HOMESTEAD EXEMPTION GONE, PENALTIES VOTED ON.

Homestead Exemption Gone…!

The budget commission has previously voted to end East Providence’s homeowner tax discount for those owning and living in the same house. The idea however does not seem to be fully understood by most residents. Homeowners can receive an exemption of several hundred dollars from their annual tax rate. The exemption is to be phased out over a 15 year period at a rate of 1% per year. “We’ve talked about this 6 times,” said a frustrated O’Keefe. “We approved it. We read and answer everything in our suggestion box and not one resident has complained about this issue,” O’Keefe said. “We have heard complaints about cutting middle school sports and we got one complaint about library branch closings, but nothing about this exemption,” O’Keefe added. “I think we can keep this by phasing out but let’s explain it better to the homeowners,” said Mayor Rogers. Rogers also said that he wants people to have the right to discuss this at a meeting and “realize that we are still keeping the exemptions for veterans and elderly. I also hope that once we get our finances back in order we might be able to re-instate the homestead exemption at some point,” he said.

Penalties for Lying…!

The commission also voted on what penalty to impose for those homeowners who falsely claim an exemption. Homeowners who intentionally defraud the city will be subject to paying back the entire principal plus a 15% interest going back each of 5 years. “Are these people (fraudulent exemptions) in error or are they liars?” asked Rogers. “They are usually lying,” said city staffers in attendance to testify. “Neighbors often turn them in and we investigate.” Again, Rogers said he saw the need to have the council make these decisions, not the commission. “We need to bring this to the people for their comments,” said Rogers. “You can have your fiscal authority back when the council brings me a clean and balanced budget…” said O’Keefe.