Sen. Cynthia Coyne, D-Barrington, has introduced legislation that would allow property owners aged 60 and older to volunteer for their communities in exchange for a tax credit reducing their property taxes. The proposal has had a hearing before the Senate’s Finance Committee, but as yet no companion bill in the House. In an interview with the Providence Business News, Coyne explained what the bill would accomplish.
PBN: What would your bill do for seniors?
COYNE: It would allow seniors to put their time and skills to good use helping their cities and towns, while reducing their property taxes. The legislation itself would authorize cities and towns to establish programs to offer tax credits to property owners aged 60 and older in return for volunteer hours. While each city or town can adopt their own program and set the parameters, the legislation would allow seniors to earn up to $1,500 off their property taxes. It could be less than that. Newport has a program similar to this and they allow $500.
PBN: Would the cities and towns decide how much time is worth so much in a tax credit?
COYNE: The reduction of the tax liability would be equal to the minimum wage per hour for volunteering. Currently its $10.10 but it will be rising to $10.50 on Jan. 1. [For the maximum amount] it would be approximately 11.9 hours a month.
PBN: What are the origins of the bill? Were you approached by a constituent?
COYNE: Yes. I had a constituent from the town of Barrington approach me on this. They gave me the law in place right now in the state of Massachusetts. This legislation is modeled after the Massachusetts law that allows this. This citizen also served on … Barrington’s ad-hoc tax reduction committee. This type of program for volunteerism was also studied by the ad-hoc committee.
PBN: Can the volunteerism be for any cause, any nonprofit?
COYNE: It would be volunteering for the town itself. … In this legislation, it allows a lot of flexibility for the towns to develop the programs on their own. A lot of our departments within towns have volunteers on committees. The city of Newport has a variety of activities. They are constantly putting on town events.
PBN: For a working person, $1,500 in a year may not seem like a lot of money. But for retirees, is this meaningful?
COYNE: For seniors, it means a lot. It enables them to remain longer in their homes. Many seniors do not want to leave. They are connected to their communities and have valuable experience and education. The legislation is supported by the AARP. It allows them a sense of purpose. It is fulfilling for them to give back to their communities.
Mary MacDonald is a staff writer for the PBN. Contact her at macdonald@pbn.com.
