Senior Homestead Exemption on the BOE Agenda
A Senior Citizen homestead exemption is a complicated and tangled beast. Citizens over the age of 65 have paid their fair share of “the school tax” and should begin to see a break on their property taxes at some point. That’s my stance. But, my goodness, it is tough to get there. [I wrote a lengthly post recently describing some of the difficulties. Please read that first.] However, here we stand on the precipice of decision. On Tuesday, December 13, 2022, the Board of Education will vote on one of three options to decrease property taxes on senior citizens.
Click the link above to see the last BOE Work Session where we were presented with the three options for consideration. (See the chart below to follow along with the presentation and questions). Here’s a breakdown of the video:
0:00 - Opening, Pledge, Awards, Updates
16:00 - Senior Citizen Homestead Exemption presentation by EducationPlanners, LLC
30:21 - questions from the Board
33:36 - my question regarding the number of Senior Citizens this exemption will effect
43:16 - Superintendent’s remarks
52:33 - my question about the inequity of any registered voter (majority) making a decision that only effects property owners (minority); highlighting the continued need for ESPLOST where ALL purchasers (including tourists) are equally taxed
55:06 - my comment that our constituents have been asking for a tax break for a long time
57:03 - my comment about the fact that an increase in property value does NOT help a Senior Citizen on a fixed income, it only increases the amount they pay in taxes
58:06 - my plea to the Board to “get something in writing” in regards to a policy that forces the Superintendent to reevaluate Senior Citizen Homestead Exemption every two years
59:55 - a discussion about what really is a “loss of revenue” vs a redistribution OR a non-loss of revenue due to an increase in the overall tax digest that balances the exemption (I feel like this point is undervalued and ignored which leads us to Uber-conservative options)
1:11:42 - my disdain that the total number of Senior Citizens effected by the exemption did not increase, only the amount of exemption for a few Seniors
In short, the recommendation from the Superintendent will be Option #1 or Option #2 on Tuesday evening.
Age of eligibility will remain at 65
Income eligibility will remain the same
less than $25,000/year taxable income (but can include up to $75,552 in additional social security, pensions, or retirement income)
An increase in the property value maximum from $75,000 to $100,000 (Option #1) or $125,000 (Option #2)
In Option #1, the number of Senior Citizens who would qualify for 100% exemption would increase from 224 currently, to 595. In Option #2 the increase would be from 224 to 974.
As I said at the meeting, this is unsatisfactory to me. I am a fiscal conservative, but I also believe that if we only look at the absolute “certain” data, then we will never move the needle. There must be a small risk we are willing to take to relieve the tax burden on our Senior Citizens without endangering the quality of education for our kids.
In the least, I will advocate for Option #3 which doubles the Fair Market Value (FMV) allowed which will affect the most people and increase the total exemptions to 1,416 Senior Citizens, six times the current amount. And all 5,444 who are currently receiving a $30,000 reduction in FMV will receive a $60,000 reduction. Every dollar helps.
I know this is a controversial subject. And I realize it is a tangled and complicated situation (see more on that here). But we must do something.
I welcome your thoughts. Please share this post on your social media and via email. As much information I can get from you, the better. Click the envelope icon at the top of this post and send me an email. And make your presence known. Show up at the BOE meeting and share your concerns in person. Tuesday December 13 at 7:00pm at the Newton County Board of Education on Newton Drive.
