McNamara bill package focuses on seniors, has AARP support

By Tessa Roy
Posted 3/14/17

Representative Joseph McNamara has introduced a package of legislation that has Rhode Island's senior citizens in mind. The bills would increase the tax exemption on retirement income, establish a tax credit for modifying a vehicle to

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McNamara bill package focuses on seniors, has AARP support

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Representative Joseph McNamara has introduced a package of legislation that has Rhode Island's senior citizens in mind. The bills would increase the tax exemption on retirement income, establish a tax credit for modifying a vehicle to accommodate a disability, and provide a tax credit for buying or retrofitting a residence to provide access for those with a disability.

"As Rhode Island's population ages, it's important for us to do what we can to ease the burden of those who have shouldered the burden all their lives," said McNamara in a statement. "From building our country to fighting our wars, senior citizens have made the investment in time, money and untiring devotion to their families, their employers and their country. The least we can do is to make things a little easier at tax time and by helping to accommodate their needs in their later years."

One bill, 2017-H 5778, would establish the Rhode Island Livable Home Tax Credit Act and provide for its administration. The act would provide a tax credit against the state's personal income tax for taxpayers who purchase new residences or upgrade residences that meet or are modified to meet standards that make the residences more accessible for elderly and disabled persons.

John DiTomasso, Associate State Director of Advocacy for AARP Rhode Island, said AARP Rhode Island helped write this bill. They met with McNamara and put together a bill from previous years that had been introduced by another group and made a number of changes, which changed it into a bill DiTomasso feels is much more clear. He said passing the Livable Home Tax Credit Act would be a win-win not only for the state’s senior population but to all taxpayers.

“Home accessibility modifications will allow older Rhode Islanders to stay longer in their communities and their homes instead of a nursing home,” he said. “Rhode Island taxpayers pay millions into Medicaid costs for nursing home care. By having older Rhode Islanders stay in their homes, it reduces the taxpayer cost.”

DiTomasso said that a recent housing report states that in the next 15 years the 45-65 age group is projected to increase by 11 percent and the 65 age group by 40 percent. That’s because there is a large group of baby boomers crossing over into that population every day, DiTomasso said. He added that Rhode Island has the largest 85 percentage population in the entire country

“You need housing that addresses that,” he said.

There are instances of multigenerational housing, where people living with their parents in their upper 80s or 90s can share expenses. But accommodations, like widening corridors and doorways, ramps and wheelchair access, keeping bathrooms at a zero step level, and other permanent changes have to be made in that home for an older person to stay there, he continued.

“We’re actually creating an inventory of these homes that will be in demand because of this population increase. We need to have housing to accommodate these people or else they will end up in nursing homes or exhaust all of their personal savings and end up on Medicare,” DiTomasso said. “More importantly, [older citizens] would rather live in their home or community. That’s what the bill helps them do.”

DiTomasso adds that the tax credit can apply to the taxpayer who pays for it, so the bill can also provide relief to caregivers who pay “thousands out of pocket” for their loved ones. Furthermore, homes that are accommodated for older citizens can help reduce falls, which DiTomasso said are the leading cause of injury hospitalization for people age 65 and older. “Many of these people go from hospitals to nursing homes for rehab and never make it back home,” he said.

The Livable Home Tax Credit Act has been referred to the House Finance Committee and is co-sponsored by Representatives Julie Casimiro, Lauren Carson, Camille Vella-Wilkinson and Joseph Solomon Jr. DiTomasso said AARP Rhode Island is currently looking at building a large coalition of groups to support the bill.

Another bill, 2017-H 5024, would increase the exemption for retirement income from state income tax from $15,000 to $30,000 starting in 2018. It has been referred to the House Finance Committee and is co-sponsored by Representatives Grace Diaz, Michael A. Morin, Mary Duffy Messier and Robert B. Lancia.

Another bill, 2017-H 5426, would establish a 100 percent tax credit against the personal income tax liability for persons with a disability affecting their ability to drive a motor vehicle and for persons 65 years of age and older relating to any fees and/or costs incurred in the modification of a motor vehicle and/or training to retain their motor vehicle registration and/or driver's license per rules and regulations promulgated by the tax administrator. The bill has been referred to the House Finance Committee and is cosponsored by Representatives Lauren Carson, Deborah Ruggiero, Gregg Amore and Mia Ackerman.

Comments

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  • davebarry109

    So Abortion Joe wants to help the old but still kill the unborn?

    Tuesday, March 14, 2017 Report this

  • davebarry109

    So Abortion Joe wants to help the old but still kill the unborn?

    Tuesday, March 14, 2017 Report this

  • richardcorrente

    Dear State Rep McNamara,

    Anytime any of our elected officials are working on a bill that will "Cut - taxes, Cut - Spending" I am all for it.

    Congratulations on your legislation that promises to do just that.

    You are a don't -tax, don't-spend Democrat, much like John Kennedy who wrote the Income Tax Reduction act in 1960.

    The taxpayers certainly deserve this break. Thank you Joe, for delivering it to them.

    Happy Spring everyone.

    Rick Corrente

    The Taxpayers Mayor

    Wednesday, March 15, 2017 Report this

  • Thecaptain

    Interestingly enough, Joe McNamara's car tax bills are up to date. Unlike others!

    Wednesday, March 15, 2017 Report this