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1) Re: 2009 Senate Bill 5109 (Property valuation freezes for senior citizens and disabled persons) [by glhadley on January 15, 2009]The wealthiest segment of the population is the elderly even though they may not have the largest disposable income. Many with low incomes have considerable net worth in assets that don't show up on income tax forms.
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This completely ignores the net worth of a person. If I don't take anything out of my 401(k), TSA, etc. for a year, I could qualify, although I have sufficient assets to be reasonably able to pay the same property taxes as a young couple just starting out, maybe woth a couple kids. Disposable income is not the be-all and end-all of a person's ability to pay his/her property taxes.
Each person who lives in the state and gets the benefits of state residency should be paying the same taxes or taxes at the same rate. It disturbs me that someone with low income but with significant net worth tied up in a house gets to skip out of paying property taxes. In fact, forcing younger, non-disabled taxpayers to subsidize the elderly who are living in larger houses than they need is directly subverting another social goal of the state to let everyone own their own home. I don't object to the elderly living in huge houses if they can afford it. I do object to subsidizing them while they are doing it.
Taxes should be about raising revenue, not offering compassion to those who are unrealistic about their circumstances.
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SB 5109 is a good first step towards freezing property taxes for senior citizens. However, it should freeze the tax, not the valuation; and the income threshold should be higher and pegged to the cost of living index.
First, get done what you can. Later, make it better.
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