Translate[Archived] Question #16: Update FY19 Budget Question 40 - Provide the expenditure savings of capping the elderly/disabled real estate tax abatement program and a deferral program option for eligible homeowners?
Question:
Can you provide an update of FY19 Budget Question 40 "Provide the expenditure savings of capping the elderly/disabled real estate tax abatement program at valuations of $1 million and a deferral program alternative for eligible homeowners”? Please include a projected breakdown of the $4 million budgeted for the tax relief programs current and proposed. (Mayor Wilson)
Response:
Based on Tax Year 2018 data, the Elderly and Disabled Tax Relief Program had eight participants owning real estate assessed at more than $1 million (ranging from $1.01 M to $1.43 M). Based on the gross income of these property owners, five received 100% relief; two received 50%; and one received 25%. The average gross income for these owners is $44,750 (ranging from $31,300 to $69,200). The average net assets are $182,000 (although three report less than $10,000).
The total amount of taxes relieved for these eight properties amounts to approximately $79,600. If the program were amended to create a $1 million assessment ceiling, with the balance of taxes over that amount being eligible for deferral, the amount of actual tax relief would drop to approximately $69,000. The difference of $10,600 would be eligible for deferral. Based on 2018 data, the amount of potential deferral would range from a low of $141 to a high of $4,336 per year.
The following chart provides the distribution of property values in the 2018 Tax Relief Program:
Of the $4.0 million estimated for tax relief and tax exemptions, approximately $2.91 M represents tax relief for the Elderly and Disabled; and approximately $1.09 M represents tax exemptions for disabled military veterans.