Holyoke – Councilor At Large Kevin Jourdain announced that he has co-sponsored an order with City Councilor At Large John G Whelihan to dramatically increase the eligibility of senior property tax exemptions in the City of Holyoke so that an additional two hundred seniors will be potentially eligible for eligible for critically needed tax relief. “For 16 years, I have fought for affordable and stable residential property tax rates, as well as, curb the growing cost of city government,” said Jourdain.
“Unfortunately, the city has continued to increase its tax levy each year and it is hurting many of our seniors who are on fixed income, this order will come as welcome news that some relief is on the way,” added Jourdain. For the Fiscal Years 2000-2009, the tax levy, which is set solely by the Mayor, has been increased by $2 million per year causing average single family tax bills to increase $1200 per year.
M.G.L. Ch 59 §5(41C) establishes the state allowances for senior tax exemptions and who is eligible. Councilor Jourdain proposes to amend the eligibility allowances to the maximum allowable under the statute as follows:
1) That the eligibility age be reduced from 70 to 65
2) That the Income Limits be raised to $20,000 for singles and $30,000 for married persons from $18,000 for singles and $25,000 for married couples.
3) That the Asset Limits be raised to $40,000 for singles and $55,000 for married persons from $35,000 for singles and $37,000 for married couples.
4) Asset Deductions be allowed for up to a 4-Family for number of units in the home from up to a 3-Family home under current Holyoke law.
5) That the Exemption allowed be increased from $500 to $750.
Statistically, because of the current lower eligibility limits only 79 people in Holyoke currently qualify for the current $500 tax exemption. The City of Holyoke is permitted to distribute 259 exemptions of $500 and get a full 100% reimbursement from the state. Therefore, except for adjusting the amount of the exemption to $750, adjustments 1-4 in the Jourdain-Whelihan proposal comes at no cost to the city.
Because of the rising average single family tax bills, the current elderly tax exemption of $500 has lost much of its impact because it used to account for 30% of their tax bill but now only reduces 18% of the bill. By increasing the exemption to $750, the exemption would account for 28% of their bill and provide some real relief that will come as seniors on fixed income with limited assets could sorely use. “While Social Security is giving no raises, Holyoke must remain affordable to our seniors who are often caught between a rock and hard place when they try to make ends meet, this order will provide hundreds of dollars in new relief for each senior” said Jourdain.
With the city preparing to certify millions in new free cash in addition to $9 million in stabilization fund, the small cost of $250 (because state pays first $500) to help 259 of our most needy seniors keep their homes would cost only $64,750 if every senior who qualified took exemption. “Our seniors built Holyoke and when they are in need we need to make sure we are there for them,” said Jourdain.
The Jourdain proposal would begin July 1, 2010 if adopted by the City Council. At the meeting, the Jourdain-Whelihan order was referred to the Finance Committee for a committee meeting with the Assessors. Councilor Jourdain also added, “I am very proud to co-sponsor this order with Jay Whelihan, his father and I adopted the last adjustment 6 years ago and his father would certainly have supported this order because he was always a champion for our seniors.”
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