CHICOPEE — The city has adopted two new tax relief programs and modified three others to help veterans, low-income residents and owners of very small businesses.

The City Council unanimously voted to support all five proposals Tuesday night.

“It will help people stay in their homes,” Mayor John L. Vieau said. “We are really trying to help our older adults on fixed incomes.”

One of the new programs is designed to help veterans and is similar to the senior work-off program that allows low-income people over 60 to volunteer up to 66 hours for the city to earn $1,000 off their property bill. The work-off program, which was revived this year after being put on hold during the pandemic, has eight participants, Assessor Laura McCarthy said.

The newest program is designed for veterans of all ages who will volunteer a maximum of 100 hours to earn a $1,500 reduction on their property tax bill.

There are nearly 500 Chicopee veterans who would be eligible but the city will start with five to 10 volunteers. A committee with representatives from the assessors, veterans and treasurer’s departments will be formed to work out the details of the program, McCarthy said.

The program is being created in conjunction with the Veterans Services Office and the people selected will volunteer in that department, which can use some help especially, with maintaining veterans’ graves, said Stephanie Shaw, veterans services director.

“I think it is a significant moment in the city’s history given our background as a military community with a number of veterans,” Councilor Joel McAuliffe said.

The City Council also agreed to exempt the tax on personal property for small businesses which have less than $2,000 in personal property for the first time.

“It helps smaller businesses that have older equipment and gives them some much-needed relief,” she said.

It will help mainly one-person businesses such as a massage therapist, a lawyer, an accountant and others who have little more than a desk, chair and computer, she said.

The taxes the city receives on personal property is minimal with someone who has $2,000 worth of equipment receiving a $64 bill and will give needed relief to the small businesses. While the assessors’ office will still have to track those businesses yearly it will also save the city the cost of processing bills that can be as low as $15, she said.

The city is also upgrading its senior tax exemption program due to inflation and increases in tax bills over the years, McCarthy said.

The program offers elderly homeowners who have limited assets and income a tax exemption of $1,000 a year, which is an increase from the past $500.

“It is for elderly people who need the most help paying their taxes. It is usually people who are relying solely on Social Security,” McCarthy said.

The cost to the city is nominal since the state will reimburse 50% of the reimbursements. Based on the number of applicants from last year the cost should be no more than $175,000, McCarthy said.

“It is going to help a lot of people who are living on the edge and that will help the city,” Councilor Mary-Elizabeth Pniak-Costello said.

The city is also upgrading a second program designed for low-income senior citizens which allows people to defer their tax payments until their home is sold. Previously a person could only earn $20,000 a year to be eligible, but now that amount has been raised to $64,000 a year.

The city is also reducing the interest rate it charged on the unpaid taxes from 8% to 2%, which is more realistic since rates have been below 8% for years and many people decided against the program because of the high interest rate, McCarthy said.

“We will get the money in the future,” McCarthy said. “We have five people who have done this and this is an opportunity to help more people.”

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