[Adopted 2-27-2001 by the Board
of Selectmen; amended in its entirety 10-6-2008]
The objective of the elderly 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 existing GSTRP program.
A.
The elderly tax relief benefit shall be available
to those taxpayers or their spouses with respect to real property
located in the Town of Guilford owned and occupied as their principal
residence in Guilford 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 Guilford occupied as their principal residence
on which such residents or their spouses are liable for taxes under
Section 12-48 of the Connecticut General Statutes; 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 employment covered
by social security and accordingly have not qualified for benefits
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 elderly tax relief benefit shall be available to taxpayers and their spouses whose total adjusted gross income for purposes of the federal income tax, plus any other income not included in such adjusted 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 specifically for a dependent person, casualty loss reimbursements by insurance companies, gifts, bequests or inheritances (although interest or other income produced by a 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 Guilford Assessor when application for benefits under this plan is filed. The Assessor may use all lawful means to verify the applicant's income, including but not limited to requesting copies of the applicant's tax transcripts or tax returns from the Internal Revenue Service, or requesting the Internal Revenue Service to verify that the applicant has not filed a tax return.
[Amended 12-23-2013]
C.
All such taxpayers or their spouses shall have been
taxpayers of the Town of Guilford 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.
|
Income
| |||
|---|---|---|---|
|
Years of Residence
(years)
|
Single
|
Married
| |
|
1 to 4
|
$29,600
|
$36,000
| |
|
5 to 8
|
$44,500
|
$54,000
| |
|
9 to 20
|
$62,500
|
$75,000
| |
|
20 or more
|
$79,000
|
$95,000
| |
D.
All such taxpayers or their spouses who may qualify
for tax relief under Sections 12-129b to 12-129d, inclusive, and 12-170aa
of the Connecticut General Statutes 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 elderly tax relief
program. This provision shall not apply for applications concerning
the October 1, 1999, Grand List for taxes due and payable on July
1, 2000.
E.
No such taxpayers or their spouses shall be eligible
for any benefit under the elderly 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 elderly 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 elderly 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.
H.
Medical expenses.
(1)
For purposes of this section, "medical expenses" are
defined as those medical expenses eligible to be claimed as deductions
on Schedule A of Internal Revenue Form 1040. These expenses include,
for example, nursing home expenses, but do not include medical expenses
reimbursed or paid by an insurance company or other sources, whether
the payments were made directly to the participant, the patient, or
to the provider of the medical services.
(2)
If a participant in the program has incurred income
due to the need to pay medical expenses reported on Schedule A of
Internal Revenue Form 1040; that income causes the participant's income
to exceed the participant's prior year's income by at least 10 %;
and that income would otherwise disqualify the participant from continued
participation in the program, then upon satisfactory proof to the
assessor that the income was due to the need to pay medical expenses,
the assessor shall deduct from the most recent annual income the amount
of medical expenses reported to the Internal Revenue Service on Schedule
A of Form 1040 as an itemized deduction up to the amount of reported
medical expenses. The assessor shall use this figure to determine
the participant's continued eligibility to participate in the program.
In determining whether the income was due to the need to pay medical
expenses, the assessor shall require the participant to submit the
participant's federal tax returns for the three years preceding the
year for which the elderly tax benefit is being sought so that the
Assessor may compare the participant's income and medical expenses
for the current year with the participant's income and expenses for
the three prior years.
[Amended 12-23-2013]
[Amended 12-23-2013]
The application for the elderly tax relief program
shall be a form which has been developed and approved by the Assessor's
Office of the Town of Guilford. As part of the application, the Assessor
shall require the applicant to submit information relating to the
applicant’s income, including (1) the applicant's complete income
tax return (if the applicant has filed a return), and (2) signed authorization(s),
such as IRS Form 4506-T, permitting the Internal Revenue Service to
disclose to the Assessor information from the applicant's filed tax
returns or verification that the applicant has not filed a tax return.
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 C.G.S. §§ 12-129b
et seq. and 12-170aa. An applicant for the elderly tax relief program
must file a written application for the program annually between February
1 and May 15.
Tax relief under the elderly 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.
A.
At each January meeting, 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 be less than 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 of the elderly
tax relief program for the purpose of determining suitability and
shall at the same time set the dollar amount of the cap.
B.
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.
[Amended 12-23-2013]
(1)
If the Board of Finance determines that the cap is exceeded, the Board may amend the cap if it determines that such amendment shall have no adverse effect on the Town budget. If the Board does not amend the cap, as allowed herein, or does not amend the cap to an amount sufficient to provide full benefits to those otherwise qualified to receive benefits under this program, it shall direct the Assessor to prorate the benefits in accordance with Subsection B(2) and Subsection C.
(2)
If the Board of Finance determines that the cap is exceeded, it shall direct the Assessor to prorate the benefits in accordance with this Subsection B(2) and Subsection C. Excess abatement over the cap shall be prorated over the total tax base of all participants in the elderly tax relief program in accordance with the following formula:
|
Total Excess Relief Over Cap
Total Base Property Tax of All Participants
|
X
|
Participant's Base Tax = Increase in Participant's
Property Tax*
| |
|---|---|---|---|
|
NOTES:
| |
|
* The increase in the Participant's Property
Tax thereby increases the base and establishes a new base tax (adjusted
basis).
| |
|
"Base tax" shall be defined as the amount of
tax levied on the property at the time the taxpayer qualifies under
the elderly tax relief program.
| |
|
"Base year" shall be defined as the first year
of qualification in the elderly tax relief program.
| |
|
"Excess over cap" shall be defined as the amount
of tax relief which exceeds the cap set by the Board of Finance
| |
|
An example of the proposal would be:
| |
|
Cap Set by the Board of Finance: $300,000.
| |
|
Total Tax of All Participants: $1,000,000.
| |
|
Total Relief to All Participants: $350,000.
| |
|
Sample Tax for Participant A-Base Year: $ 3,000.
|
|
Excess Over Cap ($350,000-$300,000) =
|
$50,000
$1,000,000
|
X
|
3,000 = $150 (amount of increase of Participant
A's property tax)
|
C.
If the program cap should be realized, all participants whose income exceeds $60,000 married ($50,600 single) shall be subject to pro-rating of program benefits as described in § 247-27B(2) of the Elderly Tax Relief Program Ordinance. The benefits to program participants whose income is $60,000 married ($50,600 single) or less shall be prorated only if the cap is still exceeded after all participants whose income exceeds $60,000 married ($50,600 single) have obtained no benefits.
The total amount of tax relief available under
the elderly tax relief program, when combined with such property tax
relief for which such taxpayer may be eligible in accordance with
Section 12-129b to 12-129d, inclusive, or 12-170aa of the Connecticut
General Statutes, shall not exceed in aggregate of 75% of the property
tax for which such taxpayer would be liable but for the benefits under
the elderly tax relief program and the state tax relief programs mentioned
above in this section. 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 elderly 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 elderly tax relief program.
Taxpayers shall be eligible to participate in
only one local tax relief program, i.e., the GSTRP program or the
elderly tax relief program. The benefits under either local program
shall not be in lieu of benefits available under any state tax relief
program.
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.
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 or a three-member
Committee appointed by the Board of Selectmen for such purpose, in
writing, within 10 days after the date of the written notification
of the Assessor on such application. The Board of Selectmen or said
appointed Committee shall promptly consider such appeal and may grant
or deny the relief requested, or make such other modifications necessary
to comply with the ordinance.
This article is effective on October 1, 2005,
Grand List, for taxes due and payable on July 1, 2006.
[1]
Editor's Note: Former § 247-32.1, Amendment of cap;
effective date, was repealed 12-23-2013.
