Carmel looks to expand senior tax break 

More senior homeowners in the town of Carmel could see meaningful reductions in their property tax bills under a proposed amendment that raises income thresholds for the town’s senior citizens’ exemption. 

The Town Board held a public hearing on Wednesday, Feb. 18, on proposed changes to Chapter 137 of the town code that would expand eligibility for the senior property tax exemption and adjust the sliding income scale used to determine how much of a home’s assessed value is exempt from taxation. 

Under the proposal, homeowners age 65 and older would qualify for exemptions ranging from 5 percent to as much as 65 percent of their assessed value, depending on income. The revised scale would allow residents with annual modified adjusted gross incomes up to $58,400 to receive at least a partial exemption. 

Currently, the exemption applies to qualifying seniors under state Real Property Tax Law provisions, but the amendment refines the income brackets and exemption percentages applied locally. 

For eligible retirees on fixed incomes, the change could translate into hundreds — and in some cases thousands — of dollars in annual savings, depending on assessed value and income level. The tradeoff is that any reduction in taxable value shifts more of the levy burden onto other taxpayers unless offset by growth in the tax base or spending adjustments. 

Town officials have not indicated the projected fiscal impact, but expanding income eligibility typically increases the number of homeowners who qualify for relief.