One CFO Wants to Cap Property Taxes for Retirees, but Not Everyone Thinks It’s a Good Idea

For some people, taxes are something they think about just once a year, typically between Jan. 1 and April 15. But for homeowners, taxes can be an ongoing conversation thanks to property taxes. 

Property taxes are collected at different times throughout the year, depending on where homeowners live, and can increase periodically. Those increases can really change day-to-day life for a lot of people, especially those living on a fixed income, like seniors.

That’s why one CFO is proposing a change to how property taxes are collected for homeowners of a certain age. CFO on the GO posted his idea on Facebook, suggesting that seniors be allowed to pay a fixed amount for their real estate taxes once they reach a certain age.

However, not everyone was on the same page in the comments, and people had a lot to say about the idea. That is especially true of those who said that anyone who owns a home free and clear should be able to afford their annual real estate tax bill.

One CFO Wants to Cap Property Taxes for Retirees

The CFO’s idea is that seniors should have their taxes capped once they pay off their mortgage, preventing their taxes from continuing to rise as assessments, property values, and other factors cause the rates to go up. “The average American homeowner pays around $4,427 a year in property taxes,” he wrote. “But in some parts of the country, homeowners face annual property taxes of $10,000 to $15,000 or more. In Westchester County, NY, the average exceeds $18,000!”

While he says that he understands the purpose of property taxes and the role they play in the community, he believes that retirees who own their homes free and clear shouldn’t bear the burden of funding things like emergency services, schools, and local infrastructure. 

“But I also believe someone who has worked their entire life shouldn’t have to worry about being taxed out of their home during retirement,” he continued. 

Not Everyone Agrees Seniors Should Get a Property Tax Break

The comments revealed some strong opinions, with people sharing their thoughts about the proposal. “If you have a home that valuable, you can use the equity in it,” one person wrote. “You don’t get to benefit from the rising property value without having to contribute.”

“The average owner pays $3,500 a year in property taxes,” another person wrote. “Yet again, it’s rich people wanting to save money pretending it’s going to benefit the poor. I would support property tax relief for the elderly with a cap on the property value of being average in the area or national averages, whichever is lower.”

While both sides may have valid points, there are some alternatives for cash-strapped seniors looking for breaks in their property taxes. Kiplinger says that seniors should consider some alternative options when looking to lower their tax burden, including tax credits and refunds, homestead exemptions, and even tax deferral. 

Of course, not all of these options are right for everyone, so seniors considering any of these paths should first talk to a financial expert to find out what choice best suits their situation.