April 25, 2011

EH OFFICIAL SEEKS LEGISLATION TO HELP SENIORS PAY TAXES

By Al Hemingway, Journal Inquirer

EAST HARTFORD — When Town Council member Susan Skowronek discovered that seniors on fixed incomes in town were going to banks to obtain loans to pay their property taxes, she was astounded.

After some research she found out why. Banks are offering loans at an annual interest rate of 3 percent, compared to the 18.5 percent that the town has to charge for overdue taxes under state law.

East Hartford has a good reputation for working with residents who have difficulty paying their taxes, Skowronek said.

Skowronek added that the town has an installment option in place that helps residents but they have to charge the higher interest rate because it is mandated by the state.

Skowronek said that if municipalities could charge lower interest rates to qualified seniors, that money could be returned to the town coffers.

Although she knew that the deadline for proposing new legislation had passed, Skowronek sent letters to the East Hartford legislative delegation asking for their support for a proposed bill for next year.

“I want to implement a bill or make an amendment to the existing law that lowers the interest rate for qualified seniors so that paying their town interest on delinquent taxes, or what would be delinquent taxes, is more cost-effective than paying interest to a bank, Skowronek said.

On April 14, Skowronek received a positive reply from Rep. Henry Genga, D-East Hartford, who said paying the town on a monthly basis at a lower interest rate is a “win-win for both the town and its senior citizens on fixed incomes.”

Genga said that state and federal guidelines are already in place for qualifying seniors, 65 years of age and older, on fixed incomes.

“Right now the town gets the money up front from the senior who has to borrow it,” he said. “The bank gets the interest.”

Municipalities cannot get more than 1 percent when they invest the money in today’s sluggish market; this way they can at least get 3 percent, Genga explained.

Details of the proposed bill would have to be worked out, but Genga said that he believes that the state’s municipalities should have the option of whether they want to implement the plan.

This new bill would benefit qualified seniors and towns throughout the state, Skowronek said.

“As it stands, taxpayers and towns are scrambling, while banks keep getting richer,” she added.