Town of Cromwell, CT Tax Relief for Elderly and Disabled Homeowners

Tax deferrals shall be granted in connection with real property owned and occupied as a principal residence by taxpayers of the Town of Cromwell who are, at the time of application:

(a)

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 in the Town of Cromwell under this section at the time of his or her death, or with respect to real property on which such residents or their spouses are liable for taxes under C.G.S. § 12-48; or

(b)

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 employment covered by social security and accordingly have not been qualified for those benefits, 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 teacher’s retirement plan, in which requirements with respect to qualifications for such permanent total disability benefits are comparable to such requirements under social security, provided such residents or their spouses under Subsection A(1)(a) or (b) above have been taxpayers of Cromwell for one year immediately preceding the receipt of tax benefits under this section.

Taxpayers otherwise eligible under this section who are unit owners of a cooperative shall also be eligible for a tax deferral in accordance with C.G.S. § 12-129n, as amended from time to time.

Taxpayers with only a life use interest in real property who use the property as their principal residence and pay property taxes may qualify for a tax deferral, provided that the record owner(s) consent to the deferral and the filing of a lien on the land records.

Upon the death of a beneficiary of a tax deferral, the surviving spouse may continue to be eligible if he or she is 60 years of age or older as of the date of the qualifying taxpayer’s death. The surviving spouse will be required to file for a deferral with the Town Assessor annually and meet all other program eligibility guidelines. The surviving spouse may apply as a primary applicant if totally disabled prior to reaching the qualifying age as specified in Subsection A(1)(b) of this section.

(5)

Principal residence shall be defined as full-time residence at the property for which deferral is sought for at least one year preceding the date of application. "Full-time" shall mean occupancy as the qualifying taxpayer(s)’ residence for more than 183 days of each calendar year.

(6)

All real estate taxes for the property must be current by May 1 next following the date of application for tax deferral.

Income qualifications.

Residents must meet the requirements with respect to maximum income allowable during the calendar year preceding the year in which a deferral application is made. Maximum qualifying income limits for each applicant shall not exceed those set forth in C.G.S. § 12-170aa plus $5,000. Because the income ceilings for program qualification are based on the guidelines used by the state Office of Policy and Management (OPM) in connection with its tax relief program for the elderly and disabled, they shall be adjusted annually to reflect each year's current income standards.

Upon recommendation of the Board of Finance, the maximum allowable income levels may be modified by the Town Council. Such changes, if any, are to be implemented prior to the beginning of the next ensuing application period.

The applicant's qualifying income is the total income of the applicant and all record owner(s) or, in the case of a tenant in common or a qualifying taxpayer with life use who pays the property taxes, his or her total income, each together with the applicant's spouse, as applicable or as defined in the State Guidelines for Elderly and Totally Disabled Tax Relief Programs. In addition, qualifying income shall include adjusted gross income as defined in the Internal Revenue Code of 1954 as amended, social security benefits, railroad retirement benefits, income from other tax-exempt retirement and annuity sources, as well as any other taxable and nontaxable income.

Specifically excluded from qualifying income are social security payments made on behalf of a dependent person, casualty loss reimbursement by insurance companies, grants for disaster relief and life insurance proceeds.

§ 211-20 Application.

Application for benefits under this program shall:

Be made on forms provided by the Town Assessor or the Town of Cromwell; and

Be accompanied by proof of all income from the prior calendar year, including a copy of the applicant's SSA-1099 and federal tax returns for the preceding calendar year and any other income documentation as may be requested by the Assessor to determine eligibility hereunder. If a tax return is not filed, a SSA-1099 and all other 1099 forms received shall be provided along with any other income documentation as may be requested by the Assessor to determine eligibility hereunder. The applicant shall sign an affidavit verifying that all income has been reported; and

If applicable, be accompanied by proof of disability such as a SSA-1099 showing Medicare deduction, a properly identifiable writing from the Department of Social Security stating that the applicant is disabled and indicating the amount of social security benefits received, such as a TPQY, or proof of permanent and total disability from a federal, state, municipal, or other government-related program deemed comparable; and

Be filed with the Assessor of the Town of Cromwell any time between February 1 and April 15 of any year that benefits are first claimed. There is no exception to this filing period. All qualifying taxpayers will be required to file a new application annually with the Town Assessor to maintain their eligibility; and

(5)

Be signed and notarized by all record owner(s) and persons with life use of the property.

Applications and other documentation presented in support of the application for tax relief shall not be open for public inspection except as required by law.

Any resident deemed eligible for tax deferral benefits shall be a "qualifying taxpayer" for purposes of this article.

§ 211-21 Administration; computation of benefits.

General authority of administration:

The Assessor is hereby authorized to implement this program, and to adopt such rules and regulations and procedures, consistent with C.G.S. § 12-129n, as may be necessary for the proper administration of this program.

The Assessor of the Town of Cromwell shall determine whether each applying taxpayer is eligible for a tax deferral under this program and shall notify the Tax Collector and each applicant, in writing, of his or her eligibility and the amount of deferred tax by June 1 or within two weeks following establishment of that year's mill rate, whichever occurs later.

Benefits:

Any property tax deferral benefits received by any resident in accordance with the provisions of this section shall not disqualify such resident from receiving any benefits described in C.G.S. §§ 12-129b to 12-129d, inclusive, and C.G.S. § 12-170aa, and any such property tax relief provided under this section shall be in addition to any benefits for which a resident is eligible under those sections.

In cases where a qualifying taxpayer holds title to real property jointly with non-qualified persons, the qualifying taxpayer will receive a deferral benefit in an amount proportional to his or her ownership interest, and the non-qualified persons shall not receive any tax deferral.

The tax deferral shall be granted in connection with principal residences, including the improvements and the minimum lot size required for the zone in which the principal residence is situated, but shall not include excess acreage as determined by the Town Assessor.

Limitation on tax deferrals:

The Town's total deferred property tax revenue that may be granted annually by Cromwell shall be determined by the Board of Finance and shall not exceed an amount equal to 10% of the total real property tax assessed in Cromwell in the preceding tax year. If the qualified applications for deferred tax exceed the total deferred property tax revenue set by the Board of Finance for that year, the amount of deferred tax allowed for each qualifying taxpayer shall be equitably prorated in accordance with each qualifying taxpayer's share of the total deferred tax requested by all qualifying taxpayers.

The tax deferral amount for each taxpayer shall be based on the tax assessment for the year preceding the application, and, upon approval of benefits, shall remain in effect for one year, unless one of the following occurs:

(a)

A revaluation results in less tax owed on a property than the deferred tax amount, which would require that the deferred tax amount be reduced;

(b)

The property has a significant increase or decrease in value; or

(c)

The Town’s total deferred property tax revenue exceeds the maximum amount established in Subsection C(1) above, requiring a pro-rata decrease in the deferral amount for all eligible residents.

The property tax deferral amount, together with any other relief received by a qualifying taxpayer under the provisions of C.G.S. §§ 12-129b to 12-129d, inclusive, and C.G.S. § 12-170aa, shall not exceed 75% of the total amount of annual tax due for any eligible real property.

The total amount of all liens and accrued interest, if any, shall not exceed the assessed value of the property. Qualifying taxpayers or their designees will receive an annual statement from the Collector indicating total amounts deferred to date.

(5)

While both are in effect, qualifying taxpayers shall only be eligible for benefits from one of the senior and/or disabled tax relief programs offered by the Town of Cromwell pursuant to either Article VI, Cromwell Senior Citizen Tax Abatement Program, or this Article VII, Cromwell Senior and Disabled Tax Deferral Program.

Deferred tax liens:

The Tax Collector shall cause an interest-free lien in the amount of the tax deferred to be filed with the Town Clerk and recorded on the land records annually. All liens filed pursuant hereto may be foreclosed in the same manner and according to the same provisions provided in the general statutes for foreclosure of a municipal property tax lien.