WESTFIELD – The Legislative & Ordinance Committee (LEO) recommended to the City Council Thursday following a 3-0 vote that the local option for tax deferments for seniors (65 and older) be adjusted to more realistic terms. Currently, the gross household limit for deferring real estate taxes is $20,000, and the interest rate on deferments is 8%. L&O recommended moving the limit to $30,000, and lowering the interest rate to 6%. By the end of the meeting, however, due to a push by one councilor; the household limit to be eligible for the program was raised to $55,000.
Ward 2 Councilor Ralph J. Figy (WNG File Photo)
During the discussion on the original proposal by L&O, Ward 3 Councilor Andrew K. Surprise asked whether the age is set by state law. Ward 2 Councilor Ralph J. Figy, who chairs L&O, responded that the state sets caps with 65 the minimum age, $56,000 maximum income limit and 0% the minimum interest. “We didn’t want a drastic jump,” Figy said. Currently, only three households participate in the program.
Ward 1 Councilor Mary Ann Babinski said there has been some confusion about the program. She said one resident asked if this program will replace other abatements for seniors. Figy said it does not.
At-large Councilor Dan Allie also said that seniors can decide if they want to defer all of their taxes due, or pay some and defer some. “You can split it up by agreement with the assessor,” Allie said.
Ward 5 Councilor Robert A. Paul, Sr. said he is in agreement with the program, but said the household limit is still too low. He said seniors with a higher fixed income still have to make social security payments to Medicare A&B and pay state taxes. “We have an opportunity to push it right to $55,000. We need to push it right up to $55,000,” Paul said.
Ward 5 Councilor Robert A. Paul, Sr. (WNG File Photo)
At-large Councilor Brent B. Bean, II, who originally introduced the motion in 2017 with then At-large Councilor Stephen Dondley, said at the time the number hadn’t been changed “in quite some time.”
“I agree the number is not high enough. I would like to see if we could re-look at it next year, and move the number,” Bean said.
L&O member and Ward 6 Councilor William Onyski said that Councilor Paul’s suggestion was brought up in L&O. “We decided to stick with that figure ($30,000), with the knowledge that we could move it up in the near future,” Onyski said.
Surprise said he didn’t disagree, because someone would have to be in dire straits to qualify. “What we really ought to look at is an increase in the tax abatement work offs,” Surprise said, which he said would also help city departments with volunteers.
Allie said he agreed with Paul that the number is too low, and one of the reasons only three people participate. “I think the number needs to be higher, at $35,000 or $40,000,” Allie said.
“L&O has done a great job. But, for most of the people, waiting another year is the strong thing,” Paul said, and made a motion to amend the household limit to $55,000.
During the discussion on the amendment, Onyski said he didn’t think it was a bad idea, but he didn’t like bringing it up at this point. “We have committee meetings. This has been around for months. I would rather see it sent back to committee, where it was vetted,” he said.
Bean agreed with Onyski. He said one of the reasons people don’t take advantage of the program is the city doesn’t advertise it. “The number is clearly too low,” Bean said, but asked whether the move was financially sound.
Figy said they had a meeting on the tax deferment change in March and two more in May. He said they also worked with the Finance Department. “I plan to look at it again next year,” Figy said.
The motion to amend the figure to $55,000 passed. Figy then read the ordinance as amended, with $55,000 gross receipts and 6% interest rate on the deferment. The motion as amended passed unanimously.
