City Council members increase homestead exemption for 65 and older, disabled individuals
City officials and community leaders are looking for ways to stem the tide of possible effects of the "Silver Tsunami." One tool intended to help the 65 and older and disabled demographic was approved March 20 when City Council agreed to increase the city's homestead exemption.
"In the end I think everyone could agree that our seniors and the disabled need and deserve some tax relief when we can provide it," Councilman Mike Martinez said.
Councilman Bill Spelman voted against the measure, making the tally 6-1. City Council increased the exemption for those who qualify as 65 years of age or older and those who are disabled from $51,000 to $70,000. The increase matches Travis County's exemption for the same demographic.
The exemption lowers the taxable value of a qualified property, which in turn lowers the amount of property taxes to be paid.
According to numbers presented by Ed Van Eenoo, deputy chief financial officer for the city of Austin, the increase in the exemption will lead to about $3.2 million in lost revenue in fiscal year 2015. The additional exemption also will save qualified individuals an average of $95.51 per year and raises the taxes on the owner of a median-valued home by $6.79 per year.
Martinez said he believes the council can make up the deficit through the yearly budget process.
"I think that's the kind of hard work that needs to be put into every single budget, and I think that's what you'll see so that $3 million won't necessarily manifest itself in a tax increase on others," Martinez said.
Other taxing jurisdictions in the area, including Travis County, Austin ISD and Austin Community College, also have senior and disabled exemptions that can be assessed on an individual's property value.
Marya Crigler, chief appraiser with the Travis Central Appraisal District, said for an individual to apply for a 65 and older or disabled homestead exemption, he or she must fill out and submit an application along with a copy of his or her driver's license to the Appraisal District. The address on the driver's license must match the property for which they are seeking the exemption. Applications are available on the Appraisal District's website at www.traviscad.org.
"This council clearly sees that there are folks in our community who are needing some assistance in terms of tax relief and that we're willing to tighten our belts and get to work on the budget and figure out how to do that," Martinez said.
Other areas of assistance
Martinez said raising the tax exemption for that particular demographic was not an easy decision, and many on City Council wondered about other ways to assist the elderly and disabled as the need becomes greater.
The Mayor's Task Force on Aging highlighted a list of recommendations to help the community and city officials address the needs of a growing elderly population. Some of the recommendations include age-inclusive policies and a focus on affordable housing, healthy living and home-based supportive services.
Jennifer Scott, director of the Area Agency on Aging of the Capital Area, served on Mayor Lee Leffingwell's Task Force on Aging. The expected growth rate of the 60-and-older demographic in the 10-county Capital Area Council of Governments service area—including Bastrop, Blanco, Burnet, Caldwell, Fayette, Hays, Travis and Williamson counties—is 96.6 percent between 2015 and 2030. In the capital region, the over 60 population is expected to more than double from about 243,000 in 2010 to about 634,000 in 2030.
"Austin is really considered a young city, and it's not totally prepared for the aging demographic," Scott said.
Raising more awareness about issues facing the growing elderly population is key to tackling the situation, Scott said.
"I think it's [important to have] an education for both the general public as well as our advocates that advocate for senior-care issues in order to help drive city policy and county policy," Scott said. "[It is important] to bring a greater awareness of the long-term issues related to the aging population."
Scott also noted the need for more professional and family caregivers as another concern as the elderly population increases.
Another organization that is aimed at serving those in need, including the disabled and elderly, is Meals on Wheels and More. Charles Cloutman, MOWAM vice president of home repair, said an area in which those on fixed incomes can use assistance is home repair. He said it can be much cheaper to help the elderly stay in their homes rather than move them into some type of assisted-living situation.
"That's one of the reasons we've justified spending money on home repair is to keep them in their homes," Cloutman said. "It's really a inexpensive fix to keep their houses from killing them and make their houses accessible."
From a 2009 survey, Cloutman said there were about 20,000 low-income homeowners in the city of Austin that need home repair. Among MOWAM's clientele, Cloutman said there are more than 1,300 needing home repairs.
MOWAM is a nonprofit that supports several programs, including home repairs, delivering meals, grocery shopping, pet care and congregate meals.
"We really try to bring everything to bear to help someone out," Cloutman said.
Some other local organizations with an aim of assisting the elderly and those in need include Family Elder Care, Hand of Austin, Austin Groups for the Elderly—or AGE of Central Texas, Capital City Village and The Home Option.
