Tax Office Glitch Startles Seniors

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by Melissa Bailey | Jul 2, 2010 6:37 am

(14) Comments | Commenting has been closed | E-mail the Author

Posted to: City Hall, Legal Writes, Wooster Square

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.”

Comments

posted by: john on July 2, 2010 7:11am

i must simply note that the photo’s implication (that the tax collector is the city’s ATM) was not lost on me. apparently, they think have a generous line of credit. just wait til they see the overdraft fees…

posted by: Really on July 2, 2010 7:37am

This lady owns a Six family house and she needs a tax freeze. Sounds like she’s taking advantage of a loophole in the program. It should be for only single family houses.

posted by: Q on July 2, 2010 8:35am

So wait… seniors got a tax break in an election year, and now the error is being corrected because the city needs the money? Come on.

posted by: Threefifths on July 2, 2010 8:35am

posted by: Really on July 2, 2010 8:37am
This lady owns a Six family house and she needs a tax freeze. Sounds like she’s taking advantage of a loophole in the program. It should be for only single family houses

Not true.I know people like that who are stuck
with this type of house because they can.t sell it because no new ownner can afford to pay the property tax on the house.

posted by: Bill on July 2, 2010 8:52am

I’m assuming six family home is a typo otherwise her taxes would be more than $6000 per year.

posted by: Doyens on July 2, 2010 9:15am

Drive by assessments. Undisclosed industry standards. Incorrect calculations. City foreclosures without notifying aldermen. A non-functioning tax appeal process. The list goes on and on. After all these years, how can so many screw-ups in the tax assessment and tax collection departments be happening? Mismanagement, in-effective management and not paying attention to the details. Even the explanations defy explanation.

posted by: JON on July 2, 2010 1:26pm

WHAT EVERYONE IS FAILING TO REALIZE HERE IS THAT THESE TAX PAYERS “got a benefit that they weren’t entitled to, she said.”

REMEMBER THIS BEFORE PLAYING THE BLAME GAME. THOSE SENIORS GOT TOO MUCH OF A BENEFIT AND THE CITY IS NOT ASKING FOR IT BACK. THE CITY IS JUST CORRECTING THE ERROR THIS YEAR.

posted by: yes but on July 2, 2010 2:17pm

Yes but don’t you realize how suspicious it seems? A state benefit previously ignored is now included in the assessment. The city’s tax collecting organs have been through several credibility-losing incidents. You expect people to trust the tax office?

posted by: JB on July 2, 2010 3:56pm

Hey, according to the tax office, my car’s value goes up year to year- so why not tack a little extra on to senior cit’s bills too? Pretty soon, the city will be going door to door and begging.

I keep telling my spouse we have the best (and most expensive) trash pick up service in the country, so just calm down about the tax bills. It’s definitely worth it.

The picture is priceless.

posted by: NHresident on July 2, 2010 6:20pm

this is a bunch of bull….They say they used the wrong calculation for assessing car values last year and corrected it this year. Now used cars are worth more than new cars because of the demand…BS BS BS. Now someone made a mistake last year on the calculations on the elderly freeze program so they corrected it this year. It sounds like a lot of people should have been fired from the assessors office. That would have saved the city money. This city is a big joke.

posted by: Morris Cove Mom on July 3, 2010 11:22am

Wow, another one of the Mayor’s plans that has backfired. Not surprising.

He came up with the senior tax freeze idea to get the votes of all the seniors in New Haven, but I’ll bet was never going to freeze them for more than a year or two, anyway.

If this woman owns a six-family house, and is living on a fixed income, she should be able to afford to pay any tax bill, no matter what the increase.

Even if that means raising her tenants rents slightly to cover the difference. Everyone needs to take responsibility, not just the younger residents. All of us.

posted by: Concern landlord on July 3, 2010 5:51pm

To BILL the senior tax freeze is half there tax bill, so her bill would be 6000.00 but she went and registered for the senior tax freeze so now she pays 3100.00 not a bad deal. But it’s true if she has a 6 family home and she has to live in one of the apartments to get the tax break, so that leaves her 5 apartments to rent at 850.00 to 1000.00 a month. Thats per month 4500.00 at least, she could pay her tax bill in her first month, and she’s complaining? I would investigate her….. Where is her 11 months of rent totaling at 49500.00?
My belief is that someone is using their mother for the tax freeze. ...

posted by: Concerned Citizen on July 5, 2010 7:04pm

There are many senior citizens who are really on fixed income and cannot pay additional taxes; this 81 year-old is not one of them. She owns a six-family brownstone; she get thousands of dollars in rental income. There is no freeze on the amount she can charge for rent. Isn’t rental income earnings for her?

Why should other hard-working NH people have to pay her share of the tax increase? There are many people in Wooster Square who are politically connected and who rip off the City.

She is complaining about a $157 increase! What about the $3,000 she is getting in free taxes along with all of the other perks she gets from the city and state?

The fact that she is 81 years old does not make her poor; no one who owns a six-family brownstone in Wooster Square is poor; regardless of the age. And yes, the only six-family houses in Wooster Square & Warren St are brownstones, or the row houses on Academy St. Not even a one bed-room unit rents for less than $850; several are rented to family members who have excellent paying jobs with the city or the State. The 2 B-R units started at $1,250 and go to $1,700; this was in 2006; they are likely higher now….

posted by: Brenda on July 7, 2010 3:41pm

First of all, I am happy to know that senior hoeowners get a tax break. However, if you own a six-family home you are receiving rental income. Why do you need a tax break.

Tax breaks should be given to senior with single family homeowners who are struggling to make ends meet that do not have additional income, such as rental income.

How much property tax does Yale University pay, if any? I love the school and what it represents; the city need more tax revenues so it would be nice if Yale could make a contribution to the tax roll.

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