The plight of property taxpayers has been a recurring theme in the debate over Alamance County’s annual budget. But regardless of what, if any, additional burden the county’s next spending plan will impose on property owners, the county’s elected leaders have some consoling news for those who genuinely can’t shoulder the load.
During their latest meeting on Monday, the county’s board of commissioners called on the county’s new tax administrator Brad Fowler to explain the ins and outs of a “homestead exemption” that can substantially reduce the property tax bills of low-income seniors.
Fowler explained that this statewide program enables people over 65 with incomes no greater than $37,900 a year to cut their property taxes in half.
“There is an application process that needs to be adhered to,” Fowler elaborated during his presentation. “[The application period] is between January 1 and June 1 of each year…and 21 percent of our 65-years-old-[plus] residents could probably qualify for this program.”
The county’s tax administrator added that people who don’t meet this income requirement can potentially take advantage of another program – a so-called “circuit breaker” provision – to defer a portion of their property taxes. This program caps the property tax liability for those who earn up to $56,850 a year at 5 percent of their annual income. Fowler cautioned, however, that this initiative merely defers the excess taxes for up to three years. He added that if the property is sold or passed on to an heir upon the death of the original owner, a bill will come due for three years of deferred taxes – with interest.
Fowler conceded that this circuit breaker provision may not be all that enticing for people who are struggling to make ends meet. He nevertheless stressed that there’s a bill making its way through the General Assembly that, if approved, would extend the homestead exemption to people who don’t currently meet the income requirement.
“We have to do something because those income thresholds just don’t work anymore,” he went on to insist. “[The proposed change] would bring approximately 300 more households into the program, and we now have about 2,000.”
In the meantime, Fowler encouraged seniors who meet the current income threshold to pick up an application for the homestead exemption. Although the deadline for this year’s application period elapsed earlier this week, they can still get in the queue for next year.
“We want you in this program if you quality,” he added.
