Sussex County adjusts tax breaks based on assessment update

Tax breaks for low-income seniors and non-veterans with disabilities were updated March 25 by Sussex County Council to adjust for sharp increases in property assessments resulting from the recent countywide revaluation.

The number of years that someone has to live in a home to be eligible for either program increased from three to five years, said Sussex County Finance Director Gina Jennings. 

The countywide property revaluation increased the total value of property in the county by 20 times since the last update in 1973. The change in value for each individual property varied.

The discounts equal about half of the average assessments in 1973 and today.

The income level changes for the non-veteran disability program were increased to match the state 65 Program, from $3,500 to $6,000 for a single person and from $6,500 to $7,500 for a married couple. The income does not include Social Security benefits, railroad retirement benefits and pension benefits from the applicant's disability.

This does not affect breaks for owners of more than 25,000 properties who participate in the state 65 Program, which grants them a $500 deduction on their school taxes or the disabled veterans program, Jennings said.

“Essentially, the goal of both of the ordinances is just to make sure that everybody who qualifies for the programs today qualifies for them tomorrow when the reassessment takes effect, and also the end results will be very similar with their tax bill,” Jennings said.

“Today, if a taxpayer qualifies, we deduct $12,500 of their taxable assessment,” Jennings said. “Obviously, with the assessments going up, $12,500 is not going to make much of a difference to them now. So we had to come up with a new number, which is the $229,000 to make it very similar to what happens this year.” 

In response to a question by Council President Doug Hudson, Jennings said if only one of two spouses is eligible for the senior discount, it applies to half of the property value, if both are on the deed.

No comments were offered during public hearings on the two laws and they were unanimously approved by council.