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APPROPRIATION COMMITTEE-2018 ATM additional exemption could not result in the taxpayer either: (a) paying less than was owed the prior year, or(b)paying less than 10%of the real estate tax which would otherwise be due. Discussion As Lexington residents' property taxes have increased substantially over the last decade, the amounts of the personal exemptions available to the neediest homeowners have remained relatively static and have not kept up. To take the Clause 41C exemption for example, which is now available to residents over 65 earning less than $26,284 (single) or $39,428 (married), see Appendix D, Town Meeting increased the exemption amount from $500 to $750 in 2004, and then raised it to the maximum allowable amount of $1,000 in 2006,but that amount has not been increased since. The situation is similar for other categorical exemptions. In the meantime, the Lexington average single-family home tax bill has increased from $7,739 in FY2006 to $ 14,169 in FY2018, an 83% increase. Acceptance of G.L. c. 59, § CI/2 now repre- sents the best and most immediately available option to bring these exemptions up to date. It should be noted that the State does provide reimbursement for some portion of the underlying exemp- tions, though in most cases, including for Clause 41 C, the amount of that reimbursement has been frozen for many years and the Town has been required to make up the difference in its overlay account. As set forth in the table below, which was prepared by the TDESC, the Town in 2016 abated some $111,801 for residents qualifying for the exemptions affected by this article and received a total of$78,063 in state re- imbursement, for a net cost to the Town (through its overlay account) of $33,738. If a 100% increase were adopted for the "optional additional exemption," the incremental cost to the Town, after taking into account state reimbursement, would be approximately$90,000. 2016 Data 100% Increase B D E F G H Total Tax Total 2016 Net 2016 Total Tax Net Cost to Total New Dollars State Cost to Dollars Town Cost to Abated at Reimburse- Town at Abated Town 2016 Ex- ment current ex- emption emption Rate amounts B plus 100% F minus D G minus E where appli- B minus D cable $111,801 78,063 33,738 200,972 122,909 89,171 Several nearby town have already adopted the "optional additional exemption" in the following percent- ages: Bedford(100%), Burlington (100%), Weston(100%), Belmont(85%), Billerica(60%), and Arling- ton(30%). Other towns, such as Newton and Wellesley have not yet adopted any add-on. With assurances that the balance in the combined overlay accounts are more than adequate for this pur- pose in FY2019, the Selectmen have voted to propose to Town Meeting the acceptance by Lexington of G.L. c. 59C'/2 at the 100% level. Depending on Lexington's future experience, it might be necessary to make modest increases to the annual overlay funding to maintain this percentage. The Committee sup- ports this proposal and believes this is a reasonable and appropriate ongoing expenditure for the benefit of the Town's neediest citizens and veterans. The Committee recommends approval of this request(9-0). 55