Voters to decide on tax break for seniors, veterans

PALMER — What started as an across-the-board tax cut for Mat-Su Borough property owners on their primary residences morphed into an exemption for seniors and wounded veterans Thursday at a Mat-Su Borough Asssembly meeting.

There is already a state-mandated exemption for senior citizens that counts as exempt the first $100,000 of a home’s value from property taxes.

The borough ordinance that will go to voters will consider a measure on the ballot in October that would boost the exemption to $120,000 using a borough rebate.

The ordinance applies to either a person age 65 or older, “a disabled veteran, including a person who was disabled in the line of duty while serving in the Alaska Territorial Guard” and widows or widowers of people who are either of those things.

In a column on the Opinion page published in the Mat-Su Valley Frontiersman Aug. 5, Borough Mayor Larry DeVilbiss wrote there is a state provision that allows municipalities like the borough to offer exemptions to its residents. He proposed an exemption on everyone’s primary residence.

“A tax exemption will give some measure of economic relief and help families that aren’t faring the global recession so well stay in their homes,” DeVilbiss wrote.

A fiscal note attached to his initial ordinance pointed out that the change would mean $7.2 million less paid in taxes to the borough.

But by the time of the borough assembly’s Thursday meeting, the ordinance had been rewritten as an exemption on disabled vets and the elderly.

Borough finance director Tammy Clayton said the new figure for what it would cost the borough is more like $951,000.

The assembly seemed to like the change.

“This is affordable,” Colver said. “This will help keep them in their homes.”

Assemblyman Vern Halter, who proposed the big change, said that senior citizens have already paid quite a bit of taxes.

And though the measure eventually passed without any objection and wouldn’t take effect until voters have their say Oct. 2, Assemblyman Warren Keogh sounded a note of caution.

“We’ve spent down our reserves,” he said.

While in 2010 the borough had $14 million in reserves, these days it’s more like $5 million. Keogh said he doesn’t think that’s sustainable. Eventually, the borough is going to have to do something about it, he said.

Contact reporter Andrew Wellner at andrew.wellner@frontiersman.com or 352-2270.