[Ord. of 2-19-08(2)]
The objective of the senior tax relief program is to "freeze"
the real estate taxes of taxpayers who qualify under this program
at their current level, subject to budgetary restrictions set forth
below. This program is intended as an alternate form of tax relief
to the deferral program.
[Ord. of 2-19-08(2)]
(a)
The senior tax relief benefit shall be available to those taxpayers
or their spouses with respect to real property located in the Town
of Durham owned and occupied as their principal residence in Durham
who are:
(1)
Sixty-five years of age and over or whose spouses, living with them, are 65 years of age or over; or 60 years of age or over and the surviving spouse of a taxpayer qualified under this plan at the time of his or her death; or with respect to real property located in the Town of Durham occupied as their principal residence on which such residents or their spouses are liable for taxes under G.S. § 12-48; or
(2)
Under age 65 and eligible in accordance with applicable federal
regulations to receive permanent total disability benefits under social
security or who have not been engaged in thereunder but have become
qualified for permanent total disability benefits under any federal,
state or local government retirement or disability plan, including
the Railroad Retirement Act and any government-related teachers' retirement
plan in which requirements with respect to qualifications for such
permanent total disability benefits are comparable to such requirements
under social security.
(b)
The senior tax relief benefit shall be available to taxpayers and their spouses whose total gross income for purposes of the federal income tax, plus any other income not included in such gross income (the total of which shall be called "qualifying income"), does not exceed the limits as set forth in Subsection (c) below. "Qualifying income" shall be defined as all monies received unless specifically exempted, and includes wages, bonuses, commissions, fees, self-employment net income, gross social security income, payment for jury duty, dividends, interest and annuities, IRA income to the extent that is taxable, interest or proceeds from gifts, lottery winnings, net income from sale or rent of real or personal property, pensions, including veterans and railroad retirement, severance pay, unemployment compensation, workers' compensation, alimony and all other sources of income as defined by the office of policy and management. Specifically excluded are social security payments to dependents, gifts, bequests or inheritances (although interest or other income produced by gift, bequest or inheritance must be included), grants for disaster relief, life insurance proceeds and all other exempt sources of income as defined by the office of policy and management. Evidence of such income shall be required, and a signed affidavit shall be submitted to the Durham Assessor when application for benefits under this plan is filed.
[Amended 7-28-2014]
(c)
All such taxpayers or their spouses shall have been taxpayers of
the Town of Durham for not less than one year as of the first day
of October prior to the filing period. In order to make allowances
for long-time citizens in recognition of their significant contributions
to our community, income limits for eligible taxpayers will be adjusted
in accordance with the following schedule.
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Income levels not to exceed:
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Years of Residence
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Single
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Married
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1 to 10
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$32,800
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$40,000
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11 to 20
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$50,840
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$62,000
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20 +
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$68,880
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$84,000
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(d)
All such taxpayers or their spouses who may qualify for tax relief
under G.S. §§ 12-129b to 12-129d, inclusive, and § 2-170aa,
must apply for and be included, if qualified, in such program or programs
as a condition precedent to qualifying for and receiving benefits
under the senior tax relief program. This provision shall not apply
for applications concerning the October 1, 2006, Grand List for taxes
due and payable on July 1, 2007.
(e)
No such taxpayers or their spouses shall be eligible for any benefit
under the senior tax relief program if they are in arrears on any
taxes owed the Town, including but not limited to motor vehicle and
personal property taxes.
(f)
If a qualifying taxpayer owns the property jointly with a non-spouse,
tax relief under the senior tax relief program will be proportionate
to the taxpayer's interest in the property.
(g)
If property is held in trust for a person who would otherwise qualify
for the senior tax relief program, the tax relief may still be granted
if the claimant is the primary beneficiary of the trust and the claimant
meets all other requirements under this program. Under these circumstances,
the application for relief shall be accompanied by a copy of the trust
agreement. The trust agreement shall be reviewed and approved by Town
counsel prior to any relief being granted to the claimant.
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The application for the senior tax relief program shall be a
form that has been developed and approved by the Assessor's office
of the Town of Durham. In developing the application and applying
this program to individual properties, the Assessor shall be guided
by the policies developed by the office of policy and management in
administering the state's tax relief programs set forth in G.S. § 12-129b
et seq. and § 12-170aa. An applicant for the senior tax
relief program must file a written application for the program annually
between February 1 and May 15. An applicant may file for an extension
of the application deadline on or before August 15. The request for
an extension must be accompanied by the required forms, together with
a certificate signed by a physician or an advanced practice registered
nurse indicating that the applicant has been under the care of such
professional for an illness or other incapacitating condition.
[Amended 8-27-2018] |
[Ord. of 2-19-08(2)]
Tax relief under the senior tax relief program ends on the date
that the property is sold or transferred, or on the date of death
of the qualifying owner or qualifying spouse, whichever is earlier.
If such sale, transfer or death occurs prior to the filing period,
the benefit shall be removed as of October 1. If such sale, transfer
or death occurs after the filing of an application, the benefit shall
be prorated unless there is a surviving spouse.
[Ord. of 2-19-08(2)]
(a)
The total amount of tax relief under the senior tax relief program
to all qualified taxpayers shall be determined by the board of finance
and shall not exceed 1/2 of 1% of the previous year's total budget,
including the Town and educational budgets.
(b)
At each January meeting beginning in the year 2008, the board of
finance shall establish a maximum amount, or "cap," for the aggregate
amount of benefits available under this program. This cap shall not
exceed 1/2 of 1% of the previous year's total Town and educational
budgets. The board of finance shall review the percentage of the cap
for the senior tax relief program for the purpose of determining suitability
and shall at the same time set the dollar amount of the cap.
(c)
After consultation with the Assessor, the board of finance shall
determine whether the aggregate amount of benefits sought under this
program exceeds the dollar amount of the cap. If the board of finance
determines that the cap is exceeded, it shall direct the Assessor
to prorate the benefits in accordance with provisions of this section.
Excess abatement over the cap shall be prorated over the total tax
base of all participants in the senior tax relief program in accordance
with the following formula:
Total dollar amount in excess of cap/total base tax of all program
participants X individual participant's base tax = amount to be added
to individual participant's base tax amount
Note:
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•
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The increase in the participant's property tax thereby increases
the base and establishes a new base tax (adjusted basis).
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(1)
"Base tax" shall be defined as the amount of tax levied on the
property at the time the taxpayer qualifies under the senior tax relief
program.
(2)
"Base year" shall be defined as the first year of qualification
in the senior tax relief program.
(3)
"Excess over cap" shall be defined as the amount of tax relief
that exceeds the cap set by the board of finance.
(4)
An example of the proposal would be:
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Cap set by the board of finance:
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$300,000
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Total tax of all participants:
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$1,000,000
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Total relief to all participants:
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$350,000
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Sample tax for participant (A) - base year:
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$3,000
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Excess over cap ($350,000-$300,000) = $50,000/$1,000,000 X 3,000
= $150
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New basis for participant (A) = $3,150
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[Ord. of 2-19-08(2)]
The total amount of tax relief available under the senior tax
relief program, when combined with such property tax relief for which
such taxpayer may be eligible in accordance with G.S. §§ 12-129b
to 12-129d, inclusive, or § 12-170aa, shall not exceed an
aggregate of 75% of the property tax for which such taxpayer would
be liable but for the benefits under the senior tax relief program
and the state tax relief programs mentioned above in this subsection.
If the aggregate amount of such state and local benefits exceeds said
75% of taxes otherwise due, then the amount of the benefit available
under the senior tax relief program shall be reduced so as to be equal
to the difference between the abatement afforded by such state programs
and 75% of the taxes laid against the taxpayer for such real property.
If benefits received under state programs exceed said 75% of the total
taxes otherwise due, no tax benefit shall be available under the senior
tax relief program.
[Ord. of 2-19-08(2)]
Taxpayers shall be eligible to participate in only one local
tax relief program, i.e., the tax deferral program or the senior tax
relief program. The benefits under either local program shall not
be in lieu of benefits available under any state tax relief program.
Taxpayers participating in the Town's existing senior and disabled
tax relief program will enter the senior tax relief program at the
tax amount they currently pay after relief. Going forward they are
subject to the requirements of the new plan.
[Ord. of 2-19-08(2)]
This article shall be interpreted and applied in a manner that
complements and is consistent with existing state tax relief programs.
The policies and interpretations adopted by the office of policy and
management in construing state tax relief programs shall be utilized
in interpreting and applying the provisions of this article.
[Ord. of 2-19-08(2)]
Any person aggrieved by the action of the Assessor in determining
the amount of relief or in disapproving any such application under
this article may appeal to the Board of Selectmen, in writing, within
14 days after the date of the written notification of the Assessor
on such application. The Board of Selectmen shall promptly consider
such appeal and may grant or deny the relief requested, or make such
other modifications necessary to comply with the article.
[Ord. of 2-19-08(2)]
This article is effective on the October 1, 2006, Grand List
for taxes due and payable on July 1, 2007.
