Veterans tax exemption proposal hits roadblock

While the nation prepares to celebrate its independence, efforts to obtain a tax break for Johnston veterans disabled from their services were dealt a setback.

For the second time in less than a year, Commander H. Jake Taraksian of the Veterans of Foreign Wars (VFW) Lymansville Memorial Post in North Providence made a plea to the Johnston Town Council seeking tax relief for the Johnston veterans who are 100 percent disabled. Last September, Taraksian- who served in the Army during Vietnam and is also the Jr. Vice Commander of the State of RI VFW-asked the council to sponsor an ordinance to give disabled veterans a 100-percent tax exemption.

“At that point, after I read my paper on exemptions for veterans, the Town Council seemed very enthusiastic about giving an exemption for the 100 percent disabled veterans in the town, but nothing ever came of it so I’m back again,” said Tarkasian during the June 12 council meeting.

According to Tarkasian, this group of veterans currently receives a $290 property tax exemption each, compared to a $1,126 exemption received by seniors in the town.

“I ask you to respect all the disabled veterans in the town. They have been wounded in combat, they’ve blown up by IEDs, they have suffered from traumatic brain injuries, they’ve lost arms and their legs, and they suffer from post-traumatic stress disorder which in most cases lead to suicide,” he said.

The Department of Veterans Affairs (VA) assigns disability as a percentage, ranging from zero to 100. To qualify for disability compensation, one must have a disability the VA determines was “incurred or aggravated as the result of” military service, and deemed to be “service connected.”

The VA also uses service connection to determine entitlement to other benefits, including health care and vocational rehabilitation. A medical examination must be completed in order to evaluate and assess the severity of disability before a rating can be determined based on the VA’s disability rating schedule.

“Can we not give our veterans an increase in their property exemption? I ask the Town Council to look at our disabled veterans and our returning veterans and give them a hand up. They truly deserve everything we do for them,” said Taraksian.

Taraksian was joined by Martin Cappelli, a Vietnam combat veteran and lifelong Johnston resident. Cappelli has presented similar measures before the Cranston, North Providence, and Scituate town councils, and plans to take his cause throughout the state.

“I believe that veterans who have willingly and honorably served this great country deserve to be supported by all of us. With your help in supporting this it would be extremely helpful to these vets and be greatly appreciated,” said Cappelli.

Kim Gallonio, Johnston’s tax assessor, performed an impact study of the veteran’s request following their proposal last September. In her presentation of the study before the council during the meeting, Gallonio stated that there are currently 40 veterans living in Johnston who are 100 percent disabled. With Johnston’s current tax rate and veteran’s exemption, they receive $10,974.01 off of the total budget.

With a proposed 100 percent exemption, Gallonio said that total would increase to $222,347.37, a loss of $211,373,36 in revenue for the town.

“The town can’t absorb that kind of loss without increasing taxes to meet the budget, as it is we’re losing money from the state,” said Gallonio.

Gallonio also said that the town is “more than generous” with their exemptions, citing the Homestead exemption, a senior citizens exemption, a veteran’s exemption on real estate which equates to $4,970 off of a property’s assessment and a $3,000 exemption off of a motor vehicle’s assed value, amongst others. She also stated that the disabled veteran’s exemption takes $9,980 off of a property’s assessed value.

“In my office, we are very stringent with our qualifications on these exemptions. Any time we give an exemption to one taxpayer, the exemption is taken off the total revenue which in turn increases the taxes for everyone else,” said Gallonio, who added that the town hosts Operation Stand Down, a non-profit that assists veterans, which are tax exempt.

“As the Tax Assessor, my job is to tax people fairly and equally. I cannot in good conscience justify a total tax exemption for disabled veterans. I do believe veterans deserve all the benefits they are entitled to, I am extremely grateful to every veteran who has served this country,” said Gallonio, who added that more should be done to assist them. “But I believe these benefits should come from the Federal government, not local government.”

Gallonio told the council that if a 100 percent exemption was permitted, that it would entice more candidates to come to town to benefit from it, which would cause a disproportionate shift in taxes. She said she did not see the proposal as a fair assessment to the town as a whole.

“I highly recommend that this proposal does not pass for the interest of all taxpayers of Johnston,” said Gallonio.

As the discussion came during the public comments section of the Town Council meeting no immediate action was taken by the council, which took the recommendation under advisement.