Village of Hastings-on-Hudson has scheduled a public hearing on two proposed laws on Tax Exemptions, one for Volunteer Firefighter/Ambulance workers and one for Senior Citizens. The public hearing is on Tuesday, March 5, 2024 at 7PM, 7 Maple Ave
Background: New York State has revised the Real Property Tax Exemption for Senior Citizens with Limited Incomes. The revisions require the Village to review our local law. Governments and school districts in New York State, each independently, can opt to grant a reduction on the amount of property taxes paid by qualifying senior citizens by reducing the taxable assessment of the senior's home by as much as 50%.
To qualify, seniors generally must be 65 years of age or older and meet certain income limitations and other requirements. For the 50% exemption, the law allows each county, city, town, village, or school district to set the maximum income limit at any figure between $3,000 and $50,000.
In addition, there are three sliding-scale options that municipalities may adopt to provide a benefit to seniors with incomes greater than the local maximum. Under these options, qualifying seniors may receive the exemption if their income is below:
- $55,700 for a 20% exemption,
- $57,500 for a 10% exemption, or
- $58,400 for a 5% exemption.
The Village has already adopted the maximum limit and the sliding scale options described above.
For the purposes of this exemption, income is currently defined as your federal adjusted gross income (FAGI) as reported on your income tax return(s) for the most recent calendar year, subject to certain adjustments.
Current Issue: New York State has recently expanded the options for defining “income” in relation to this exemption. And so the issue we must now consider is which definition of “income” we want to choose for our locality. Outlined in bold below is what we are considering adopting in a new local law.
- Social Security benefits not included in your FAGI are considered income, except where a locality has opted to exclude them from income. The proposed local law will include all Social Security income (including benefits not included in the FAGI) as income for purposes of determining eligibility.
- Distributions from an individual retirement account or individual retirement annuity included in your FAGI are not considered income, except where a locality has opted to include them in income. The proposed local law will include IRA distributions as income for purposes of determining eligibility.
- Medical and prescription drug expenses of an owner that were actually paid for and not reimbursed or paid by insurance may be deducted from income where a locality has opted to allow them to be deducted. The proposed Local Law will allow medical expenses to be deducted from income for the purposes of determining eligibility.
The rationale for making this change to the definition is that residents who are entitled to the exemption have varying sources of income included in their eligibility determination.
On March 5th we will be having a public hearing at the Board of Trustees meeting in Village Hall on the new proposed local law related to the definition of income for the purpose of determining eligibility for the senior tax exemption and would like to hear from interested members of the public. Please join us at 7:00 pm if you would like to speak to this issue.
Proposed Local Law C 2024 - Senior Citizens Exemption
- The Village has the option of reducing the firefighter/ambulance worker exemption percentage. Under the proposed law, a firefighter/ambulance worker will continue to be eligible for a 10% exemption.
- The Village has the option of requiring a minimum service period anywhere between 2 to 5 years. The Village’s existing law requires 5 years of service. Under the proposed law, a firefighter/ambulance worker will be eligible for the exemption after 2 years of active service.
- The Village has the option of allowing a lifetime exemption to volunteers with at least 20 years of service if they maintain their primary residence in the County. Under the Village’s existing law and the proposed law, firefighters/ambulance workers are entitled to the lifetime exemption.
- The Village has the option of allowing un-remarried surviving spouses of volunteers already receiving the lifetime exemption to retain the exemption. The Village’s existing law does not address this. Under the proposed law, surviving spouses of volunteers with a lifetime exemption may retain the exemption.
- The Village has the option of allowing un-remarried surviving spouses of a member receiving the exemption who died in the line of duty with at least 5 years of service to retain the exemption. The Village’s existing law does not address this. Under the proposed law, un-remarried surviving spouses of a volunteer receiving the exemption who died in the line of duty with at least 5 years of service may retain the exemption.
