Article 35 Extension of the Means Tested Senior Tax Exemption Program Annual Town MeetingMay 4, 2015

Purpose of the Program Permitted as a pilot program in Sudbury under a special act of the Legislature July 27, 2012 Make it financially possible for seniors on limited fixed incomes to remain in their homes Long term objective to increase proportion of seniors in Sudbury Reducing proportion of households with school age children will relieve pressure on operating budget

Program Details Income Qualifies for Circuit Breaker State Income Tax Credit Taxable income up to $55K per annum single or $80K per annum married filing jointly Pay more than 10% of income in real property taxes Property assessed value no more than town average plus 10% Property Owner at least age 65; any co-owner at least age 60 Sudbury resident at least 10 consecutive years. Board of Assessors may determine that assets are “outside of the intended recipients”

Program Impact Individual property tax bill reduced by as much as 50% Reductions paid for by increasing the property tax of all other residents Amount of “shift” limited to ½%-1% of total property taxes, actual amount to be set by BOS FY 2014: 118 applications approved with average benefit of $2,450 and town wide average tax increase of $45 FY 2015: 124 applications approved with average benefit of $2,664 and town wide average tax increase of $60

Article 35 Program set to expire June 2016 Encouraging qualifying homeowners to remain here requires a change in their housing cost Three or six year decrease in taxes not adequate to change long term thinking about cost of living in Sudbury Article 35 requests deletion of the expiration date of the Act, thereby making the program permanent Approval of this change, if enacted by the Legislature, subject to Sudbury voter approval

Article 35 Extension of the Means Tested Senior Tax Exemption Program Annual Town MeetingMay 4, 2015