If ever there were a time that our senior citizens could use a tax break, it is now. With gas prices over $4 per gallon and inflation costs at the highest they have been in 40 years, there is no better time than now to provide tax relief to our senior population.
I have introduced legislation that would nearly double the senior property tax credit. Under House Bill 287, the tax credit would increase from the current $400 per year to $750 annually. In Delaware, residents who are 65 and older are eligible to receive this tax credit on the amount they pay in school taxes. The state reimburses local school districts for any loss of income resulting from the credit.
Up until 2017, this tax credit was $500 annually. To fill a significant budget hole that year, the tax credit was reduced by $100. It was believed by me and many of my colleagues that this would be a temporary fix, in that once revenue projections rebounded and the state’s financial situation improved, one of the first things we would make good on was restoring the tax credit to its original amount.
Fast-forward to 2022 and the state is in an excellent financial position. Now is the time to follow through on our commitment to assist senior citizens with their bottom line. All indications currently show that the amount of incoming revenue for this fiscal year and next fiscal year will increase by $820 million. That’s $820 million over and above what the state normally would receive in revenue. We’re in extraordinary times, and we should return part of the excess to the very people who have paid the longest into our system.
By virtue of their lifelong contributions, no group of citizens has collectively paid more taxes than seniors. At a time when the state is flush with cash, there is no excuse for not providing some modest tax relief to our older population, many of whom are now living on fixed incomes.
As a member of the legislature’s budget-writing committee — Joint Finance — I have seen our state’s expenditure priorities. We could debate at length deciding which of those priorities need to be reevaluated. When it comes to the senior tax credit bill, though, I believe most Delawareans would agree that it is among the most well-intentioned funding expenses our state can make.
I’m glad to be back in Dover as our legislative session has reconvened. House Bill 287 remains at the top of my legislative agenda.
Rep. Kevin Hensley
R-Townsend
