SACO — Saco City Finance Director Glenys Salas is recommending Saco make changes to a long-standing program that allows seniors to work-off part of their property taxes through volunteer work so the city will remain in compliance with IRS regulations. 

In 2008, the city adopted a volunteer program that allows those 60 years old and older who qualify to earn up to $750 toward their property tax bill  through volunteer work. To qualify people must meet age and income guidelines and be a full-time Saco resident. The program offers a wide range of assignments including clerical positions in City Hall and greeters at the train station. 

In an April 9 memo to the City Council, Salas said she and other city staff have reviewed the program and have proposed changes to bring it into compliance with IRS regulations. 

A major change in the program would reduce the annual benefit from $750 to $599, so the city will not have to file tax forms on behalf of volunteers. 

Salas refers to an article from the Missouri accounting firm Hochschild, Bloom and Company website. The article states that should a volunteer receive an annual stipend or other benefit of $600 or more, the volunteer must be issued a 1099-MISC tax form for the benefit, which the volunteer must report on their annual taxes. 

Salas also recommends stating in the volunteer program guidelines that volunteers are to work a minimum of 59 hours, allowing volunteers to volunteer more hours if they wish. 

“That way, the benefit is a benefit and not a wage,” said Salas. 

Typically in the past, seniors in the program had to complete an agreed number of hours in order to receive their benefits. 

Salas also recomends that under the new guidelines, volunteers are not subject to feedback on anything other than accomplishing their assigned project in a correct or timely manner. Volunteers would not be subject to annual reviews, feedback or personal work style or performance improvement plans, under the proposed guidelines. 

The city council will review the proposed changes for the tax work-off program at a workshop Tuesday night after the 6:30 p.m. City Council meeting.

— Staff Writer Liz Gotthelf can be contacted at 282-1535, ext. 325 or [email protected].