By JOSEPH EDGERTON
jedgerton@yourneighborhoodnews.com
After recusing themselves from a town council vote on veteran tax credits, Councilors Andy Egan and Paul Roy supported an increase in tax exemptions for the elderly.
“Approving the maximum amount is the least we can do to recognize those who have served our country,” said Roy.
Egan, who is among the town’s veterans receiving a tax credit, said the increase is overdue.
“There are 861 veterans and surviving spouses in Bedford,” Egan said. “The town council has been provided a sheet that shows 75 towns in New Hampshire which give the full exemption.”
The difference between an exemption and a tax credit is an exemption is a reduction on the property tax value, while a tax credit is a reduction in the calculated tax due on a property.
Exemptions for senior citizens aged 80 years and older also underwent a change.
“By 2025, one-quarter of New Hampshire will be over 65,” said Town Assessor Bill Ingalls. “There will come a time when the state will have to take a hard look at this.”
Town councilors voted to increase the senior exemption from $52,000 to $100,000, effective 2007. Currently, the only town with a lower amount is Goffstown, which has a senior exemption of $40,000 for the 80-plus age bracket.
Town Manager Keith Hickey reported on veterans who are eligible for the credit and the annual amount given by Bedford.
The 861 veterans and surviving spouses receive a total of $86,100, or $100 per person. The 18 disabled veterans receive credits of $1,400 each, or $25,200 annually.
“A few years ago, the maximum amount changed from $100 to $500 per year,” said Hickey. “My suggestion is to move up the credit annually.”
The plan approved by the town council calls for the credit to be increased to $300 in 2007, $400 in 2008, and $500 in 2009.
Ingalls said there will be a minimal impact on the tax rate because the increase is gradual and the number of veterans has declined steadily since 2003, when their numbers peaked at 905.
Bedford resident Cmdr. Pat Graham said of the 127 members in the Veterans of Foreign Wars post, 51 live in Bedford.
“The increase will make a difference in the tax rate, but I still think it’s something we ought to consider,” Graham said.
Councilor Kevin Keyes motioned to increase the exemption to the full amount permitted by the state over the next three years.
“As someone who did not have the opportunity to serve, I feel more and more gratitude toward those who did serve,” he said. “As a community, we spend millions on road bonds, our schools and athletic and recreation facilities. This represents the bare minimum of what we should be doing.”