JOAN BARRON Star-Tribune capital bureau | Posted: Tuesday, March 4, 2008 12:00 am
CHEYENNE -Two bills that expand existing tax relief programs passed their initial test in the Senate Monday before the lid came down on debate for the budget session.
House Bill 92 expands an existing low-income property tax relief program now renamed a property tax refund.
House Bill 151 increases the income levels for the tax rebate for the long-standing elderly and disabled program.
Both bills will have two more votes in the Senate before they clear the Legislature.
House Bill 92 raises the income threshold for the revised property tax refund program to two-thirds of the median income of the county or the state. Qualified applicants also will be allowed $50,000 in assets for each person in a household. They must have been residents of the state for five years.
The original program was expected to help 19,000 people in 2006, but only 600 people applied.
Sen. Kit Jennings, R-Casper, said Department of Revenue officials have promised to do a better job of advertising the property tax refund this time.
Gov. Dave Freudenthal and others in favor of broader property tax relief without requiring proof of income maintain few people are willing to show their federal income tax returns at the courthouse.
"This is basically being treated as a welfare program," said Sen. Charles Scott, R-Casper.
He also said the requirement for applicants to disclose their personal financial information is "demeaning," and he questioned the security of the tax information which includes the applicants' Social Security numbers.
"This is a sorry excuse for the kind of broad-based tax relief our constituents deserve," Scott added.
Scott's bill to reduce the tax rates on residential property was never brought up for debate on the Senate floor. Senate Majority Floor Leader John Hines, R-Gillette, said its $80 million price tag was too high.
House Bill 151 allows tax refunds for people over age 65 or who are totally disabled. To qualify, a single person must have an annual income of less than $17,500. A married couple can quality with up to $28,000 in annual income.
The refund is for property and sales taxes and motor vehicle fees.
The current law gives tax refunds to elderly or disabled people with income up to $13,500 for singles and no more than $22,000 for married couples.
Contact Joan Barron at joan.barron@trib.com or by phone at 307-632-1244.