HomeMy WebLinkAbout2018-12-21-REPSC-minResidential Exemption Policy Study Committee (Ad Hoc)
Friday, December 21, 2018
Hudson Room, Cary Memorial Building
Meeting Minutes
Attendance:
Mark Andersen, Chair; Sara Bothwell Allen; Vicki Blier; Katie Cutler; Thomas Whelan; and Board of
Selectman Liaison Joe Pato.
Guest Observers: Bob Pressman, Kevin Johnson
Mr. Andersen called the meeting to order at 8:02 am.
Ms. Blier volunteered to record the meeting minutes.
Public Comments:
Mr. Johnson indicated that as a 28 -year resident with his children out of school, that he is evaluating
whether to stay in Lexington. Property taxes are his household's biggest expense. Even though other
committees are working to mitigate recent tax increases, the need for a new high school looms and
creates uncertainty regarding property tax increases.
Mr. Pressman offered suggestions for improving how data regarding market value vs. stress is reported
in our survey results.
There was a short discussion of the status of prior meeting minutes, and the minutes from the
December 7 meeting were approved.
Ms. Blier presented a draft of the introduction to the committee report for discussion and received
comments on areas in question regarding how to present our work within the framework of the
committee charge.
Mr. Andersen presented two possible scenarios for an innovative Lexington means -tested exemption.
A "Circuit Breaker Extension" would have a sliding scale provision for the applicant's asset level. Younger
elderly could qualify with higher assets than the older elderly because the younger applicants will need
to finance potentially more years of living expenses. This scenario gives exemptions based on whether
the senior's property tax exceeds 15% of his or her income. The 15% level is designed to avoid a
situation where the Lexington exemption itself reduces the senior's property tax to below 10%, which is
the qualifying percentage for receiving the State's Senior Circuit Breaker Property Tax Credit.
An "Octogenarian Tax Exemption" would have a sliding scale provision for the amount of the exemption
itself. Exemptions would range from 5% of the Town's median residential property value for the younger
elderly up to 50% of the median for the oldest elderly.
Mr. Andersen's exemption scenarios are designed to avoid creating a sharp line between qualifying for
significant assistance and not qualifying for any assistance at all. Mr. Andersen expressed that the
committee will need to decide whether it likes the idea of scaling the exemption by the age of the
recipient.
A discussion ensued regarding what the appropriate length -of -residency requirement should be.
Concerns were expressed regarding the complicated formulation of the two exemptions and the
difficulty for seniors to understand and predict their future property tax obligations. Concerns were
expressed about the need to define who we want our exemptions to help.
Mr. Pato expressed the opinion that exemptions are not likely to change anyone's decision to move out
of Lexington, but they will help lower-income seniors who stay, and will send a message to Lexington
seniors that we are doing something for the elderly.
It was expressed that there is a need to have the feasibility of any innovative form of exemption vetted
by experts in the field of taxation as well as by Lexington's finance staff and such a process is not likely
to ready in time for the Annual Town Meeting. In addition, Mr. Pato felt that the Selectmen are likely to
be conservative regarding the process of vetting a concept that has not been previously proven out by
other municipalities.
The committee will next meet on January 4, 2019.
Mr. Andersen adjourned the meeting at 9:32am.
Respectfully submitted by Vicki Blier, acting secretary.
These minutes of the Residential Exemption Policy Study Committee (Ad hoc) were reviewed and
approved by Mark Andersen, the Chair