Veterans Tax Exemption Information Forum September 20, 2016
Tonight s Agenda Welcome Board of Education President Peter Sawyer Overview of Veterans Exemption Assistant Superintendent Christopher Abdoo Background of Veterans Tax Exemption Act of 2013 Eligibility Criteria What it means for school districts Understanding Tax Rate With & Without Veterans Exemption Assistant Superintendent Christopher Abdoo Summary of tax rate changes & estimates Tax impact on non-qualifying residents Process moving forward Question & Answer Session
Meeting Process We are using online meeting software so people can participate via their computers. Thank you for your patience as we accommodate both audiences: those in the middle school library and those participating online. Goals tonight are to share information and answer questions about the Veterans Tax Exemption Act. To pose a question you can: Go to the podium and use the provided microphone Online viewers can type questions in the comment box on their computer screen. (As is customary with privilege of the floor at board meetings, we kindly request that residents state their full name before asking questions.)
Alternative Veterans Tax Exemption Act First Enacted in 1984 Only municipalities (counties, cities, towns and villages) were allowed to offer the exemption Law was amended in December 2013 to allow school districts to offer the exemption Boards of Education may change the exemption level or repeal the exemption in the future
Alternative Veterans Tax Exemption Act Information we have received on the criteria for eligibility is on the handout. All of this information should be confirmed with local assessors
Veterans Exemption for Those Who Meet the Criteria Limited to Primary Residence Equalization rates will apply to exemption amounts Based on a percentage of assessed value subject to maximum levels of exemption: 15% for wartime service 25% for combat zone service Up to 50% for service-connected disability Note: Qualifying veterans should confirm all of the above information with their assessor.
What the Exemption Means for BH-BL Exemption is not reimbursed to the school district by the state (unlike STAR exemptions, which are). If enacted, a redistribution of taxes among taxpayers will occur. (i.e., Those who qualify for the tax exemption will see their taxes lowered, all others will see their taxes increase.) Board of Education must decide whether or not to offer this exemption and if so and at what level.
Tax Rate Without Veterans Exemption
Three Pieces of Information 1) Tax levy of the school district 2) Assessed value of property in the school district separated by town 3) Equalization rate for each town
Summary of Tax Rate Changes Board approved tax levy increase of 1.32% remains unchanged. Tax rate changes are as follows below: Town 2015-2016 Tax Rate/$1,000 of assessed value 2016-2017 Tax Rate/$1,000 of assessed value Actual Change Ballston $22.0256 $21.9313-0.43% Charlton $29.3368 $29.3026-0.12% Clifton Park $36.4181 $36.3758-0.12% Glenville $22.2342 $22.4445 0.95% Weighted Average (-0.43*0.3762) + (-0.12*0.2015) + (-0.12*.0608) +(0.95*0.3615) 0.15%
Impact of Basic STAR Home in Ballston Assessed for $192,400 School taxes due $4,219.58 Basic STAR reduction for Ballston $763.00 Net taxes paid by homeowner $3,456.58 Amount reimbursed to district by the state $763.00
Impact of Enhanced STAR Home in Ballston Assessed for $192,400 School taxes due $4,219.58 Enhanced STAR reduction for Ballston $1,529.00 Net taxes paid by homeowner $2,690.58 Amount reimbursed to district by the state $1,529.00
Scenario for Low Income Senior Citizen (Annual Income less than $29,000) Home in Ballston Assessed for $192,400 50% Reduction in Assessed Value per BoE Resolution - $96,200 School taxes due $2,109.79 Estimated Enhanced STAR reduction for Ballston (may be higher) $1,529.00 Net taxes paid by homeowner $580.79 Amount reimbursed to district by the state $1,529.00 Amount redistributed to other taxpayers $2,109.79
Veterans Tax Exemption Act Does NOT impact the district s tax levy. If enacted it will lower tax payments for qualifying veterans by allowing them to exempt part of their assessed value from school taxes. (See handout). The exempt amount will not be reimbursed to the district by the state. It will be redistributed to the remaining taxpayers who do not qualify for the exemption.
Estimated number of qualifying properties According to information obtained by local assessors the following are the estimated number of households that are currently receiving a Veteran s Tax Exemption from their respective county: Ballston: Charlton: Clifton Park: Glenville: 258 properties 235 properties 48 properties 583 properties 1,124 properties district wide Total housing units in district in 2009-7,487
Changes in Assessed Value According to information obtained by local assessors the following are the estimated reduction in assessed amounts that would have applied if the board had authorized a Level 1 Veterans Tax Exemption for the 2016-17 school year: Ballston: $1,606,478 Charlton: $1,139,702 Clifton Park: $169,659 Glenville: $3,080,393
Estimated Impact on Non-qualifying Taxpayers $200,000 Market (Full) Value Home Level 1 = $16 increase Level 5 = $58 increase Level 10 = $98 increase
New Tax Rate Calculations Rate based on per $1,000 of assessed value Town 2015-2016 Tax Rate 2016-2017 Tax Rate without veteran exemption 2016-2017 Tax Rate with Level 1 veteran exemption Difference Ballston $22.0256 $21.9313 $22.0144 $.0831 Charlton $29.3368 $29.3026 $29.4136 $.1110 Clifton Park $36.4181 $36.3758 $36.5135 $.1377 Glenville $22.2342 $22.4445 $22.5296 $.0851
Estimated Impact on Other Taxpayers Tax rate percentage change before and after Level 1 veterans exemption Town Actual Tax Rate change (without veterans exemption) Tax Rate change if veterans exemption had been enacted for 2016-2017 Ballston -0.43% -0.05%.38% Charlton -0.12% 0.26%.38% Clifton Park -0.12% 0.26%.38% Glenville 0.95% 1.33%.38% Difference
Estimated Impact on Other Taxpayers Town Assessed Value of Home Equalization Rate True Value of Home Increased Tax Rate due to level 1 Veterans Exemption Increased School Taxes Paid Ballston $192,400.9620 $200K $.0831 $15.99 Charlton $144,000.7200 $200K $.1110 $15.98 Clifton Park $116,000.5800 $200K $.1377 $15.97 Glenville $188,000.9400 $200K $.0851 $15.99
Process going forward BH-BL Board of Education must decide whether or not to offer this exemption If board chooses to enact the Veterans Tax Exemption, it must: Hold a public hearing on the topic. Hold a formal vote to adopt the exemption. Choose the specific level of exemption to be offered. Decide if Gold Star parents are to be included in the exemption.
Questions & Answers
Thank you! The Veterans Tax Exemption BH-BL Community Survey can be found on the district s website, www.bhbl.org.
Process going forward We have been advised that: Qualifying veterans with approved exemptions on file with assessors do not need to reapply for the school tax exemption. New exemption applications need to be received by March 1, 2017 to be applicable for the 2017-2018 school tax year. Veterans should check with their local assessor to confirm both of these assertions.