City Council OKs expanding tax breaks to veterans, disabled and elderly

ROCHESTER - The Rochester City Council earlier this month unanimously approved an expansion to veterans' tax credits and tax exemptions for the elderly and disabled.

According to Deputy City Manager and Finance Director Katie Ambrose, the limitations on assets and income for both elderly and disabled exemptions were increased, which means more residents may qualify. In addition, the elderly exemption amount was increased for all age brackets, which now exceeds the benefits provided by the average municipality in Strafford County. The exemption amounts for disabled and blind remain the same at the current $75,000.

Ambrose reports that there is a 20 percent increase to the asset limitation for elderly and disabled exemptions, from $100,000 to $120,000; a 10 percent increase on single and married income limitations for elderly and disabled exemptions, from $35,000 to $38,500 for single and from $50,000 to $55,000 for married couples; and an increase to the elderly exemption, from $75,000 to $90,000 (aged 65-74), $100,000 to $120,000 (aged 75-79), and $125,000 to $150,000 for residents over 80.

Based on 2022 data, the estimated tax rate impact of the increased elderly exemption amounts is 4 cents.

For veterans' tax credits, the City of Rochester currently offers a credit in the amount of $300.

"The Finance Committee recommended implementing the All Veterans' Tax Credit for the next tax year, which means that the credit will be expanded to more veterans at the current $300 credit amount," said Ambrose. "Previously, qualifying veterans must have served at least 90 days in a qualifying war or armed conflict. However, under the All Veterans' Credit, the qualifying war or armed conflict is no longer required."

To fully qualify, the veteran must be a resident of New Hampshire for one year, be an owner of the property, using the property as their primary residence, and have been honorably discharged or continue to serve, all as of April 1st of the year of application.

"The Finance Committee recommends staying within 20% of the average of their comparison communities," said Ambrose. "They also moved to expand the number of veterans that qualify for the Veterans' Tax Credit rather than increase the credit amount itself."

Ambrose says the finance committee will reassess the data after one year of implementation.

Forms are available here. For more information regarding exemptions or tax credits, please contact the Assessing Department at (603) 332-5109. The 2023 tax year filing period ends April 15, 2023.