Romney, lawmakers at odds over senior tax relief plan

Romney, lawmakers at odds over senior tax relief plan Thursday, February 26, 2004

Steve LeBlanc Associated Press

Gov. Mitt Romney is criticizing a plan by Democratic lawmakers to let cities and towns give senior homeowners extra property tax breaks, saying it only shifts the burden to other taxpayers.
Supporters say the plan will give older residents much needed relief from soaring property tax bills and allow some seniors on fixed incomes to stay in their homes.
But critics, including Romney, say the real goal of the plan is to make it easier for cities and towns to pass overrides to Proposition 2 1/2 -- which limits how much communities can raise property taxes -- by undercutting opposition from older voters.
"If we can find ways to reduce the tax burden on seniors, I'm all for that," Romney said. "But we will look very carefully at, and very critically at, any effort which is a cynical or transparent attempt to kill Proposition 2 1/2 in the process."
Exempting seniors from tax hikes will impact families who may not be in any better position to shoulder higher tax bills, said Romney, who vowed to veto any bill that "tinkers with Proposition 2 1/2."
Seniors said they welcome the proposed changes.
"Many of those seniors (who would benefit) helped build the infrastructure of their communities, helped build schools," said Norma Simons Fitzgerald, executive director of the Council on Aging in Sharon.
The plan, which was approved Thursday by the joint House and Senate Taxation Committee, would let communities take several steps to insulate seniors from tax hikes, including exempting elderly homeowners whose property is valued at less than $750,000 from overrides. Current law sets the exemption level at $432,000.
The plan would also let cities and towns charge a lower interest rate for seniors who defer payment of their property taxes, and create a new senior property tax exemption equal to 10 percent of the average assessed value of residential property in the community for lower income seniors.
Democratic lawmakers say that given the state's soaring property values, raising the cap to $750,000 makes sense. The average selling price of a single family house in Massachusetts was $376,360 in 2003.
"There isn't a single home on the Vineyard or Nantucket that can take advantage (of the exemption) under the current cap," said Sen. Robert O'Leary, D-Barnstable.
Romney was less sympathetic to that argument.
"A $750,000 home is well above the median home price in Massachusetts," he said.
The House earlier this month passed a bill to boost the exemption cap from $432,000 to $500,000. Supporters said the change was needed to keep pace with rising property values.
Diehard defenders of Proposition 2 1/2 say the bill is designed to split supporters by giving seniors, who typically oppose overrides, a reason to stay away from the ballot box when an override is put to voters.
"If this passes, seniors will stay at home and will not be a part of our first line of defense of Proposition 2 1/2," said Barbara Anderson of Citizens for Limited Taxation.
The bill faces an uncertain future. It must be approved by the House and Senate before heading to Romney. A two-thirds vote in both chambers is needed to override a Romney veto.

Romney, lawmakers at odds over senior tax relief plan	Thursday, February 26, 2004
Steve LeBlanc	Associated Press
Gov. Mitt Romney is criticizing a plan by Democratic lawmakers to let cities and towns give senior homeowners extra property tax breaks, saying it only shifts the burden to other taxpayers. Supporters say the plan will give older residents much needed relief from soaring property tax bills and allow some seniors on fixed incomes to stay in their homes. But critics, including Romney, say the real goal of the plan is to make it easier for cities and towns to pass overrides to Proposition 2 1/2 -- which limits how much communities can raise property taxes -- by undercutting opposition from older voters. "If we can find ways to reduce the tax burden on seniors, I'm all for that," Romney said. "But we will look very carefully at, and very critically at, any effort which is a cynical or transparent attempt to kill Proposition 2 1/2 in the process." Exempting seniors from tax hikes will impact families who may not be in any better position to shoulder higher tax bills, said Romney, who vowed to veto any bill that "tinkers with Proposition 2 1/2." Seniors said they welcome the proposed changes. "Many of those seniors (who would benefit) helped build the infrastructure of their communities, helped build schools," said Norma Simons Fitzgerald, executive director of the Council on Aging in Sharon. The plan, which was approved Thursday by the joint House and Senate Taxation Committee, would let communities take several steps to insulate seniors from tax hikes, including exempting elderly homeowners whose property is valued at less than $750,000 from overrides. Current law sets the exemption level at $432,000. The plan would also let cities and towns charge a lower interest rate for seniors who defer payment of their property taxes, and create a new senior property tax exemption equal to 10 percent of the average assessed value of residential property in the community for lower income seniors. Democratic lawmakers say that given the state's soaring property values, raising the cap to $750,000 makes sense. The average selling price of a single family house in Massachusetts was $376,360 in 2003. "There isn't a single home on the Vineyard or Nantucket that can take advantage (of the exemption) under the current cap," said Sen. Robert O'Leary, D-Barnstable. Romney was less sympathetic to that argument. "A $750,000 home is well above the median home price in Massachusetts," he said. The House earlier this month passed a bill to boost the exemption cap from $432,000 to $500,000. Supporters said the change was needed to keep pace with rising property values. Diehard defenders of Proposition 2 1/2 say the bill is designed to split supporters by giving seniors, who typically oppose overrides, a reason to stay away from the ballot box when an override is put to voters. "If this passes, seniors will stay at home and will not be a part of our first line of defense of Proposition 2 1/2," said Barbara Anderson of Citizens for Limited Taxation. The bill faces an uncertain future. It must be approved by the House and Senate before heading to Romney. A two-thirds vote in both chambers is needed to override a Romney veto.

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