Opinion: A look at the Elderly Property Tax Exemption

“According to the MIT Living Wage calculator a single adult with no children in New Hampshire needs to make about $49,000 for a living wage. According to the Center for Medicare Advocacy, in 2023 half of the people on Medicare lived on incomes below $36,000 per person and had less than $104,000 in savings.”

“According to the MIT Living Wage calculator a single adult with no children in New Hampshire needs to make about $49,000 for a living wage. According to the Center for Medicare Advocacy, in 2023 half of the people on Medicare lived on incomes below $36,000 per person and had less than $104,000 in savings.” Pixabay

By David N. Carle

Published: 06-11-2024 4:03 PM

David N. Carle lives in Warner.

‘Median sales price of single-family homes in New Hampshire surge” is a headline theme these days, with undercurrents of the lack of affordable housing. A shortage of new houses, high mortgage rates, and zoning laws seem to be blamed. The lack of political desire in the State House to address housing should also be included in the list. Yet, little is offered to help certain sectors of the population with the cost of housing.

In 2000, New Hampshire passed a law allowing towns and cities to adopt an Elderly Property Tax Exemption for people aged 65 and older. The town could vote to exempt an amount of the assessed value of a single-family home owned by a person 65+ contingent on their level of income and assets.

The property owner must apply for and supply the necessary documents to receive the exemption. The list of exemption values by town/city can be found at revenue.nh.gov/mun-prop/property/exemptions-tax-credits.htm.

As stated above, it is up to each town to set the amount of the exemption, along with the income and asset limits. Looking at the list, the vast majority of towns and cities have not updated their Elderly Property Tax Exemption since the law was enacted. The town I live in, Warner, passed the exemption in 2006 when the median single-home value in New Hampshire was just over $200,000.

Despite the more than doubling of the median value, the exemption amounts have not changed. But expenses have.

According to the MIT Living Wage calculator (livingwage.mit.edu) a single adult with no children in New Hampshire needs to make about $49,000 for a living wage. According to the Center for Medicare Advocacy, in 2023 half of the people on Medicare lived on incomes below $36,000 per person and had less than $104,000 in savings.

The Elderly Property Tax Exemption is not for all people aged 65 or older. It is for people who are 65+ in the lower income brackets with limited assets and want to stay in their own homes. In Warner, 25 properties qualified for an elderly property tax exemption last year, which still requires the property owner to pay property taxes, just less.

There are two actions needed. First, towns and cities should review their Elderly Property Tax exemption amounts. The amounts of the Elderly Property Tax Exemption can be found through the town/city assessor’s office or at the Department of Revenue (address above). If people feel a change is needed, a warrant article needs to be presented to voters at town meeting.

Second, the legislature needs to amend the law. Under the present law, items listed as assets include a car. For many people in New Hampshire, a car is a necessity, needed to go to the doctor, to buy food, and to vote. In some communities including the value of a car as an asset can disqualify a person from receiving an exemption. Another example is if a house is on a two-acre lot but only one acre is required under the zoning law, and the lot cannot be subdivided. The second acre must be included as an asset at market value.

Creating the legal structure for enforceable and accountable affordable housing in New Hampshire could take time. There are measures in place that can help people afford their homes, one of which is the Elderly Property Tax Exemption. Check what your town or city has set for exemption levels. If they need to be updated, all it takes is an article on the town warrant and a vote at town meeting. It could mean the difference between a person being able to stay in their house or being forced out.