After years of talking about property tax relief for Scarborough’s senior residents, the town council could be near the point of making it happen.

A proposed new ordinance that provides tax relief for seniors is the subject of a public hearing at the next town council meeting on Wednesday, April 4.

“It’s a very popular program,” said Councilor Ron Ahlquist. Ahlquist is a member of the finance committee, which has studied other programs in place in York and Cumberland counties to develop the ordinance.

At a council meeting on March 21, Ahlquist said that the committee took the best aspects of these programs and made a few changes.

The ordinance stipulates that the town will provide supplemental cash refund payments to qualifying residents of Scarborough. Applicants will have to send a written request to the Tax Assessor

every year, no later than September 15. The refund amount is meant to match that awarded by the state through the circuit-breaker program, but will not exceed $500. Only one applicant per household will be elibible to receive money.

In order to be considered, applicants would first have to qualify for the state’s circuit-breaker program. That benefit is only available when a single taxpayer’s 2005 household income was $77,000 or less; or $102,000 or less for those living with a spouse or dependent; and 2005 property tax was more than 4 percent of the 2005 household income; or rent paid in 2005 was more than 20 percent of household income. Seniors do not need to meet this requirement when their household income is below $12,700 for those living alone or below $15,700 for those living with a spouse or dependent.

According to the proposed ordinance, seniors also must be at least 65 years old and a 10-year resident of Scarborough.

Councilor Shawn Babine, chairman of the finance committee, said that committee also discussed whether the program should be available to renters as well as homeowners. “Renters are still taxpayers,” he said, which led to the decision to include them in the program.

If all qualified residents apply, the total cost to the town will be $250,000, which translates to a 7 cent increase in the tax rate.

The program has not yet been incorporated in the budget, which Babine said will raise some questions, should the ordinance be approved. At the March 21 council meeting, Town Manager Ron Owens presented his 2008 budget, which showed a 2.5 percent increase over last year’s budget – the equivalent of 29 cents per thousand over the current tax rate. Babine said that with the additional 7 cents from the property tax assistance program, the council will have to decide whether to accept a higher increase in the budget or to make adjustments in the existing budget proposal in order to maintain a 2.5 percent increase.

Regardless of its effect on the tax rate, Ahlquist said that, if approved, the program will be included in next year’s budget.

“Our goal is to implement it as soon as possible,” he said.

According to Ahlquist, the next step will be to educate the public about the program.

“Our biggest challenge is to make sure everyone knows it’s out there and takes advantage of it,” he said.

Babine said that the finance committee has discussed implementing a property tax relief program for seniors for the past four years.

“Senior issues have become more and more prevalent,” he said. “We all knew this was something we wanted to do; it was just a matter of getting it done.” Babine said that it was Ahlquist’s persistence that led to the ordinance finally getting written.

“It’s needed in this town,” Ahlquist said.