HomeMy WebLinkAbout2018-11-28-TDES-min Draft
Selectmen's Tax Deferral and Exemption Study Committee
Meeting Minutes
A meeting of the Tax Deferral and Exemption Committee was called to order at 1:15 PM on
November 28, 2018, in the Dawes Room at the Lexington Town Office Building.
Members present were: Vicki Blier; Pat Costello; Dick Bair, Carolyn Kosnoff, Assistant Town
Manager for Finance; and observer Jane Current. Member Pam Joshi was unable to attend.
The purposes of the meeting:
1. Review and approve minutes from January 3, 2018 meeting.
2. Reviews and updates of Lexington's Tax Deferral and Exemption Programs
3. Discussion of and recommendations for possible changes to the qualifications for Tax
Deferrals.
Minutes of the January 2018 meeting were reviewed and unanimously approved for posting.
Vicki Blier presented an analysis of Contextual Data for Lexington Senior Tax Deferral Program
by Committee member Pam Joshi. The analysis compiled data from 2001 to 2018 to determine
if there was correlation between the number of deferrals granted and other data/events
including the income threshold for qualification for deferral and interest rate charged, inflation
and unemployment rates. Pat Costello added dates of the most recent debt exclusions in 2017,
2016 and 2012 and overrides in 2006 and-2003. Between 2015 and 2016 the annual number of
deferrals jumped from 28 to 43 and has held at that higher level. However, there was no clear
correlation amongst the other factors in the analysis to explain whether any single factor causes
increases in deferrals
Ms. Blier noted the income threshold for deferrals was last raised to $70,000 in 2017 and real
estate taxes in Lexington have continued to increase since then. Discussion followed about
possibly raising the income threshold to $75,000. Ms. Kosnoff offered to prepare a brief
analysis to determine the financial impact to the Town of the revenue reduction that a higher
income threshold might generate. That analysis would enable this Committee to make an
informed recommendation on a higher threshold at the 2019 Town Meeting.
Pat Costello noted that Governor Baker signed new legislation in August. The Brave Act
provides some property tax relief to veterans. She will research the provisions to determine
how they may impact the work of this Committee.
Ms. Blier is a member of the Residential Exemptions Policy Study Committee which will have a
public meeting on December 11, 2018. That group has also discussed means-based
exemptions as in Sudbury, MA.
MOTION: The Committee members voted unanimously to increase the qualifying income
threshold for a property tax deferral to $75,000.
The meeting adjourned at 2:30 PM.
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Next Meeting: TBD
Respectfully submitted,
Dick Bair
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