New Hampshire statute RSA 72:39a sets forth a procedure for establishing qualifications, procedures, and amounts of property tax exemptions for residents 65 and older. At Town Meeting on Tuesday, March 12, attendees will be asked if they wish to adjust the income eligibility requirements. These exemptions were last adjusted at Town Meeting in 2006.

Currently, a single senior is eligible if their income does not exceed $20,800; for married seniors, the limit is $30,300. The warrant article at Town Meeting will propose raising those eligibility limits (and thereby potentially increasing the number of seniors eligible) to $30,000 for single seniors and $40,000 for married seniors.

Currently, to be eligible, a senior’s assets cannot exceed $50,000 (excluding the home in which they reside); the proposed asset limit is $75,000. Assets include, but are not limited to, all other real estate owned, checking and or savings account balances, CDs, IRAs, mutual funds, stocks, bonds, automobiles, and all other goods which are owned and saleable.

Based on the current rules, a qualified senior age 65 to 74 years sees the assessment on their home reduced by $20,000 for a property tax savings of $369. At 75 to 79 years of age, the assessment is reduced by $40,000 for a $738 savings; at 80 years and over, the reduction is $50,000 for a $923 savings. (Savings amounts are based on a tax rate of $18.46.)

If the warrant article passes, each of the assessment reductions mentioned above would be increased by $20,000, resulting in this table of reductions (and tax savings):

• 65 to 74: $40,000 ($739)
• 75 to 79: $60,000 ($1,109)
• 80+ years: $70,000 ($1,294)

In 2012, five Andover residents qualified under the current rules for exemptions totaling $180,000. The exemptions saved the five residents a total of $3,328 in taxes. Assuming 75¢ per $1,000 of assessed value, that savings for seniors added about $2.50 to the tax bill of a typical $200,000 property in Andover last year.

Under the proposed new rules, those same five residents would receive $300,000 in exemptions for a total savings of $5,547 on their total tax bills. That would add about $4.16 to the tax bill of a typical $200,000 property in Andover.

If the warrant article is approved, we don’t anticipate the number of qualifying residents to change significantly next year.