Approved Minutes - October 10, 2008
Members Present: T. Graveline, C. Graveline, S. Pilat, T. Galvin
Members Absent: None
Guests: V. Leone, D. Lauber
The Ordinance Sub-Committee of the Prospect Town Council will met to discuss the following topics. The meeting started with the Pledge of Allegiance at 9:38 am.
1. Minutes from the September 26th meeting were reviewed and approved.
2. No decisions were made with respect to potential changes to the assessing / collecting taxes for veterans but there was considerable discussion regarding the following:
• Vin and Diane had put together a worksheet showing various ‘Veteran Related Assessment Adjustments’ for the last three (3) tax years.
• The detail showed five (5) categories, of which three (3) were material to our discussions.
• The first and largest indicates that there are on average about 650 tax accounts where qualifying (DD214) veterans get up to a $4,000 reduction in their assessments and which based on our prevailing mill rate reduces their taxes by approximately $70k per year. It was noted that this amount is ‘shifted’ to all other taxpayers, and costs the typical household about $25.00 per year. This [up to] $4,000 assessment is not based on income, and there is no state payment to the town to make up the difference.
• The second category reflects an ‘Up to $2,000’ additional assessment reduction, is based on an income test, and the resulting approximately $19,000 annual tax payment reduction is refunded to Prospect by the state.
• The third category is essentially the same as the second, except there is no income test, the annual tax payment reduction is in the area of $30k, and there is no offset payment from the state.
• As some towns are providing up to $10,000 in total possible assessment reductions for qualifying veterans and Prospect’s current approach tops out at $6,000, the discussion focused on possibly expanding the first category from ‘a maximum of’ $4,000 to a maximum [assessment reduction] of $8,000. It was anticipated that this would double the current $70k tax redistribution to $140k, or from approximately $25 per household to about $50.
• T’ Galvin will develop worksheets and the numbers will continue to be reviewed before any recommendations for changes are made.
3. No decisions were made with respect to potential changes to the assessing / collecting taxes for seniors but there was considerable discussion regarding the following:
• We again spoke to changes that could include reduction in either assessments or actual tax billing amounts. Such relief could be the result of tests including length of residence, household income or both. In any event, ‘Senior’ would be defined as those reaching the age of 65.
4. We agreed that our next meeting will be on Friday, October 24, 2008 at 9:30 am in Town Hall. The meeting was adjourned at 11:05 am.