Residents Approve Elderly Tax Relief in Deep River, Connecticut

DEEP RIVER - Those aged 65 and older who have lived in Deep River for at least five years are now eligible for additional tax relief thanks to a newly passed ordinance.

First Selectman Dick Smith said that for the past year and a half he and Tax Assessor Robin O'Laughlin have looked at the advantages and disadvantages of providing additional tax relief for the elderly.

Smith said several surrounding towns already have programs in place.

A committee was then established aimed to create an ordinance and they worked closely with Town Attorney Jane Marsh, Smith, and O'Laughlin.

The committee concluded that those who make less than $36,500 annually should receive a tax credit equal to 50 percent of the amount they receive from the state circuit breaker program.

For example, elderly married couples with an annual income between $20,000 and $25,000 receive $750 in tax credit from the state.

The ordinance allows them to qualify for an additional $375 tax credit creating a total tax credit of $1,125.

An individual receiving the same annual income receives $500 from the state and the ordinance would allow them to qualify for an additional $250 tax credit creating a total tax credit of $750.

"The state caps at $36,500 while our plan covers up to $45,000," Smith said, adding that both married and unmarried elderly homeowners with an annual income between $36,500 and $45,000 would receive a $125 tax credit.

The decision to have a municipal tax elderly relief to exceed the state maximum income level was made considering the high cost of living in the Deep River area.

"There are seniors that are struggling and we want the seniors to be able to stay here since many have lived here most of their lives," Smith said, adding that it will especially benefit those who have fixed incomes.

Sixty-two elderly residents currently receive tax credits through the state circuit breaker program.

As a result, Smith said that, based on that number, the town's 50 percent circuit breaker match tax credit results in an annual tax loss of $16,000 for the town.

Smith could not predict the number of elderly residents that have annual incomes between $36,500 and $45,000 that would be eligible for the $125 tax credit.

Even if 60 more residents receive the $125 tax credit that would only equate to a loss in town tax revenue of $7,500.

Smith said the ordinance provides a $50,000 tax loss cap and if met would mean each elderly household would receive a smaller tax credit.

Despite snowy weather, Smith estimated that about 39 residents came to the Feb. 12 special town meeting and unanimously voted for the elderly tax refund program.

The ordinance received positive feedback from residents in attendance, Smith said.

While the recently passed ordinance takes affect for the July 2008 tax bill, qualified residents and those with questions are encouraged to visit the Deep River Tax Assessor's Office, Monday through Friday between the hours of 9 a.m. and 12 p.m. and 1 p.m. and 4 p.m., or they can call 860-526-6029.