(July 22, 2008) -- The City Attorney's office (per Assistant City Attorney Heather Mahood) confirms to LBReport.com that single family owner/occupied residential property owners over age 65 can exempt themselves from paying the city management/Mayoral proposed property parcel tax if they apply for the exemption annually.
The confirmation follows-up on a stir created at last night's (July 21) 5th district Town Hall meeting called by Councilwoman Gerrie Schipske on the proposal...when Dir. of Financial Management Lori Ann Farrell said (accurately) that the measure included an exemption for seniors...prompting an audible response from many of the seniors present in the audience at the El Dorado Senior Center.
The proposed ordinance text states in pertinent part:
An exemption from the special tax will be made available to
owners of single family residential units in which they reside who will attain the age of 65 years during the assessment year, who owns a beneficial interest in the parcel and who uses that parcel as his or her principal place
of residence . Owners must apply to the City for this exemption in the manner and at the time set forth in procedures established by the City.
Such application shall be on forms available from the Director of the Department of Financial Management . Any one application from a qualified applicant will provide an exemption for the parcel for that assessment year, and with an annual renewal with the City, for the remaining term of the assessment so long as such applicant continues to use the parcel as his or her principal residence.
There's also a separate exemption for low income owners:
An exemption from the special tax will be made for owners of
single family residential units receiving Supplemental Security Income for a
disability, regardless of age . Owners must apply to the City for this
exemption annually in the manner and at the time set forth in procedures
established by the City . Such application shall be on forms available from
the Director of the Department of Financial Management and must provide
information sufficient to verify that such owner is in fact receiving
Supplemental Security Income for a disability.
Assistant City Attorney Mahood emailed in response to our inquiry on the matter this morning, "I wanted to make it clear that the City's parcel tax contains a clear exemption from the tax. If a senior applies for and is granted the exemption, the tax is not payable at all, and no lien is put on the property."
[The state's separate ad valorem tax might trigger liens, but seeking the senior exemption from the proposed city parcel tax wouldn't trigger a lien, Ms. Mahood indicated.]
Following Ms. Farrell's statement about the exemption for seniors last night, Councilwoman Gerrie Schipske commented (i>ad lib off the cuff) that perhaps 80% of the 5th district probably wouldn't be paying the tax. [80% was an off the cuff figure; we're working to get an accurate number.]
LBReport.com has calls into LB city management this morning to determine what assumptions they've made in their calcuations for the financial effects if large percentages of LB seniors seek the exemption annually.
If seniors were to claim the exemption, this wouldn't raise the parcel tax for others...but would reduce the net City Hall revenue from the tax.
And there's also a powerful political aspect to the issue: seniors who would be able to vote on the tax rom which they could exempt themselves as the measure is presently written are historically among the city's highest propensity voters.
The measure (which management and the Mayor changed after first proposing it as a General fund measure on July 10) comes to the City Council just hours from now...with no Council committees having held hearings on it...and until tonight, no Council discussion of it.
Developing with further as newsworthy on LBReport.com.
