Granting an age exemption would mean a loss of more than $2 million in taxable property value for the city; however, given the city’s overall $100 million property value, City Manager Rachael Tabelski says the timing seems right.
City Council is looking at giving property owners age 65 and older who meet certain income limitations a greater tax exemption on their home, similar to what Genesee County has already adopted. The county’s resolution increased the exemption levels for county tax, and “in response, the city would also propose to increase the income levels of individuals to qualify for the exemption,” Tabelski said.
“So to be in line with the county — we haven't changed the limit since 1994 — I'm bringing it to you for your discussion and decision,” she said during this week’s conference meeting at City Hall.
She has recommended adjusting the scale to mirror the county’s income limits for homeowners 65 and older with incomes at or below $23,800 for a 50% property tax exemption and capping off at $32,199.99 with a 5% exemption.
Council briefly discussed this option previously, and Tabelski brought it back to the table to potentially include in future budget talks. She said it would become effective in the 2025 assessment roll year.
Exemptions would be 50% for a maximum income of up to $23,800, slide down to 45% for up to $24,799.99, and continue decreasing by 5% increments while the income level increases about $1,000 each time until it hits the highest income of $32,199.99 for an exemption of 5% (see table below).
Exemption Minimum Income Maximum Income
50% $0 $23,800.00
45% $23,800.01 $24,799.99
40% $24,800.00 $25,799.99
35% $25,800.00 $26,799.99
30% $26,800.00 $27,699.00
25% $27,700.00 $28,599.99
20% $28,600.00 $29,499.99
15% $29,500.00 $30,399.99
10% $30,400.00 $31,299.99
5% $31,300.00 $32,199.99
The city’s current sliding scale for property tax exemptions begin with an income of $16,500 or below for the 50% exemption, and tops out at $24,000 for 5% exemption.
Council President Eugene Jankowski Jr. said he was for this exemption. He emphasized the importance of approving this plan as another way for people to retain their own properties.
“Not only is it important to keep in line with the county, but more important to help people in the city; this might make the difference of whether they’re able to stay in their house, so I think we should do all we can,” Jankowski said.
A councilman asked how this would impact city revenue.
“We’ll lose up to $2.6 million. So that is your assessment value, so it’s not pure revenue, it’s what we assess properties at,” Tabelski said. “So this exemption would take $2.6 million out of that value. But in the last year, the assessor had reported to us that we have $100 million in taxable value from 2023 to 2024, so this would be a year to go ahead and do that. So the value that came in is not only reassessments of homes, but also new businesses and improving businesses.”
The consensus of the group was to move forward with the exemption.
