Tax Deferral



The Town of Madison hereby updates the implementation of the provisions of Connecticut General Statute 12-129n as amended providing certain tax deferral for the elderly and disabled in accordance with the terms of said Statute and in accordance with the following specific recommendations as approved by the Board of Finance:

  1. The applicants qualifying annual income is defined as all forms of income without exception, not to exceed fifty-seven thousand one hundred and three dollars ($57,103)*. If married, qualifying annual income of husband and wife must be combined. Income shall include adjusted gross income as defined in the Internal Revenue Code plus Social Security Benefits, Railroad Retirement Benefits, income from other tax exempt retirement and annuity sources and income from tax exempt bonds. (* the $57,103 limit is the maximum allowed by the Town of Madison Elderly Abatement Program and will be adjusted by the C.P.I. each year). The Board of Finance may increase or decrease this figure at its discretion.
  2. The interest rate for the amounts deferred will be set annually in January as required by the Board of Finance using prevailing town borrowing rate or rate of return on short-term investments as a guide.
  3. To be eligible, applicants’ mortgages, home equity and other liens cannot exceed the assessed value of their homes.
  4. Applicants who would qualify for the state program or any other state tax relief program must apply for those programs prior to seeking local property tax deferral.
  5. Tax deferrals will be secured by a lien for the full amount. Full or partial repayments may be made at any time.
  6. Tax deferrals and interest are payable at death or on transfer of the property.
  7. 100% tax deferral is allowed, however, it will not exceed $8,000 in any one tax year. This figure may be modified by the Board of Finance.
  8. Administration and forms for the program will be handled by the Assessor and the Tax Collector following as closely as possible the state procedures for their program and our Tax Collector’s Lien procedure.
  9. Any unresolved interpretations that may arise will be handled by a committee made up of the First Selectman (Chairman), Tax Assessor, Tax Collector, Town Counsel and Senior Services Supervisor.
  10. The Assessor and Tax Collector will provide an annual report of the status of the program to the Board of Finance annually prior to December 1st.
  11. The program will be reviewed annually and revised as required by the Board of Finance.

(NOTE – this “Revised Resolution” is an update and clarification of the “Resolution” passed by the Town Meeting on February 2, 1989 and modified by Town Meeting on March 3, 1994.)

Adopted at Board of Selectmen meeting on July 29, 1997
Adopted by Board of Finance - August 20, 1997
Approved – Town Meeting – September 10, 1997
Revised by Board of Finance – December 12, 2001
(income limit increased to $50,000)
Revised by Board of Finance – December 22, 2005
(maximum deferral amount increased to $6,000)
Revised by Board of Finance – July 15, 2009
(income limit increased to $57,103 and will be adjusted each year by the C.P.I to correspond with the Town Elderly Abatement Program)
Revised by Board of Finance – May 21, 2015
(maximum deferral amount increased to $8,000)