L&O met in City Council chambers on Monday, where the sub-committee meeting was televised on Channel 15.
WESTFIELD – A motion from Councilors Ralph J. Figy and Cindy C. Harris, first raised a year ago to examine the real estate tax exemptions for seniors was held in committee at Monday’s Legislative & Ordinance Committee meeting at Figy’s request, in order to first look at tax deferments being offered by the City of Westfield to eligible residents 65 and older.
Figy, who chairs L&O, had requested Assessor Robin Johnson and Treasurer Meghan Kane to come to the meeting to discuss the tax deferments, first raised in a motion in 2017 by Councilors Stephen Dondley and Brent B. Bean, II, who asked to phase in a higher qualifying income than $20,000 a year to qualify residents.
Kane said the tax deferral can defer payment of real estate taxes until the sale of a home or death of the owner, at which time the taxes due are charged 8% interest. If the city is not paid, the amount due reverts to a 16% interest rate, and must be paid within six months, or be foreclosed on.
“My understanding is you can change that 8% interest,” Figy said.
Johnson said a person has to be 65, an owner solely or jointly, in which case an individual can only defer his or her share. She said currently gross income can’t surpass $20,000, but that can be increased to the Circuit Breaker amount, which she said is around $55,000.
“I think some people don’t realize there is an interest rate associated with it,” Kane said.
Johnson agreed, saying when the Council brought it up last year, nobody applied. “When we said lien, nobody wanted it,” she said.
Figy asked if they thought the $20,000 income limit was a deterrent. Kane said even qualified individuals may not want the lien, which they have only six months to pay.
Figy also asked if there was an ability on the part of the city to forestall the foreclosure in a messy probate or contested will.
“We don’t have a lot of experience with it,” Kane said, adding they have only had four people apply in the last fifteen years.
Ward 6 Councilor William Onyski, who is a member of L&O, noted there were three parts to consider in the motion; the lien, the percentage of interest to pay, and the income bracket. He said the City Council could change the percentage and the income limit.
“As a Ward Councilor with a lot of seniors, we want seniors to stay in their homes as long as possible,” said Figy, who represents Ward 2.
Kane said the Department of Revenue has most of the information on the qualifications and the background of the law.
“Before we do anything, we should move it in slow increments, like from $20,000 to $30,000,” Onyski said, adding that he didn’t think the percentage was stopping anyone.
Figy said he thinks the lien is the real deterrent, because a lot of seniors want to leave their property to their children. “My thought is to increase the income and lower the percentage increase,” he said. Onyski then made a motion to leave the item in committee for further study, which was voted 3-0.
