Wednesday, September 9, 2009
Senior Tax Break Gets Preliminary Yes
The ill feelings of a heated council debate over a low-income senior citizen property tax rebate spilled over into another week’s meeting. Council voted 8-1 to give preliminary approval to the bill that would tweak the ordinance that gives a tax reduction to any city home owner over the age of 50 with an income of less than $30,000 a year. Councilman Patrick Dowd first brought the ordinance under scrutiny when seniors asked him why they had to reapply for the tax break every year. While reviewing the law, council realized that it did not comply with PA Act 77, which allows for such a tax break for those over 60. Not 50. Council also cleaned up the ordinance to specify a 30% reduction. The current code bases the reduction o the age of the house. In an effort to easy the transition, the new ordinance includes a grandfather provision for all homeowners under the age of 60 who qualified for the tax cut this year. Councilman Jim Motznik argued that the new bill amounted to a tax increase for low-income 49 year olds who were counting on the tax break next year. The difference between cutting off all home owners under 60 and allowing those who are grandfathered into the bill would amount to just 34 home owners. Councilman Bill Peduto argued that the city has been out of compliance with the law and must at least start to move in the right direction.
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