The Sweden Town Board will hold a public hearing at 6:15 p.m. on Tuesday, February 13, 2024 to hear comments regarding a proposed increase to the senior property tax exemption. Currently seniors age 65 and older receive 50% off their home’s assessed valuation for the purposes of computing town taxes if their annual income is $29,000 or less. There is a sliding scale of assessment reduction for those with an income more than $29,000 but less than $37,400.
The proposal calls for the limits to be raised to $40,000 in order to receive 50% off the senior’s residential assessment; and a sliding scale for those with incomes higher than $40,000 but no more than $52,000. Income includes social security and retirement benefits, interest, dividends, total gain from the sale or exchange of a capital asset in the same income tax year, net rental income, salary or earnings and net income from self-employment but shall not include a return of capital, gifts or inheritances. Part of the proposal includes the addition of Taxable IRA distributions to the income calculation.
Because exemptions are part of the Town’s Code, an action to change the exemption requires a public hearing and adoption of a local law. In order for the changes to go into effect for the next tax bill cycle, the law has to be adopted before March 1, 2024. Sweden has not raised the limits since 2007.
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