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Proposed homesteader credit could help Morgan County seniors

Sep 17, 2024 11:24AM ● By Linda Petersen

Morgan County officials are considering implementing a property tax credit that would bring relief to some local seniors. What they’re calling the Homesteader Credit would be for Morgan residents who have lived in their home for at least 25 years and plan to stay there indefinitely. County Assessor Janell Walker introduced the proposed program to Morgan County commissioners at their Sept. 3 meeting.

If approved, the program would benefit residents 65 and older who live in a home on one acre or less (so agricultural property is not included), have no income-producing properties and have a household income of less than $50,000 a year. Those who qualify would receive a tax credit of up to half of their property taxes or a maximum of $1,186, whichever is less, along with a tax credit of 20 percent of the fair market value of their home. The program would cost Morgan County about $54,000 in unreceived taxes each year.

A state tax relief program known as Circuit Breaker already offers property tax relief for renters and homeowners who qualify but the income threshold for that program is $40,000 a year.

“We have been working together trying to get some information on doing a homestead credit which would still go with the Circuit Breaker but basically just extend it,” Walker said. “It would help those people that basically are just over the threshold of being able to obtain the Circuit Breaker. We do not want to lose our residents that have been established in Morgan County and especially in Morgan City so this was our thought of making sure maybe we could help and get some of these abatements for those people that can't really support themselves on just Social Security and small pensions.”

The commissioners seemed to view the proposed program favorably.

“Overall, I think it’s a good idea,” Commission Chair Mike Newton said. “I want to try to protect those who live in the community and may have a difficult time being able to afford to continue to live in the community. It looks like what we’re talking about is a $54,000 difference from the current abatements to what could be, based on our projections, which I don’t think is a tremendous amount.”

“It’s very likely that folks who are 65 and older and would meet these requirements are probably to some degree demanding less services from the county than some others, at least from the school district for sure,” he added.

The county should consider a deferral rather than a tax credit if the program recipients’ family would inherit the home and would benefit from the proceeds, Commissioner Blaine Fackrell said. Fackrell’s reasoning was that the tax burden would have to be borne by other taxpayers, he said. “It’s not fair for everybody in the county to have to pick up the bill.”

If the inheritors planned to live in the home, then maybe the deferral would not be needed, he said. There is already a state property tax deferral program, but it is only for individuals 75 and older, and according to her research, it is not utilized very heavily, Walker responded.

Commissioner Matt Wilson saw the situation differently to Fackrell. 

“I feel personally that these people have been paying property taxes, and their impact is very small on our community, and they’ve paid it for years now many, many, many, years helping other individuals so we can pay it forward,” he said. “We don’t have to beat them up over it.”

At the end of the discussion the commissioners gave Walker the go ahead to work with the county attorney’s office to develop an ordinance that could be added to the city code. Once that is done, the ordinance will go back to the commission for its approval. If it passes, the city will send out notices to those residents who may qualify for the program inviting them to apply for it. λ

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