Discussion erupts over property tax credit in College Park City Hall
The mayor and the city council of College Park met Sept. 26 to vote on a property tax credit for elderly individuals which sparked a long discussion between council members.
Mayor Fazlul Kabir and council members talked at length about the introduction of an ordinance that allows for a $250 credit to be given out to elderly College Park homeowners.
Homeowners who are 65 years or older, have resided in their home for at least 10 years and own a home worth equal to or more than $500,000 would be eligible for this credit. With this criteria, about 87% of the properties in the College Park area would be eligible for credit.
The mayor and council have budgeted $150,000 for this property tax credit ordinance, and eligible individuals can claim this credit for up to five years. Each year, the mayor and council will reassess the ordinance.
District 3 Council member John Rigg said he thinks this money could be given to those who may need it more, like families in poverty or small businesses.
“I think we know that most of the poverty, and even most of the low-income people in our city, are not elderly,” Rigg said
Mayor Kabir explained why he and the council believe this ordinance is important.
“I agree with him, but we’re trying to help our seniors,” Kabir said.
Rigg said he is concerned that the mayor and council are going to be forced to make a trade-off in the near future between providing improved relief services for lower-income residents or property tax credits for residents who may not be struggling at all.
In his closing comments, Rigg reiterates that the $150,000 set aside for this ordinance would not be used to its best ability and could be used for other reasons.
“I would rather, you know, keep the resources in the city and available to be used for other things, and in particular, things like enhancing services that we provide to our youth families and senior services,” said Rigg.
He explained that many of the resources and programs that are already established in College Park are underfunded.
“There are a number of therapeutic services we provide for low-income families that are experiencing psychological issues; they do group and family therapy. There is also a Hispanic parent support network that's sort of crappy and underfunded,” said Rigg.
Rigg believes the city programs need to be improved before the council gives out money to people who may not need it immediately.
“People who tend to own homes are almost by definition middle class,” said Rigg. “If not upper middle class, even in the city of College Park.”
Rigg is concerned because with the ordinance’s criteria, owning any home upwards of $500,000 makes you eligible for the credit. This means someone with close to a million dollar home can apply and be awarded credit, when about 25% of college park residents live in poverty, according to the U.S. Census Bureau.
Despite Rigg’s argument, the ordinance was voted to be put into action by all council members except Rigg.
The council plans to review the credit ordinance each year to assess whether or not it is in the city’s best interest to continue it. Until then, Rigg will have to remain patient.
Eligible residents will be able to start applying for this credit throughout the remainder of this year. Residents should expect to see this credit processed and distributed early in 2024.