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Council to consider changes to senior tax exemption By Jeff Brown There will be a slight increase in the number of low-income seniors who can take advantage of Dover’s property tax exemption, provided City Council approves changes to existing legislation. The proposal was brought up during the March 19 meeting of the city’s Services to Seniors Committee. Acting city Tax Assessor Cheryl Russell said there are 343 seniors who were approved for the exemption last year. If all of the proposed changes are approved, that number could jump to 393. Currently unmarried persons 60 years of age and older earning less than $15,000 per year may request the exemption, Russell said. Under the proposal, that amount will go up to $15,851. Couples who previously had an income limit of $21,000 will see that number go up to $22,192. The increases, the first since 2005, are tied to annual cost of living adjustments from the Social Security Administration, Russell said. Another change will automatically raise the income limits each year, also tying them to Social Security COLA changes. While this means city council no longer will need to review the income limits annually, those who want the exemption still must apply for it each year, Russell said. Income derived from Social Security and railroad retirement pensions is exempt from the limits, and the council will be asked to exclude income from civil service pensions. An estimated 25 more people will be eligible for the exemption because of the income limit increase, Russell said. In addition, council will be asked to give all disabled persons the same property tax exemption, regardless of their income level. An applicant’s disability status will be the same as that determined by the Social Security Administration. Russell estimates senior citizen exemptions currently cost the city $56,567 a year; passing both the income limit increases and disability provisions will add approximately $8,277 to that total. The changes are the result of four months of work by the city’s nine-person ad hoc Tax Exemption Review Committee, chaired by Third District Councilman James G. McGiffin. Dover City Councilwoman Sophia Russell, who chairs the Services to Seniors Committee, lauded the exemption committee’s work. While it may cost the city some income, the exemption ultimately will save money, she said. “It assists seniors in the ability to keep their homes, who might lose them because of prohibitive taxes,” she said. “In the long run, this is a savings for the city of Dover,” Russell added. “You won’t end up with blighted residences that will have to be torn down.” The proposed legislation must first be approved by the city’s Legislative, Finance and Administration Committee, and then by the full council. Final action could be taken as early as April. Applications for the property tax exemption are available at the Modern Maturity Center, the Dover Public Library and the city assessor’s office. The forms also may be requested by mail by calling the assessor at 736-7022. The paperwork must be completed and returned to the assessor no later than May 31.
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