March 20, 2007 Contact: Sue Baker
For Immediate Release 738-2000
Avedisian, Tax Review Committee seek
to amend circuit breaker tax credit legislation
WARWICK – Mayor Scott Avedisian has introduced, through Council President Joseph Solomon, an amendment that would increase the circuit breaker tax credit range to $600 - $1,000.
The increase is one of the recommendations of the Tax Structure Review Committee, which Avedisian established by executive order last August. The group, created a year before laws governing the city’s tax system expire, was charged with examining the three tiers – residential, commercial/industrial and tangible – to determine if that system “continues to provide financial parity” between commercial and residential property owners, or if a different structure should be established, Avedisian said at the time.
A report of the group’s full recommendations will be submitted to the Mayor for review within the week, according to Tax Collector/Acting Assessor Ken Mallette, who chaired the committee.
The current tax credit range is from $400 to $800 and is offered to income-eligible homeowners who are 65 or older or 100 percent disabled and have lived in Warwick for at least five years. Applicants must own and live in the home to which the credit will be applied.
If the City Council approves the measure – which is up for first passage consideration at the April 9 meeting – the new schedule of credits would be applied a follows: Households with a total income range of up to $13,800 would be eligible for $1,000 tax credit. Those in the $13,881-$15,614 range would qualify for $900 in relief; from $15,615-$17,350 the credit would be $800, from $17,351-$19,086 a total of $700 would be credited and those households with a total income of $19,087-$20,820 would be eligible for a $600 credit.
“The Tax Review Committee determined that the credit range had not been changed since 1997,” Avedisian said. “Yet, the cost of living has increased in the past 10 years. This will provide some benefit and relief to those residents who are most in need of assistance.”
Those whose current total household incomes are $20,820 and lower may be eligible for the tax credit amounts already in place. Individuals who are not receiving the credit but believe they may qualify are encouraged to contact the Tax Assessor’s Office at 738-2000, ext. 6016.
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