Memo for fiscal year 2020, updated 2019-03-14

[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?


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)


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:

BM 16 - Object 1

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.

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