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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.