility for the senior citizen property tax exemption beyond $29,000.”
Thiele again emphasized that the changes he is proposing is not a State mandate but would be at local option.
Thiele’s second proposal would increase the senior citizen property tax exemption from 50% to 100% for those meeting the income requirement of $50,000, for those over the age of 70, who have lived in the same school district for at least 10 years, and whose household has no children attending school in the district.
Thiele stated, “Senior citizens on fixed incomes find it harder and harder to keep up with increasing school taxes as they get older. In those cases where long-time local residents have carried their share of the tax burden for many years, they should be eligible for an additional exemption. Again, this would be a local option, not a mandate.”