TR-2011-51 CH 59 SECT. 5 _ __ _ i
� 1�-� �`5'1 -
��
��
li
��
F�
TR-2011-5(
A RESOLUTION TO ATTACH EXEMPTION AND ASSET LIMIT AMOUNTS FOR SENIOR CITIZENS,SURVIVING
SPOUSES AND SURVIVING MINORS TO THE COST OF LIVING ADJUSTMENT
(SPONSORED BY: MAYOR RICHARD A. COHEN)
WHEREAS, Massachusetts General Law 59,Section 5,Clause 17D(M.G.L. c. 59, §5 cl. 17D) provides that
a City attach a real property tax exemption to the Consumer Price Index by adopting M.G.L. c. 59, §5 cl.
17E;for Senior and surviving spouses; and
WHEREAS,the Consumer Price Index is determined by the United States Department of Labor, Bureau
of Labor Statistics annually; and
WHEREAS, adopting M.G.L.c. 59, §5 cl. 17E provides for an automatic adjustment in the asset limit CP
allowable under the statute based on a Cost of Living Adjustment; and
Whereas,the current asset limits are$40,000.00;and
Cl)
r
Whereas,the current exemption amount is$175.00.
vr
NOW THEREFORE, BE IT RESOLVED BY THE AGAWAM TOWN COUNCIL that the Town of Agawam aegeep?,
General Laws Chapter 59,Section 5, Clause 17E,which authorizes an annual increase in the asset iole
estate) limit for exemptions and the exemption amount granted to senior citizens, surviving spouse4bnd
surviving minors under Generil Laws Chapter 59, Section 5, Clause 17D, by percentage increases in the
U.S. Department of Labor, Bureau of Labor Statistics,Consumer Price index for the previous year as
determined by the Commission of Revenue,to be effective for exemptions granted for any fiscal year
beginning on or after July 1, 2012,
DAIED11-11SZA101 nC-+1r)Wi
2011.
PER ORDER OF THE AGAWAM CITY COUNCIL
�'6u.a I <-- -
K
Donald M. Rhea 1', President
na Id M. Hnea I , President 1017
A ROVED AS FORM AND LEGALITY
CA
Vincent F.Giciscia, City Solicitor
C
MAYORAL ACTION
Received this day of (�hbm , 2011 from Council Clerk.
Signed by Council President this 1511h day of (�'kw 2011.
APPROVAL OF LEGISLATION
By the powers vested in me pursuant to Article 3, Section 3-6 of the Agafa,- �harter, as
'v"
ereby approve the passage of the above legislation on t�is tY day of
, 2011.
-/Oz:
Richard A. Cohen, Mayor
DISAPPROVAL OF LEGISLATION
By the powers vested in me pursuant to Article 3, Section 3-6 of the Agawam Charter, as
amended, I hereby veto the passage of the above legislation on this day of
2011 for the following reason(s):
Richard A. Cohen,Mayor
RETURN OF LEGISLATION TO COUNCIL CLERK
Returned to Council Clerk this VA —day of ) 2011.
Massachusetts Depmmt of Revenue 8V1510170fL0Ca1SerVCe$
NJ�eetKBJ1C6mm&torer RobWG Nunes,DepWComrW.5soner&DireaorofMunicipalAffars
Informational GiAdeline Release
Bureau of Municipal Finance Law
Informational Guideline Release (IGR)No. H-206
February 2011
OPTIONAL COST OF LIVING ADJUSTMENT
FOR
FISCAL YEAR 2012 EXEMPTIONS
(G.L. c. 59, § 5, Clauses 17, 17C, 170/2, 17D, 17E, 41,41B, 41C and 41D)
This Informational Guideline Release (IGR) informs assessors of the cost of living
adjustment(COLA) to be used in Fiscal Year 2012 by communities that have adopted certain local
options for annually increasing the:
• Exemption amount granted to senior citizens and surviving spouses and minors under
Clauses 17, 17C, 17CY2or 17D.
• Asset limits for determining if senior citizens and surviving spouses and minors qualify
for exemption under Clauses 17, 17C, 17CY2or 17D.
• Income and asset limits for determining if senior citizens qualify for exemption under
Clauses 41, 4 1 B or 41 C.
Topical Index Key: Distribution:
Exemptions Assessors
7heDwsimofLocalS&wcesisresponsrftfarovawoofandassistancefoi:mesandtd2*nsinachwwngeqLmblepvpfffy&w&wand&rA:fmiriscaiimtm_qwmw TheDmsw
mgjfxlypL&iM)esIGRsgnftm=lGig§�lineRekase5delBtli7gAeyalanda&wmstrakwpwedL,es)aqdbV
ME"Forested in mwwpalrmwe
Post Office Box 9W ftsraq W a?71*Z69,1"el.677-626-2300,tax 6774X233V hgPYA"Ywmass�qoWdls
Informational Guideline Release (IGR)No, 11-206
February 2011
OPTIONAL COST OF LIVING ADJUSTMENT
FOR
FISCAL YEAR 2012 EXEMPTIONS
(G.L.c. 59, § 5, Clauses 17, 17C, 17C1/2, 17D, 17E, 41, 4 1 B,41 C and 41 D)
SUMMARY:
The Commissioner of Revenue has determined the cost of living adjustment to be used in
Fiscal Year 2012 by communities that have adopted certain local options. Those options allow
communities to increase annually the:
0 Exemption amount granted to senior citizens and surviving spouses and
minors under Clauses 17, 17C, 17C V2or 17D.
0 Asset limits for determining if senior citizens and surviving spouses and
minors qualify for exemption under Clauses 17, 17C, 17CV2or 17D.
0 Income and asset limits for determining if senior citizens qualify for
exemption under Clauses 41, 41B or 41C.
The cost of living adjustment (COLA) is measured by the increase in the United States
Department of Labor, Bureau of Labor Statistics Consumer Price Index for Urban Consumers,
Boston (CPI-U) for the previous calendar year.
The cost of living adjustment for FYI 2 exemption purposes is 1.65%.
GUIDELINES:
1. ADJUSTED EXEMPTION AMOUNT FOR CLAUSE 17s
Communities have the option of increasing each year the amount of the exemption
granted to certain senior citizens and surviving spouses and minors under G.L. c. 59, � 5,
Clau�es 17, 17C. 170/2 or 17D by any percentage u to the COLA determined by the
Commissioner of Revenue. G.L. c. 59, § 5 provision added by St. 1995, c. 18 1.
BUREAU OF MUNICIPAL FINANCE LAW KATHLEEN COLLEARY, CHIEF
-2-
A. Local Adoption
I AcceMnce
The COLA increases the exemption amount paly in those communities that
accept a G.L. c. A § 5 provision added by St. 1995, c. 18 1. Acceptance is by
vote of the community's legislative body, subject to charter. G.L. c. 4, § 4. The
attached or similar language may be used for the vote.
2. Annual Percentage Increase
The percentage by which the exemption amount is increased each year must also
be established by vote of the community's legislative body,subject to charter.
The annual increase cannot exceed the actual COLA for any year. There are
several ways in which a community may establish the annual increase including,
for example, the use of.
A percentage of the prior year's COLA (e.g., The annual increase
will be 100% (or 75%, 50%, etc.)of the COLA.)
A capped increase (e.g., The annual increase will be 2.5%, or the
COLA, whichever is less).
Annual increases established in this manner apply automatically each year until a
new vote is taken establishing a different increase.
Alternatively, an annual vote may be taken to establish the specific percentage
increase for that particular year once the Commissioner of Revenue has
determined the actual COLA for the preceding year.
B. Annual Exemption Amount
The increases resulting from acceptance of this provision operate cumulatively. Each
year's exemption amount, after application of the voted percentage increase, becomes the
base to which the next year's increase applies.
Exampil
A community first adopts the local option provision for FY1 I and votes to
increase the exemption annually by 100% of the COLA. In FYI 1, the
base $175 exemption increased by 0% and eligible taxpayers received an
exemption of$175 ($175 x 1.0). The FYI 2 exemption amount is
calculated by applying the FYI 2 COLA to $175. That results in a FY12
exemption amount of$178 ($175 x 1.0 165).
3-
If an optional additional exemption is granted under St. 1986, c. 73, § 4, the additional
amount is based on the adjusted exemption amount. In the example above, any optional
exemption granted for FYI 2 is based on $178, rather than $175.
C. State Reimbursements
Cities and towns will not receive additional state reimbursement for any increase in the
exemption amount granted under this provision.
11. ADJUSTED ASSET LIMIT FOR CLAUSE 17s
Communities have the option of automatically increasing each year the amount of assets
(whole estate) certain senior citizens and surviving spouses and minors may have and
qualify for an exemption under G.L. c. 59, § 5, Clause 17, 17C, 17CY2or 17D by the
COLA determined by the Commissioner of Revenue. G.L. c. 59J 5, Clause 17E.
A. Local Ado6tion
The COLA increases the asset limit on]y in those communities that have accepted G.L. c.
59, & 5, Clause 17E. Acceptance is by vote of the community's legislative body, subject
to charter. G.L. c. 4, § 4. The attached or similar language may be used for the vote.
B. Annual Asset Limit
The asset limit increases resulting from adoption of this provision operate cumulatively.
Each year's new limit, as increased by the COLA, becomes the base to which the next
year's COLA is applied.
Example
A community that operates under Clause 17D first adopts the local option
provision for FYI 1. In FYI ], the base asset limit of$40,000 was
increased by 0% and taxpayers qualified for the exemption with assets up
to $40,000 ($40,000 x 1.0). The FY)2 asset limit is calculated by
applying the FY12 COLA to $40,000. That results in a FY12 asset limit
of$40,66 0 ($4 0,000 x 1.0 16 5).
-4-
C. State Reimbursements
Subject to appropriation, cities and towns operating under Clause 17 will be reimbursed
at the rate of$175 for each exemption granted. Reimbursements for cities and towns
operating under Clauses 17C, 17Cl/2and 171), however, are fixed at the dollar amount
received in the last year Clause 17 was used and no adjustment will be made if additional
exemptions are granted as a result of accepting this provision.
111. ADJUSTED INCOME AND ASSET LIMITS FOR CLAUSE 41s
Communities have the option of automatically increasing each year the amount of the
income (F4ross receipts) and assets (whole estate)certain senior citizens may have to
qualify for an exemption under G.L. c. 59, § 5, Clause 41, 4 1 B and 4 1 C by the COLA
determined by the Commissioner of Revenue. G.L. c. 59, & 5, Clause 4 1 Q.
This option does not adjust the income (gross recei.pts) seniors may have to qualify for an
exemption under G.L. c. 59, & 5, Clause 4 1 CV2. That income limit is tied to the income
limits under the state "circuit breaker" income tax credit, which are automatically
adjusted each year under another law. See Infori-national Guideline Release(IGR) I I-
208, Clause 41CYz PropeM Tax Exem-ptions Lor Seniors.
A. Local Adoption
The COLA increases the income and asset limits on in those communities that have
Mly
accepted G.L. c. 59, § 5, Clause 41D. Acceptance is by vote of the community's
legislative body, subject to charter. G.L. c. 4, § 4. The attached or similar language may
be used for the vote.
B. Annual Income and Asset Limits
The income and asset limit increases resulting from adoption of this provision operate
cumulatively. Each year's new limit, as increased by the COLA, becomes the base to
which the next year's COLA is applied.
Example
A community that operates under Clause 4 1 C first adopts the local option
provision for FYI 1. In FYI 1, the base income limits of$13,000 for single
taxpayers and $15,000 for married taxpayers were increased by 0% and
taxpayers qualified for the exemption with income of up to $13,000
($13,000 x 1.0) if single and $15,000 ($15,000 x 1-0) if married. The
FY12 income limits are calculated by applying the FYI 2 COLA to
$13,000and $15,000. That results in FYI 2 income limits of$]3,215
($13,000 x 1.0 165) and $15,248 ($15,000 x 1.0 165).
-5-
In FYI 1,the base asset limits of$28,000 for single taxpayers and $30,000
for married taxpayers were increased by 0%and taxpayers qualified for
the exemption with assets of up to $28,000 ($28,000 x 1.0) if single and
$30,000 ($30,000 x 1.0) if married. The FYI 2 asset limits are calculated
by applying the FYI 2 COLA to $28,000 and $30,000. Thatresultsin
FY12 asset limits of$28,462 ($28,000 x 1.0165) and $30,495 ($30,000 x
1.0165).
If a community that uses Clause 41 C votes to increase its income or asset limits under
that clause, the COLA will apply to the new higher limits. See IGR No. 02-209, Cla
41C,Exemplion QWions. For example, a community votes to increase the gross receipts
limits for FYI 2 to the new maximum limits of$20,000 and $30,000 for single and
married taxpayers respectively. If Clause 41D is also in effect for FY12, the VY12
COLA of 1.65%would be applied to $20,000 and $30,000, which would result in FYI 2
income limits of$20,330 if single and $30,495 if married. Those amounts would then
become the base to which the FYI 3 COLA would be applied.
C. State Reimbursements
Subject to appropriation, cities and towns operating under Clause 41 will be reimbursed
at the rate of$500 for each exemption granted. Reimbursements for cities and towns
operating under Clauses 41 B and 4 1 C, however, are capped at the number of exemptions
granted the last year Clause 41 was used.
Exampl
For FYI 0, a community operates under Clause 41 and grants 100
exemptions. It is reimbursed for 100 exemptions.
For FYI 1,the community adopts Clause 41 C and grants 75 exemptions.
It is reimbursed for 75 exemptions.
For FYI 2, the community adjusts its income and asset limits to the
maximums pen-nitted by Clause 4 1 C and grants 125 exemptions, It is
reimbursed for 100 exemptions, the number granted in the last year it
operated under Clause 4 1.
TR-2011-51
A RESOLUTION TO ATTACH EXEMPTION AND ASSET LIMIT AMOUNTS FOR SENIOR CITIZENS,SURVIVING
SPOUSES AND SURVIVING MINORS TO THE COST OF LIVING ADJUSTMENT
(SPONSORED BY: MAYOR RICHARD A. COHEN)
WHEREAS, Massachusetts General Law 59, Section 5,Clause 17D(M.G.L. c. 59, §5 cl. 17D) provides that
a City attach a real property tax exemption to the Consumer Price Index by adopting M.G.L.c.59,§5 cl.
17E; for Senior and surviving spouses; and
WHEREAS,the Consumer Price index is determined by the United States Department of Labor, Bureau
of Labor Statistics annually; and
WHEREAS, adopting M.G.L.c. 59, §5 cl. 17E provides for an automatic adjustment in the asset limit
allowable under the statute based on a Cost of Living Adjustment; and
Whereas,the current asset limits are$40,000.00; and
Whereas,the current exemption amount is$175-00.
NOW THEREFORE, BE IT RESOLVED BY THE AGAWAM TOWN COUNCIL that the Town of Agawam accept
General Laws Chapter 59, Section 5,Clause 17E,which authorizes an annual increase in the asset (whole
estate) limit for exemptions and the exemption amount granted to senior citizens, surviving spouses and
surviving minors under General Laws Chapter 59, Section 5,Clause 17D, by percentage increases in the
U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price Index for the previous year as
determined by the Commission of Revenue,to be effective for exemptions granted for any fiscal year
beginning on or after July 1, 2012.
DATED THIS DAYOF 2011.
PER ORDER OF THE AGAWAM CITY COUNCIL
jDonald M. Rhea , President
A RjOVEDAS FORM AND LEGALITY
Vincent F. Gioscia, City Solicitor
Massachusetts Depstment of Revenue DivisionoftocalSffwces
Na9ee1K&1CWya5svw RobefrG Nunes,DePLIYCmymsvner&DvwtOrOfMurHOPatAff8ffs
Informational Guideli"ne Release
Bureau of Municipal Finance Law
Informational Guideline Release (IGR)No. 11-206
February 2011
OPTIONAL COST OF LIVING ADJUSTMENT
FOR
FISCAL YEAR 2012 EXEMPTIONS
(G.L. c. 59, §5, Clauses 17, 17C, 17C/2, 17D, 17E,41,4113,41C and 41D)
This Informational Guideline Release (IGR) informs assessors of the cost of living
adjustment (COLA) to be used in Fiscal Year 2012 by communities that have adopted certain local
options for annually increasing the:
• Exemption amount granted to senior citizens and surviving spouses and minors under
Clauses 17, 17C, 17CV2 or 17D.
• Asset limits for determining if senior citizens and surviving spouses and minors qualify
for exemption under Clauses 17, 17C, 170/2 or 17D.
• Income and asset limits for determining if senior citizens qualify for exemption under
Clauses 41, 41B or 41C.
Topical Index Key: Distribution:
Exemptions Assessors
WD&sian
fegurtfpuffishes AGRs ftbmad2wi rg**fiLPe dgzufingh?gNanda&ibstra6*pweans)&7dow Ovvarxemm aridaseU ffdbnwtkN far fte arkials and
omersinweswommkipairnwice
Pbst ofte&x M Bostoa AM 02114-069,Td 617-62&73M,Fax 617-62r,2330 http1Awvwnms190Wd1s
Informational Guideline Release (IGR)No. 11-206
February 2011
OPTIONAL COST OF LIVING ADJUSTMENT
FOR
FISCAL YEAR 2012 EXEMPTIONS
(G.L. e. 59, § 5,Clauses 17, 17C, 170/2, 17D, 17E,41,41 B,41 C and 41D)
SUMMARY:
The Commissioner of Revenue has determined the cost of living adjustment to be used in
Fiscal Year 2012 by communities that have adopted certain local options. Those options allow
communities to increase annually the:
6 Exemption amount granted to senior citizens and surviving spouses and
minors under Clauses 17, 17C, 17C1/2or 17D.
0 Asset limits for determining if senior citizens and surviving spouses and
minors qualify for exemption under Clauses 17, 17C, 170/2 or 17D.
0 Income and asset limits for determining if senior citizens qualify for
exemption under Clauses 41, 41 B or 41 C.
The cost of living adjustment (COLA) is measured by the increase in the United States
Department of Labor, Bureau of Labor Statistics Consumer Price Index for Urban Consumers,
Boston (CPI-U) for the previous calendar year.
The cost of living adjustment for FYI 2 exemption purposes is 1.65%.
GUIDELINES:
1. 'ADJUSTED EXEMPTION AMOUNT FOR CLAUSE 17s
Communities have the option of increasing each year the amount of the exemption
granted to certain senior citizens and surviving spouses and minors under G.L. c. 59, § 5,
Clauses 17, 17C, 17CY2 or 17D by any.percentage up to the COLA determined by the
Commissioner of Revenue. G.L. c. 59, §-5 provision added by St. 1995, c. 18 1.
BUREAU OF MUNICIPAL FINANCE LAW KATHLEEN COLLEARY, CHIEF
-2-
A. Local Adoption
I Acceptance
The COLA increases the exemption amount gnly in those communities that
accept a G.L. c. 59, § 5 provision added by St. 1995, c. 181. Acceptance is by
vote of the community's legislative body, subject to charter. G.L. c. 4, § 4. The
attached or similar language may be used for the vote.
2. Annual Percentage Increase
The percentage by which the exemption amount is increased each year must also
be established by vote of the community's legislative body, subject to charter.
The annual increase cannot exceed the actual COLA for any year. There arc
several ways in which a community may establish the annual increase including,
for example, the use of.
A percentage of the prior year's COLA (e.g., The annual increase
wi I I be 100%(or 75%, 5 0%, etc.) o f the COLA.)
A capped increase (e.g., The annual increase will be 2.5%, or the
COLA, whichever is less).
Annual increases established in this manner apply automatically each year until a
new vote is taken establishing a different increase.
Alternatively, an annual vote may be taken to establish the specific percentage
increase for that particular year once the Commissioner of Revenue has
determined the actual COLA for the preceding year.
B. Annual Exemption Amount
The increases resulting from acceptance of this provision operate cumulatively. Each
year's exemption amount, after application of the voted percentage increase, becomes the
base to which the next year's increase applies.
Exampl
A community first adopts the local option provision for FYI I and votes to
increase the exemption annually by 100% of the COLA. In FYI 1, the
h_ase $175 exemption increased by 0% and eligible taxpayers received an
exemption of$175 ($175 x 1.0). The FYI 2 exemption amount is
calculated by applying the FY 12 COLA to $175. That results in a FY 12
exemption amount of$178 ($175 x 1.0 165).
-3-
If an optional additional exemption is granted under St. 1986, c. 73, § 4, the additional
amount is based on the adjusted exemption amount. In the example above, any optional
exemption granted for FY 12 is based on S 178, rather than $175.
C. State Reimbursements
Cities and towns will not receive additional state reimbursement for any increase in the
exemption amount granted under this provision.
11. ADJUSTED ASSET LIMIT FOR CLAUSE 17s
Communities have the option of automatically increasing each year the amount of assets
(whole estate) certain senior citizens and surviving spouses and minors may have and
qualify for an exemption under G.L. c. 59, & 5, Clause 17, 17C, 17C V2or 17D.by the
COLA determined by the Commissioner of Revenue. G.L. c. 59, § 5-Clause 17E.
A. Local Adoption
The COLA increases the asset limit only in those communities that have accepted G.L. c.
59
, § 5. Clause 17E. Acceptance is by vote of the community's legislative body, subject
to charter. G.L. c. 4, § 4. The attached or similar language may be used for the vote.
B. Annual Asset Limit
The asset limit increases resulting from adoption of this provision operate cumulatively.
Each year's new limit, as increased by the COLA, becomes the base'to which the next
year's COLA is applied.
Examnle
A community that operates under Clause 17D first adopts the local option
provision for FYI 1. InFYII, thebaseassetl'imit of$40,000 was
increased by 0%and taxpayers qualified for the exemption with assets up
to $40,000 ($40,000 x 1.0). The FYI 2 asset limit is calculated by
applying the FY12 COLA to $40,000. That results in a FY12 asset limit
of$40,660 ($40,000 x 1.0165).
-4-
C. State Reimbursements
Subject to appropriation, cities and towns operating under Clause 17 will be reimbursed
at the rate of$175 for each exemption granted. Reimbursements for cities and towns
operating under Clauses 17C, 17CV2and 17D, however, are fixed at the dollar amount
received in the last year Clause 17 was used and no adjustment will be made if additional
exemptions are granted as a result of accepting this provision.
111. ADJUSTED INCOME AND ASSET LIMITS FOR CLAUSE 41s
Communities have the option of automatically increasing each year the amount of the
income (gross receipts) and assets�whole estate),certain senior citizens may have to
qualify for an exemption under G.L. c. 59, § 5. Clause 41-4 1 B and 4 1 C by the COLA
determined by the Commissioner of Revenue. G.L. c. 59, � 5, Clause 41 D.
This option does not adjust the income (gross receipts) seniors may have to qualify for an
exemption under G.L. c. 59, § 5, Clause 4 1 CV2. That income limit is tied to the income
limits under the state "circuit breaker" income tax credit, which are automatically
adjusted each year under another law. See Infon-national Guideline Release QGR) I I-
208, Clause 41CY: ProorN Tax Exemptions for Seniors.
A. Local Adoption
The COLA increases the income and asset limits o in those communities that have
Q21-y
accepted G.L. c. 59, � 5, Clause 41D. Acceptance is by vote of the community's
legislative body, subject to charter. G.L. c. 4, § 4. The attached or similar language may
be used for the vote.
B. Annual Income and Asset Limits
The income and asset limit increases resulting from adoption of this provision operate
cumulatively. Each year's new limit, as increased by the COLA, becomes the base to
which the next year's COLA is applied.
Exampf
A community that operates under Clause 4 1 C first adopts the local option
provision for FY 11. In FY 11, the base income limits of$13,000 for single
taxpayers and $15,000 for married taxpayers were increased by 0%and
taxpayers qualified for the exemption with income of up to $13,000
($13,000 x 1.0) if single and $15,000 ($15,000 x 1.0) if married. The
FYI 2 income limits are calculated by applying the FY 12 COLA to
$13,000 and $15,000. That results in FY12 income limits of$13,215
($13,000 x 1.0 165) and $15,248 ($15,000 x 1.0 165).
-5-
In FYI 1, the base asset limits of$28,000 for single taxpayers and $30,000
for married taxpayers were increased by 0%and taxpayers qualified for
the exemption with assets of up to $28,000 ($28,000 x 1.0) if single and
$30,000 ($30,000 x 1-0) if married. The FYI 2 asset limits are calculated
by applying the FYI 2 COLA to $28,000 and $30,000. That results in
FYI 2 asset limits of$28,462 ($28,000 x 1.0 165) and $30,495 ($30,000 x.
1.0165).
If a community that uses Clause 4 1 C votes to increase its income or asset limits under
that clause,the COLA will apply to the new higher limits. See IGR No. 02-209, Clause
41C ExemptLv Options. For example, a community votes to increase the gross receipts
limits for FYI 2 to the new maximum limits of$20,000 and $30,000 for single and
married taxpayers respectively. If Clause 41D is also in effect for FY12, the FY12
COLA of 1.65%would be applied to $20,000 and $30,000, which would result in FYI 2
income limits of$20,330 if single and $30,495 if married. Those amounts would then
become the base to which the FYI 3 COLA would be applied.
C. State Reimbursements
Subject to appropriation, cities and towns operating under Clause 41 will be reimbursed
at the rate of$500 for each exemption granted. Reimbursements for cities and towns
operating under Clauses 4 1 B and 4 1 C, however,are capped at the number of exemptions
granted the last year Clause 41 was used.
Example
For FY 10, a community operates under Clause 41 and grants 100
exemptions. It is reimbursed for 100 exemptions.
For FYI 1, the community adopts Clause 41 C and grants 75 exemptions.
It is reimbursed for 75 exemptions.
For FYI 2, the community adjusts its income and asset limits to the
maximums pen-nitted by Clause 41 C and grants 125 exemptions. It is
reimbursed for 100 exemptions, the number granted in the last year it
operated under Clause 4 1.