A Real Tax Break Coming for Senior Citizens: What are the Details?

[The following information was provided to me by the office of the Superintendent of Schools, Newton County School System.]

Senior Citizen Tax Exemption Information

Process and History:
A request was made by the members of the Board of Education to determine if a change in the current senior citizen exemption would be possible.

In August 2022, school system administration contracted with a 3rd party vendor who worked with the tax assessor to develop three possible changes to the current senior citizen tax exemption. The study was complete at the end of November 2022. A presentation was shared with the members of the Board of Education in December 2022; the board voted to increase the senior citizen exemption via a resolution.

The resolution was provided to our legislative delegates, and Senator Tanya Anderson and Senator Brian Strickland shepherded the legislation through the approval process. Once approved by the Senate and the House, the legislation was subsequently signed by Governor Brian Kemp. This signature allows for the legislation to be considered by registered Newton County voters via a November 2023 ballot question.

There will be a special election in November (2023) and the question regarding the approved senior citizen exemption will appear on the ballot. If approved by Newton County registered voters, the exemption will begin in January 2024.

(In the meantime, senior citizens concerned about current property tax assessments should reach out to the Newton County Tax Assessors Office for more information or to file an appeal.)

EXEMPTION INFORMATION AND DETAILS
Current Exemption: L4 Senior Exemption

• Age 65+

• Income-based: Taxable income of no more than $25,000 (This does not include retirement income of up to approximately $75,000.)

• Taxed on assessed value minus $30,000.

• Fully exempt if property value is $75,000 or less.

• Any senior who meets the income and age thresholds whose assessed property value is more than $75,000 receives a $30,000 reduction in assessed value.

For Example:
Current Senior Property Owner 1:
Meets income and age thresholds.
Assessed property value is $68,900.

This Senior is fully exempt from school tax because he/she meets the age and income requirements, and the property assessment is less than $75,000.

Senior Property Owner 2:
Meets income and age thresholds.
Assessed property value is $98,500.

This Senior will pay school taxes; however, because he/she meets both income and age requirements he/she benefits from the $30,000 exemption. This individual will pay taxes on $68,500 rather than the $98,500. This senior meets age and income requirements, but is not fully exempt as the property value exceeds $75,000. However, this individual still receives a reduction in school tax as he/she is taxed on a reduced property assessment (the reduction is the $30,000.)

NOVEMBER 2023 SENIOR EXEMPTION ON BALLOT
Senior Exemption Approved for the November 2023 Election

• Age: 65+

• Income threshold same as previous L4 Exemption: Taxable income of up to $25,000 which does not include retirement income of approximately $75,000.

• Exemption if income and age thresholds are met: $50,000. (Taxed on assessed value minus $50,000.)

• Assessed Property Value=$125,000

For Example:
Senior Property Owner 1:
Meets income and age thresholds.
Assessed property value is $124,789.

This Senior is fully exempt from school tax because he/she meets both the age and income requirements and has an assessed property value of less than $125,000.

Senior Property Owner 2:
Meets income and age thresholds.
Assessed property value is $140,000.
Exemption: $50,000

This Senior will pay school taxes based upon the $50,000 reduction. This individual will pay taxes on $90,000 rather than the $140,000 assessed property value. This senior is not fully exempt because the assessed property value exceeds $125,000.

An individual who meets both income and age thresholds whose assessed property value exceeds $125,000 will still receive the exemption of $50,000 (which reduces the assessed value thereby reducing taxes.)