City Council Moves to Freeze Property Taxes for Seniors and Disabled

In a recent government meeting, council members discussed a proposed ordinance aimed at establishing an annual tax freeze for residential homestead property owners aged 65 and older, as well as those who are disabled. The initiative seeks to alleviate the financial burden on these vulnerable groups by potentially freezing their property tax bills at zero.

Council member Wood raised the initial inquiry about the feasibility of implementing a tax freeze at zero for eligible individuals. However, city officials clarified that due to the absence of a property tax rate in 2023, a straightforward freeze at zero is not possible. Instead, they proposed adjusting the existing exemption value for those aged 65 and older or disabled, which currently stands at $50,000. The suggestion is to increase this exemption to a significantly higher amount, ideally reflecting the highest property value among eligible residents, thereby allowing for a more effective freeze in 2025.

The council acknowledged the complexities involved in the tax code and the implications of setting a high exemption value. They discussed the need for annual reviews to ensure the sustainability of the exemption and to prevent an overwhelming shift of the tax burden onto local businesses. The financial advisor estimated that the proposed changes could lead to a reduction of approximately $1 million in tax revenue, which raised concerns about the long-term viability of such a measure.

Public comments during the meeting reflected a mix of support and caution. Some residents expressed a desire for a permanent freeze at zero, while others suggested locking in the first year's tax rate for seniors, ensuring that their tax obligations do not increase in subsequent years. The council emphasized the importance of clear communication with the community regarding the implications of the proposed tax freeze and exemption adjustments.

Ultimately, the council unanimously voted to amend the resolution to set the exemption for those aged 65 and older or disabled at $1 million and to implement the property tax freeze starting in 2024. This decision marks a significant step towards addressing the financial concerns of senior and disabled residents in the community, while also navigating the complexities of local tax policy.