2017 changes affecting retirees (2013, mortgage, house)

[retired58]

From 3% to 4% transfer tax Seniors losing discount if they live there less than 10 years. Foreclosure rates one of the highest in U S. I was looking at owned homes for sale in Ocean View. First the houses have been on sale for well over 100 days. The prices for sale show at least 70 thousand lost in equity and still no one is biting. I also think there is another bubble bust coming and these owners will lose more equity if not sold. How does Delaware think raising the transfer taxes and hurting seniors are going to help? There will be even more foreclosures to come and less people moving to this state.

[elizabeth224]

I agree about the tax. Since researching retirement locations we have found things seem to balance out as far as expenses. If there isn't a tax on one thing, something else makes up for it. We're focusing more on good healthcare, transportation, convenience to shopping etc. And of course, an area that interests us. We both love DE but it's a lot to consider, especially healthcare. Hopefully, we'll settle on something soon.

[NJBoy3]

Charlottesville, VA..

[EnjoyEveryDay]

Interesting to note the differing concerns on this Delaware Board.

Lots of people decry the endless new housing developments that are being built, as well as all the retirees that are flocking here jamming our roads and taxing our infrastructure. They also bemoan the high cost of these new houses.

Others cite the "sky high" foreclosure rates and huge tax increases, and conclude that we will either have folks fleeing the state, or at the very least, no new people will relocate here.

That's about as close to 180 degrees apart in viewpoints as one can get!

Once again, everyone forms their view points from their own perspective, and all are valid. Somehow, I think Delaware will continue to survive through it all.

[rothbear]

Originally Posted by nuts2uiam

Change in residency approved from 3 to 10 years for Senior TAX credit

Bill Details
Introduced on: 3/30/17
Primary Sponsor: K. Williams
Additional Sponsor(s): Sen. Walsh
Co-Sponsor(s): Sen. Hocker, Simpson
Reps. Baumbach, Bennett, Q. Johnson, Keeley, Kowalko, Longhurst, Lynn, Matthews, Mulrooney, Osienski, Paradee, Spiegelman, Wilson

Long Title: AN ACT TO AMEND TITLES 14 AND 29 OF THE DELAWARE CODE RELATING TO ADMINISTRATION OF SCHOOL PROPERTY TAX CREDITS.

Original Synopsis: This bill would require that a resident 65 years of age or older claiming a tax credit against school taxes must be a resident of the state for at least 10 years before qualifying for such credit. The current requirement is only for 3-year residency. This bill makes a conforming change in the Code provision governing reimbursements from the General Fund. It also eliminates language related to 2001 taxes, which is no longer relevant. This change will be effective for tax and fiscal years after January 1, 2017. Those residents who would have become eligible over the last three years under the prior version of the statute will remain eligible.
Volume Chapter: 81:71
Fiscal Note/Fee Impact:
Not Required
Effective Date: 1/1/18

You have GOT to be kidding me!! Our 3 years is up in April 2018. And why is it fair to let the people who already get it keep it if they have only been here 3 years? Make EVERYBODY wait for 10 years and if you haven't been here 10 years then it gets taken away. Make it fair for everybody. It wasn't that long ago that it was changed from NO minimum to 3 years. And now it's changed again. We all know it will be totally taken away before 7 more years. And while some of our much more well off neighbors get it, we get the shaft. Our representative is Trey Paradee and I promise I will NOT vote for him ever again. Not only did he support this, but he also supported the lowering of the maximum as well as the repeal of the estate tax for the rich. He comes here to the community and makes like he is for us, but apparently like every other politician he just wants to stick it to the retiree and give tax breaks to the rich. Not everybody who moves here are rich people escaping NJ/NY taxes.

[rdlr]

I can understand the frustration about all of these changes, and also our upside down Delaware government. Throw the bums out!

We were born and raised here in Delaware, and when we were "of age" we were "awarded" the 50% off school tax bill. So, we're now benefited from that for 15 years. Lucky us, we're OLD!

[skeddy]

Originally Posted by rothbear

You have GOT to be kidding me!! Our 3 years is up in April 2018. And why is it fair to let the people who already get it keep it if they have only been here 3 years? Make EVERYBODY wait for 10 years and if you haven't been here 10 years then it gets taken away. Make it fair for everybody. It wasn't that long ago that it was changed from NO minimum to 3 years. And now it's changed again. We all know it will be totally taken away before 7 more years. And while some of our much more well off neighbors get it, we get the shaft. Our representative is Trey Paradee and I promise I will NOT vote for him ever again. Not only did he support this, but he also supported the lowering of the maximum as well as the repeal of the estate tax for the rich. He comes here to the community and makes like he is for us, but apparently like every other politician he just wants to stick it to the retiree and give tax breaks to the rich. Not everybody who moves here are rich people escaping NJ/NY taxes.

Obviously you don't like it, I understand, so your solution to a retroactively "punish" those who already have qualified and are receiving the tax credit? That makes it fair for everyone you say? Sounds as though you want to expand upon a law you find unfair.

[retired58]

It should be for people who are moving there now as of March 2017. Skeedy should get it. If you job decided the retirement age is 62 and you are 61 with 30 years on the job and they decided to raise it to 65 for everybody. You have already made plans to relocate as it can take more than a year to figure out where. What now? How is that fair and why should you be in the same category as newcomers. Just my opinion.

[nuts2uiam]

Originally Posted by rothbear

You have GOT to be kidding me!! Our 3 years is up in April 2018. And why is it fair to let the people who already get it keep it if they have only been here 3 years? Make EVERYBODY wait for 10 years and if you haven't been here 10 years then it gets taken away. Make it fair for everybody. It wasn't that long ago that it was changed from NO minimum to 3 years. And now it's changed again. We all know it will be totally taken away before 7 more years. And while some of our much more well off neighbors get it, we get the shaft. Our representative is Trey Paradee and I promise I will NOT vote for him ever again. Not only did he support this, but he also supported the lowering of the maximum as well as the repeal of the estate tax for the rich. He comes here to the community and makes like he is for us, but apparently like every other politician he just wants to stick it to the retiree and give tax breaks to the rich. Not everybody who moves here are rich people escaping NJ/NY taxes.

I am a month ahead of you arriving in March of 13. That said, the bottom line is they are in need of a balanced budget and the system needs a cash infusion and if this is how they get it, that is ok by me. They could have started a sales tax or removed the senior rebate all together. Truth be told, speaking only for myself, the rebate never entered my thinking when moving here. I considered it a bonus. We are thrilled to be able to call this state home.

[skeddy]

Apparently state legislators felt this was the best of a number of unpopular choices to makeup for budget shortfalls. IMO, the tax credit will eventually be eliminated for everyone. I can't get that worked up over $500.