Tax Office Glitch Startles Seniors

Melissa Bailey Photo

When she opened her tax bill this year, an 81-year-old Wooster Square woman found out that her tax freeze” had thawed.

The taxpayer, who owns a six-family home, is one of about 900 seniors who participate in the city’s elderly tax freeze program — and one of hundreds who received an unexpected hike in tax bills they have to pay this month.

The program, introduced in 2007, affects homeowners who’re at least 70 years old, have lived in New Haven at least 10 years, and earn under $50,000 a year. Their tax bills are frozen at the same amount as when they entered the program.

The Wooster woman (who asked not to be identified) said she has been participating in the program for several years. This year, she was surprised to see a small spike in her property taxes, from $3,000 to $3,157 for the first six months of the year.

Where are we supposed to get this money?” asked the woman, who lives on a fixed income.

Mayor John DeStefano explained the tax glitch at a press conference Thursday coinciding with the start of the new fiscal year, and the day people’s taxes came due.

He said the problem began last year when the city tax assessor made a calculation error” on the tax bills of 394 seniors who participate in the tax freeze program.

Those seniors actually saw their taxes decrease that year, according to Tax Collector Maureen Villani. Those seniors got a benefit that they weren’t entitled to, she said.

Villani said the assessor looked at the wrong baseline. When a senior signs up for the tax freeze, the tax bill is supposed to be frozen in time at that point. However, some seniors were given a lower bill, equal to what they would have paid in prior years, before the property revaluations were phased in, Villani explained.

The amount of money the city lost last year due to the screw-up was not available as of press time. The benefit from the tax freeze is capped at $2,000 per person.

The city won’t try to recoup the lost money, DeStefano said, but it did correct the tax bills for this year.

We’re going to adjust them back to where they were when they qualified,” Villani said.

As a result, when those seniors got new tax bills at their homes last month for the next fiscal year, they saw an increase in their taxes.

DeStefano admitted the situation has caused confusion: A freeze should be a freeze, not an increase,” he conceded. However, he said in most cases, the new, higher amount is correct.

A note from the tax collector sent home to seniors explained another reason for the glitch.

This bill may show an increase in taxes from the 2008 Grand List,” the note advised. The increase came because last year, a state benefit was not considered when calculating the tax, resulting in a higher local benefit and a lower tax amount.”

The note directed questions to the tax assessor at (203) 946‑6047.

DeStefano said the city will do its best to explain the increase.

The screw-up has sent a new wave of complaints into the city tax collector’s office. Wooster Square Alderman Mike Smart said 10 of his constituents have contacted him about the error.

The Wooster Square taxpayer said she’s been calling the tax collector’s office for an answer, but the phone just rings and rings.” No one answers.

With her oil bills rising, I can’t save a dollar,” she said.

She said she’s planning to walk to City Hall Friday to sort out the tax problem.

This mayor,” she exclaimed. He just comes into your pocket and takes your money.”

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