WESTFIELD – City assessor Robin Johnson attended the Legislative & Ordinance Committee on Tuesday, to discuss the motion by chair Ralph Figy and At-large Councilor Cindy Harris to examine the real estate tax exemption allowed for those over 65 years of age with the intent of increasing that exemption.
Figy said the motion has been sitting in committee since January, and he thought it was time to bring it forward for discussion. “It’s not going to be an easy thing,” Figy said in opening the discussion. He said his vision was to consider whether once a homeowner reaches 65 and is of a certain income, to keep the taxes frozen.
“I don’t think it’s going to get done. I don’t think it’s legal,” said Johnson.
Assessor Robin Johnson and First Assistant City Solicitor Shanna R. Reed. (Photo by Amy Porter)
Assistant city solicitor Shanna R. Reed said the matter could possibly be done by a home-rule petition, but in her opinion the state might look negatively on the city for freezing taxes. She said there are local options, including increasing certain exemption amounts or decreasing qualifying ages. “There are local options where you can benefit seniors using those tools,” Reed said.
Johnson said there are personal exemptions allowed for the blind, veterans with a service-connected disability, surviving spouse, minor child of deceased parent, and seniors age 70 and older. She said the exemptions are listed on the assessor’s page of the city’s website, www.cityofwestfield.org.
L&O member Mary O’Connell asked whether the rules on exemptions were the same for seniors, veterans and blind people. Johnson said each category has different rules. Seniors would have had to be 70 by June 30, to qualify for an exemption for the following tax year. The income eligibility for the elderly single is $20,000 annually and $30,000 for a married couple.
“We know they’re having a hard time. You can try to get the amount up,” Johnson said. She said the cost of living amount (COLA) could be used to raise the exemption amount.
Johnson said another option for seniors is a 41A tax deferral, which is a lien that goes against their property. The senior must have residency in Massachusetts for ten years, and own the home for five years to qualify. A property tax deferral defers payment of their property tax as a lien until the senior sells the property or passes away. Interest on deferred taxes accrues at 8%.
“Mostly, this is for people who need it. We have two people on it right now, and one who passed away,” Johnson said. She said there may be a way to change the interest amount.
L&O member William Onyski asked if there is a processing fee to put the lien on a house. Johnson said the fee is $75, which would come out of the proceeds when it’s sold.
Figy asked if the income threshold were raised from $20,000 to $40,000, whether there would be more of a response or less of a response. Johnson said more people would be eligible. Onyski said he would like to have census information on the number of eligible people at $40,000 or less.
At-large Councilor Stephen Dondley, who was in attendance at the meeting, suggested looking at the tax impact of other communities that have already raised the cap. Dondley also said that he has a motion on the City Council agenda for Thursday to raise the qualifying income level for seniors for the 41A tax deferment. He said he recognized that it is already being discussed in sub-committee. Figy said he would make a motion on the floor to bring Dondley’s motion in with his.
Johnson said the city did raise the senior exemption to $750. She said right now there are 108 people with incomes under $20,000.
Figy moved to keep the item in committee for further consideration.
