Question: Homeowners and businesses pay taxes on the assessed value of their property. As a result, property taxes can be a problem for elderly homeowners who are on a fixed retirement income. Whereas these retirement incomes remain basically constant, because of rising real estate prices, the property taxes in many areas of the country have risen dramatically. In some cases, homeowners are required to sell their homes because they can't afford the taxes. In Phoenix, Arizona, government officials are considering giving certain elderly homeowners a property tax reduction based on income. One proposal calls for all homeowners over the age of 65 with incomes at or below the 20th percentile to get a reduction in property taxes. A random sample of 50 people over the age of 65 was selected, and the household income (as reported on the most current federal tax return) was recorded. These data are also in the file called Property Tax Incomes.
Use these data to establish the income cutoff point to qualify for the property tax cut.
