Commissioners send senior tax credit to public hearing

Thursday, Feb. 23, 2006

The Board of Carroll County Commissioners voted unanimously Thursday afternoon to schedule a public hearing session to get public opinion about a proposed senior tax credit. The proposed credit would limit the amount of property taxes paid by seniors over the age of 65 whose annual income is less than $50,000.

The plan was drafted in response to concern over the impact of rapidly rising assessments on seniors with limited incomes. If approved, the county’s tax credit plan would supplement a similar one currently being proposed in the Maryland House of Delegates and Senate this session.

Carroll’s plan, according to Ted Zaleski, director of Management and Budget, establishes a net worth of up to $500,000, excluding qualified retirement programs such as 401Ks and pension plans. The state’s plan establishes net worth not more than $200,000 and includes assets such as 401Ks and IRAs, Zaleski said.

‘‘People with the lowest incomes will benefit the most,” Zaleski told commissioners Thursday, explaining that when the state’s program is phased out, the county’s may kick in.

Zaleski illustrated the county’s plan through an example to the board. Assuming a $300,000 assessed value and an annual income of $15,000, the individual would face a $3,540 tax bill. However, with the proposed legislation, a state credit would cover $1,355 and the proposed county credit would cover an additional $1,374 requiring the homeowner to pay $811 instead of the original $3,540.

Zaleski showed that the tax bill rises as a function of income.

Commissioner Julia W. Gouge was excited to bring the tax credit a step closer to a reality by initiating the public hearing process.

‘‘People have heard a lot about it and are excited about it,” she said.

Chief of Staff Steve Powell explained that the decision about the county’s plan could be held up by approval of the state’s plan. According to Powell, the House bill is scheduled to be heard next week and a decision may not result until early April.

Once a date is scheduled, Carroll’s public hearing will be advertised for two weeks and held before the commissioners.