NORWICH – A proposed local law to exempt a percentage of property taxes for seniors living in the City of Norwich is being considered by members of the city council and, pending a public hearing, is expected to pass.
Last month, city official received a proposal to amend a currently existing city ordinance that allows for partial exemption of certain real property owned by residents who are 65 years of age and older. Changes to the ordinance, permitted by the New York State Department of Taxation and Finance, would raise income eligibility for the first time in over two decades for seniors to qualify for a property tax exemption.
A public hearing for the amendment is scheduled for 7 p.m., Nov. 19 at One City Plaza.
The ordinance to provide seniors a partial property tax exemption was first adopted by the city in 1967. But eligibility guidelines have been amended 11 times since, most recently in 1990.
The newly proposed amendment calls for a 50 percent exemption for seniors who receive $11,000 or less annual income (an increase from the existing $9,200 benchmark to qualify for the same exemption). Seniors earning between $11,000 and $11,999 will receive a 45 percent exemption; seniors earning $12,000-$12,999, a 40 percent exemption; $13,000-$13,999, a 35 percent exemption; $14,000-$14,900, a 30 percent exemption; $14,901-$15,800, a 25 percent exemption; and $15,801-$16,700, a 20 percent exemption.
The ordinance also determines income to include social security, retirement benefits, interest dividends, net rentals, salary earning, and income from self-employment. Income will not include supplemental security income, welfare payments, gifts or inheritance.
For property’s where the title is vested in both a husband and a wife, combined income will determine eligibility.
According to city officials, the proposed amendment would be a helpful measure in providing assistance to the city’s aging population, many of whom rely on Social Security and other public benefits. Said Norwich City Mayor Joseph Maiurano, the option to provide seniors with a partial exemption is a necessary effort to ensure many seniors can continue living in their home.
“A lot of seniors have built their home here and many have worked in places like the old Norwich Shoe Factory and other companies where there weren’t good retirement options available for them,” said Maiurano. “This is a good way we can help those people who are not receiving much through Social Security and who might be struggling just to keep their home.”
Alterations to the ordinance would make more than 70 parcels in the city eligible for a partial tax exemption, according to City Finance Director Bill Roberts. Moreover, he clarified that providing a partial exemption does not impact the city’s overall budget as the amount exempted in property taxes is compensated by nominal charges distributed all over the city.
City legislators will vote on the proposal following the public hearing on Nov. 19.