Many elderly people in New Hampshire experience financial difficulties staying in their homes. Fixed incomes, rising living expenses and increasing property taxes are forcing people to choose between food or staying in their homes. In 1996, New Hampshire passed a law allowing towns and cities to adopt an elderly property tax exemption for people age 65 and older. The exemption allows low-income homeowners over the age of 65 who qualify to lower their property taxes.
RSA 72:39 A and B defines the requirements of eligibility. The taxpayer must have a net income less than $13,400 and assets of less than $35,000. A town can, and many have, voted to increase those amounts. Unfortunately, a number of towns in New Hampshire have not. As a frame of reference, for 2024, the official poverty threshold for a single person age 65 or older was $15,060. Yes, the poverty threshold is higher than the eligibility for the elderly exemption.
Why is this important? According to a Bankrate study, homeowners are paying more than $18,000 a year on property taxes, homeowners’ insurance, maintenance, energy and various other expenses linked to owning a home. And as homeowners know, those expenses are increasing.
Many towns have increased the eligibility amounts to reflect the changes since 1996. Some, including Warner, have increased the income limit up to $50,000, in line with minimum living wage calculations, with the goal of keeping elderly and low-income folks in their homes.
The elderly property tax exemption has more importance with the significant increase in housing prices. According to conversations with the New Hampshire Department of Revenue and assessors, during the last few years, lower cost housing values have increased three to 10 times. For example, in Warner, a mobile home owned by a person over 65 years old in a park was assessed for $13,200 in 2020. The same mobile home was recently assessed by the town for $58,000. Another mobile home on one acre of land sold for $88,000 in 2010. It sold for $260,000 in 2023.
How much does the elderly exemption cost taxpayers? In Warner, the 2023 exemption resulted in the redistribution of $57,803 or less than five cents per $1,000.
Keeping older homeowners in their homes has many benefits. For one, they are able to preserve their independence — a diversity of age groups enriches a town. In addition, many older people have nowhere to move to and may require subsidized housing if available. If a low-income elder must sell their home and move to a rental, according to New Hampshire Housing, the 2024 statewide median gross rent (including utilities) for two-bedroom units was $1,833 a month.
What can you do? Ask your town assessing office what the elderly property tax exemption amounts are. If they need updating, citizens can submit a citizens warrant article for town meeting with updated amounts. Another option is to call on the Select Board to submit a warrant article that updates the exemption amounts.
You can help address the housing crisis facing low-income elderly homeowners. If your towns’ elderly property tax exemption needs to be updated, get a warrant article submitted for the town meeting, but do it soon.
David Carle lives in Warner. He helped make recommendations to the town to raise the elderly property tax exemption eligibility requirements.