AARP expresses concerns over Markell’s property tax subsidy cut to seniors

Delaware testified before the Joint Finance Committee on Feb. 26 to express concerns with Governor Markell’s proposal to reduce by half the existing $500 property tax subsidy currently afforded to Delaware seniors, age 65 and older. AARP strongly believes that all individuals have the right to be self-reliant and live with dignity in retirement.

 “AARP Delaware applauds the excellent job our state has done to put in place policies and programs that enhance the lives of individuals 50-plus and their families,” said Lucretia Young, AARP Delaware State Director. “In turn, this population, which includes our 176,000 Delaware AARP members, plays a vital role in helping to sustain and grow Delaware’s economy.”    

 According to “Longevity Economy,” a report prepared by Oxford Economics for AARP, Delawareans 50 and older accounted for 45 percent of the state’s $28 billion gross domestic product in 2013. Moreover, the report found that state residents 50-plus made up just 36 percent of Delaware’s population in 2013, but supported 62 percent of jobs in the state—mainly in the areas of health care, retail, finance and insurance. Further, Delawareans 50-plus contributed to 58 percent of employee compensation in the state and 61 percent of state taxes.

Currently, approximately 61,500 households in Delaware benefit from the senior property tax subsidy. Many of our elderly residents have lived in their homes for a long time. As their property values have appreciated, so have their property taxes.

 Many of these seniors are living on fixed incomes. Many of them are still trying to dig out from the damages inflicted by the Great Recession, where they may well have seen their retirement savings lost or greatly diminished. In addition, many seniors continue to struggle with rising health care costs. In some counties in Delaware, poverty rates hover near and slightly above 8 percent for seniors 60-plus. For some, it may be a choice between food, medicine or heat. For these seniors and their families, a one year $250 unanticipated tax increase will be untenable.

Many of Delaware’s seniors have lived their lives in our state. They sustained our workforce, cared for our children, volunteered in our neighborhoods, and protected our country. Their presence continues to add value to Delaware – as consumers, as volunteers, as good neighbors.

 AARP is committed to working in partnership with Governor Markell and the committee on ideas for ensuring the fiscal health of our great state. In this process, however, we must not forget the continuing significance of Delaware’s seniors and what individual proposals and the budget in its entirety means to them.

 “Ensuring AARP members are financially secure and can age in their own homes and communities are key components our advocacy agenda,” said Young. “The property tax subsidy helps makes that happen for Delawareans.”