DERRY — Changes in the town's elderly property tax exemption program has brought more seniors looking for a break on their taxes than the Town Council expected.
Since the council increased the exemptions and expanded the qualification standards in March, a total of 91 seniors have applied to take advantage of the program but only 75 have been accepted. That brings the number of seniors who pay a reduced price on their tax bills to 237, according to Assessor Dave Gomez.
While at least one councilor says the elderly exemption forces everyone else to cough up more money in taxes, Councilor Kevin Coyle still says it's one of the best things he's ever done as a councilor.
"No mater how many people are eligible, it's the right thing to do," Coyle said.
Last year, the total amount of property value in Derry that was exempt was about $18 million. But this year Gomez estimates it will be at least $27 million. He couldn't provide an exact figure because next year's tax rate is set in September.
That figure is expected to be $22.21 per $1,000 of valuation, which is 16 cents higher than the current rate.
Under the new exemption program, presented by councilors Brent Carney, Janet Fairbanks and Coyle, residents 65 to 74 would not be taxed on $85,000 of the assessed value of their homes, instead of $83,300. The exemption would be $125,000 for residents 74 to 79 years old, instead of $122,200. And for residents over 80, the exemption is $165,000 of the assessed value of the property, instead of $163,300.
Coyle said the new exemptions cost taxpayers a penny or two more than the old exemptions and go a long way to helping people who need it the most.
The majority of the new seniors who get the tax break were able to qualify because of changes to the income levels, according to Gomez.
Under the expanded exemption qualification standards, a single person could make up to $35,000 per year instead of $28,800 and a couple could make up to $45,000 instead of $35,500 to qualify.
Councilor Brian Chirichiello, who was the only councilor to vote against the amendment, said he supports elderly exemptions but fears this was the wrong time to change to have more people qualify for tax relief.
"I just know with the economy the way it is, people are going to have a hard time with their winter heating bills," Chirichiello said, emphasizing that he supported an elderly exemption increase in 2005.
Even though the town increased the exemption, Derry's exemption is still lower than neighboring Windham, Atkinson, Hampstead and Chester in all three categories. In Windham, seniors over the age of 80 do not have to pay any municipal property taxes, according to a memo from Derry Chief Financial Officer Frank Childs.
For information on how to apply for the elderly exemption, visit the town's Assessing Department or visit the town's Web site at www.derry.nh.us.
