SPECIAL LEGISLATIVE, FINANCE AND ADMINISTRATION COMMITTEE
A Special Legislative, Finance, and Administration Committee meeting was held on May 2, 2005, at 5:02 p.m. with Chairman Salters presiding. Members present were Mr. Hogan, Mr. Slavin, Mr. Shevock, and Mr. Shelton (arrived at 5:03 p.m.). Members of Council present were Mr. Sadusky, Mr. Ritter, and Mr. Ruane. Mayor Speed was also present.
AGENDA ADDITIONS/DELETIONS
Mr. Slavin moved for approval of the agenda, seconded by Mr. Shevock and unanimously carried.
Proposed Ordinance Amendment - Chapter 19.5 - Taxation, Section 19.5-52 - Tax Exemption for Senior Citizens
Section 19.5-52(b) of the Dover Code provides for a tax reduction in the amount of $25,000 for real property owners 65 years of age or over. The $25,000 was set when taxes were based on 60% of value. When the property tax base was increased to 100%, the Assessor’s Office increased the tax reduction amount accordingly, which totaled an amount of $41,700 ($25,000 divided by .6); however, Section 19.5-52(b) had not been amended to reflect this change. Members were provided a proposed ordinance amendment that would bring the Code in line with the City’s current practice. Staff recommended adoption of the proposed amendments to Section 19.5-52(b) of the Dover Code.
Members were provided historical information regarding the Over 65 Tax Exemption and correspondence received from Mr. and Mrs. Stephen R. Alexander, 140 Sweetgum Drive, requesting that the Senior Citizens Tax Exemption formula be reevaluated.
Noting that the figures were not realistic since they had not been changed in seven (7) years, Mr. Hogan felt the exemption amount and the property owner income amounts (both single and married) should be increased to provide greater relief to the senior citizens.
Concurring, Mr. Slavin noted that the cost of living has increased significantly for senior citizens in the last few years, including health insurance, the cost of prescription drugs, and a wide variety of costs that impact citizens on fixed incomes.
Mr. Slavin stated that more and more people are retiring before age 65 and suggested that the age limit be decreased to 60 or 62 years of age. He also questioned why railroad pensions were not considered income. Mr. Salters stated that he objected to lowering the age since many people 65 years of age and older still receive income.
Mr. Ruane advised members that, currently, there are 263 property owners with a property value of $10M that are eligible to take advantage of the senior citizen discount. He noted that the City’s tax income is being reduced by $44,710 as a result of those exemptions based on the current limits.
Mr. Hogan suggested that the first $41,700 of assessed valuation be increased to $50,000, that individual income be increased from $10,400 to $15,000, and that the income for married couples be increased from $18,000 to $21,000. Mr. Ritter suggested that the ordinance also include verbiage directing Council to revisit the figures at the completion of each reassessment.
Mr. Hogan moved to recommend that Chapter 19.5 - Taxation, Section 19.5-52 - Tax Exemption for Senior Citizens, be amended, as follows: 1) replace “twenty-five thousand dollars ($25,000.00)” with “fifty thousand dollars ($50,000)” in Subsection (b); 2) replace “ten thousand four hundred dollars ($10,400.00)” with “fifteen thousand dollars ($15,000)” in paragraph (1) of Subsection (b); 3) replace “eighteen thousand dollars ($18,000.00)” with “twenty-one thousand dollars ($21,000)” in paragraph (2) of Subsection (b); and by adding a new paragraph (14) to read “City Council will review these numbers at the conclusion of each reassessment.” (Attachment #1). The motion was seconded by Mr. Slavin and unanimously carried.
Mr. Slavin moved for adjournment, seconded by Mr. Shevock and unanimously carried.
Meeting Adjourned at 5:22 P.M.
Respectfully submitted,
Reuben Salters
Chairman
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Attachments
Attachment #1 - Proposed Ordinance Amendment - Section 19.5-52