For Immediate Release
July 1, 2019
COA Board Endorses Mayor’s Senior Tax Relief Proposal
Newburyport, MA – The Board of Directors of the City of Newburyport’s Council on Aging voted unanimously on July 1, 2019 to endorse Mayor Donna Holaday’s Senior Tax Relief Proposal. If approved by the City Council, the proposal would place a question on the November 2019 municipal election ballot asking voters to accept a section of the law that expands property tax relief to a greater number of qualifying senior households over the age of 70.
Newburyport currently offers a tax exemption under “clause 41C” of the state law that provides tax relief to certain qualifying senior homeowners. However, due to restrictive income and asset limits, only 47 senior homeowners qualified in the most recent fiscal year. The Mayor recognizes that there are more senior households in need of relief, and the proposed tax exemption under “clause 41C½” indexes the income limit to the state’s senior circuit breaker program, allowing more senior households to qualify. The City estimates that close to 200 senior homeowners would qualify for this new tax exemption, which would replace the current exemption offered through clause 41C.
In the Mayor’s proposal, qualifying seniors would receive tax relief ranging from $531 to $1,061 annually, based on a state formula. Following adoption, the City Council has the ability to adjust the exemption amount depending on how many homeowners apply and qualify. The City receives a $500 reimbursement from the state for each exemption offered, up to 232 per year. City Assessor Jill Brennan and Finance Director Ethan Manning estimate that the net impact to the City’s budget will be $70,000 per year or 0.098% of the total budget.
“It is very expensive to own a home in Newburyport, despite our taxes being close to the median in Essex County,” said Mayor Holaday. “Between paying taxes, insurance, utilities, maintenance and all other expenses, many households struggle to make ends meet. It is not just seniors who struggle, however the elder population is particularly vulnerable to financial stress given the number of seniors who are on fixed incomes. We want long-time residents to have the opportunity to stay in their homes for as long as they can. This proposal is a tool to help make that happen, and I’m pleased to have the support of the Council on Aging.”
Mayor Holaday submitted her Senior Tax Exemption proposal to the City Council back on March 11, 2019 through Ward Four City Councillor Charles Tontar. The Budget & Finance Committee is expected to review this matter at their next committee meeting on July 8, 2019 at 6:30 p.m. at Newburyport City Hall. If approved by the committee, the matter could come before the full City Council for approval at their next regular meeting on July 15, 2019 at 7:30 p.m.
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City of Newburyport
Senior Tax Exemption Proposal
Frequently Asked Questions
The City Council is reviewing a proposal by Mayor Donna Holaday to adopt a residential tax exemption for qualifying senior homeowners (70+). If approved by the City Council, the question would go before the voters in the November 2019 election. Below are some frequently asked questions to help you learn more about this proposal:
What has been proposed?
An expansion to current property tax relief for qualifying senior households. Only 47 households qualified for an exemption last year due to restrictive income and asset limits; we anticipate close to 200 senior households qualifying for an exemption once the program is expanded by indexing the annual income limit to the state senior circuit breaker.
What is the financial impact for the seniors who qualify?
Based on the current tax rates, qualifying seniors would receive tax relief ranging from $531 to $1,061 annually, based on a state formula. Following adoption, the City Council has the ability to adjust the exemption amount depending on how many homeowners apply and qualify.
What is the financial impact for the City?
The City receives a $500 reimbursement from the state for each exemption offered, up to 232 per year. City Assessor Jill Brennan and Finance Director Ethan Manning estimate that the net impact to the City’s budget will be $70,000 per year or 0.098% of the total budget.
Why is this being proposed?
Despite Newburyport taxes being close to the county median, it is very expensive to own a home here. This proposal is a tool to help long-time residents to stay in their homes for as long as they can.
What are the next steps?
The City Council must approve placing this on the November 2019 ballot. The Budget & Finance Committee is expected to review this at their next committee meeting on July 8, 2019 at 6:30 p.m. If approved by the committee, the matter could come before the full City Council for approval at their next regular meeting on July 15, 2019 at 7:30 p.m.