[Congressional Record Volume 145, Number 34 (Thursday, March 4, 1999)]
[Extensions of Remarks]
[Page E345]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             SENIOR CITIZEN PROPERTY TAX REDUCTION VOUCHERS

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                          HON. RICHARD E. NEAL

                            of massachusetts

                    in the house of representatives

                        Thursday, March 4, 1999

  Mr. NEAL of Massachusetts. Mr. Speaker, today I am introducing 
legislation along with several of my colleagues in the Massachusetts 
Delegation to alter the federal tax treatment of real property tax 
reduction vouchers received by senior citizens for volunteer work.
  Several towns in Massachusetts have tried to ease the problem senior 
citizens who live on fixed incomes face due to rising property taxes. 
These towns have allowed senior citizens to perform volunteer work for 
the town in exchange for a voucher that reduces their property taxes by 
up to $500. Seniors have volunteered in libraries, recreational 
centers, parks and senior centers in exchange for these vouchers.
  The House of Representatives of the Commonwealth of Massachusetts 
passed a bill last year to exempt these vouchers from income for 
purposes of the State income tax. While the State Senate did not take 
up the bill last year, I am informed that this issue will be brought up 
again in the State Legislature this year.
  The legislation I am introducing would exclude from gross income 
vouchers issued by a government unit and received by senior citizens in 
exchange for volunteer work. The voucher could only offset real 
property taxes imposed by the government unit that issued the voucher, 
and no real property tax deduction would be allowed to the extent of 
the amount excluded from gross income by the voucher. The legislation 
also exempts these vouchers from employment taxes, and senior citizens 
who are at least 65 are eligible.
  Mr. Speaker, this legislation enhances an important and creative 
program being implemented in many towns in Massachusetts. I very much 
hope we can address this issue this year, and encourage other towns in 
Massachusetts and across the country to ease the financial plight of 
many of our senior citizens.

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