Property Tax s Presented to the Monroe County School Boards Association November 13, 2014 Presented by: Lou Alaimo, Assistant Superintendent Brighton Central School District
Discussion Items Overview of the Board s role related to property taxes Types of exemptions and current impact Veterans Monroe County School Boards 11-13-2014 2
Important Relationships Tax Levy = Amount of money raised by the school district to balance its budget after all other revenues are considered Tax Levy = Budgeted Exp., Less State & Local Revenues Tax Rate = Rate per $1,000 of assessed value applied to every parcel in order to collect the tax levy. Tax Rate = Tax Levy / Taxable Assessed Value X 1,000 Tax Bill = Taxable Assessed Value / 1,000 X Tax Rate Monroe County School Boards 11-13-2014 3
Taxable Assessed Valuation = Taxable Assessed Valuation Assessed Valuation as Determined by the Assessor(s) Less: s Approved by State, County, Town, and School District. Monroe County School Boards 11-13-2014 4
FACTORS TO CONSIDER Trends in Tax Base 2,000,000,000 1,800,000,000 1,600,000,000 +0.4% +0.8% +0.1% +1.0% +0.8% +6.6% -5.8% +3.6% 1,400,000,000 1,200,000,000 1,000,000,000 800,000,000 600,000,000 400,000,000 200,000,000-2010 2011 2012 2013 2014 Brighton District #2 Monroe County School Boards 11-13-2014 5
Types The Board of Education has authority to grant the following exemptions: Certain PILOT Agreements Aged-Income Disability Veterans New in 2014 Monroe County School Boards 11-13-2014 6
Profile s by Category School District Owned Non-Profit Various Non-Profit Religious NYS Owned Local Public Authority Municipal IDA Total % of Tax Base Exempt Brighton = 17.3% District #2 = 12.0% Agricultural Town and County Owned Aged-Income $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 Thousands District #2 Brighton Monroe County School Boards 11-13-2014 7
Aged-Income Eligibility Owned by person age 65 or older whose income does not exceed the maximum established by local option. Annual Income Scale Min Max % Exempt $ - $ 29,000 50% $ 29,001 $ 30,000 45% $ 30,001 $ 31,000 40% $ 31,001 $ 32,000 35% $ 32,001 $ 32,900 30% $ 32,901 $ 33,800 25% $ 33,801 $ 34,700 20% $ 34,701 $ 35,600 15% $ 35,601 $ 36,500 10% $ 36,501 $ 37,400 5% Monroe County School Boards 11-13-2014 8
Varying Impact Reduction in Property Assessments % Exempt Brighton District #2 50% $ 9,099,150 $ 23,552,515 45% 312,660 1,161,609 40% 551,400 1,885,752 35% 640,850 1,136,124 30% 384,480 994,523 25% 264,000 959,411 20% 79,740 524,200 15% 97,785 393,301 10% 30,200 316,914 5% 62,400 160,274 $ 11,522,665 $ 31,084,623 Impact on the Tax Rate $ 0.17 $ 0.32 % of Current Tax Rate 0.63% 1.4% Monroe County School Boards 11-13-2014 9
Alternative Veterans Chapter 518 of the Laws of 2013 Signed by Governor Cuomo December 18, 2013 Partial Property Tax for Qualifying Veterans Previously counties, cities and towns could provide this exemption. Schools are now authorized to provide. Monroe County School Boards 11-13-2014 10
How it Works: Alternative Veterans Eligibility based on service during a period of war percentages and amounts based on service and disability: Non-Combat Zone or Combat Zone and Service Related Disability Unlike Aged, there is no income limit, not means tested Monroe County School Boards 11-13-2014 11
Alternative Veterans Who is a Qualifying Owner? Qualified owner is a veteran, the spouse of a veteran or the unremarried surviving spouse of a veteran Property must be primary residence of the qualified owner A veteran is a person who served in active military service during a period of war Monroe County School Boards 11-13-2014 12
Veterans Eligibility Criteria Alternative Veterans Honorable discharge from service Active duty status during wartime for dates specified Veterans receiving Expeditionary Medals who qualify under the alternatives to period of war service may also qualify, i.e. Lebanon, Grenada and Panama Generally, reservists are not eligible Certain family members of veterans may be eligible. Monroe County School Boards 11-13-2014 13
Period of War: Alternative Veterans World War I (April 6, 1917 November 11, 1918) World War II (December 7, 1941-December 31, 1946) Korean War (June 27, 1950-January 31, 1955) Vietnam War (February 28, 1961-May 7, 1975) Persian Gulf Conflict (on or after August 2, 1990) Monroe County School Boards 11-13-2014 14
Tax Alternative Veterans Limited to primary residence Based on a percentage of assessed value subject to maximum levels of exemption 15% exemption for wartime service 25% exemption for combat zone service Up to 50% exemption for service connected disability Monroe County School Boards 11-13-2014 15
Alternative Veterans Comparative Census Based on Town and County Data: Type # Parcels Brighton/District #2 War Time Veteran 273 890 Combat Veteran 228 521 Disabled Veteran 52 147 Total s 553 1,558 Average Full AV Brighton/District #2 $197,487 $144,717 $182,707 $148,372 $195,433 $151,355 Monroe County School Boards 11-13-2014 16
What Does it Do? Alternative Veterans Lowers the tax bill for qualifying individuals Increases the tax bills of all other properties - taxes are shifted between individuals, the overall effect is neutral to the school district Monroe County School Boards 11-13-2014 17
Table Alternative Veterans Wartime 15% of Assessed Property Value up to maximum Combat 25% of Assessed Property Value up to maximum Disability 50% of Disability Rating x Assessed Property Value up to maximum Levels Decreased Option 2 6,000 10,000 20,000 Decreased Option 1 9,000 15,000 30,000 Basic Maximum 12,000 20,000 40,000 Increased Option 1 15,000 25,000 50,000 Increased Option 2 18,000 30,000 60,000 Increased Option 3 21,000 35,000 70,000 Increased Option 4 24,000 40,000 80,000 Increased Option 5 27,000 45,000 90,000 Increased Option 6 30,000 50,000 100,000 Increased Option 7 33,000 55,000 110,000 Increased Option 8 36,000 60,000 120,000 County Monroe County School Boards 11-13-2014 18
Potential Maximum Amounts Alternative Veterans Increased Option 8 Increased Option 7 Monroe County Increased Option 6 Increased Option 5 Increased Option 4 Increased Option 3 Increased Option 2 Increased Option 1 Town of Brighton Basic Maximum Decreased Option 1 Decreased Option 2 0 30,000 60,000 90,000 120,000 150,000 180,000 210,000 Monroe County School Boards 11-13-2014 19
The Shifts Taxes Alternative Veterans Tax exemptions cause a redistribution of taxes among taxpayers (tax shift) If a town s assessed value decreases then all taxpayers will need to pay more, to make up the difference, for a given amount of taxes. Tax rate per $1,000 of assessed value will increase for all taxpayers to generate the same amount of taxes. The Levy (amount collected by the school) does not change who pays does change. Monroe County School Boards 11-13-2014 20
Comparative Impact Brighton District #2 Decreased Option 1 $7.00, or 0.26% $4.00, or 0.17% Mid Range Option $21.00, or 0.8% $42.00, or 1.79% Max (County) $27.00, or 1.02% +$51.00, or 2.17% Disclaimer: The figures presented above are based on the best information we have to date, and the estimates are heavily reliant on data outside of our control which required substantial interpretation and computations. Monroe County School Boards 11-13-2014 21
Alternative Veterans Amounts/ Est. Impact for Avg Home Assessed at $200K in Brighton Increased Option 8 Increased Option 7 Increased Option 6 Increased Option 5 $54.00 $53.00 $51.00 $49.00 Increased Option 4 Increased Option 3 $46.00 42.00 Increased Option 2 $37.00 Increased Option 1 Basic Maximum Decreased Option 1 $20.00 $26.00 $32.00 % of Tax Base Reduced: Low - 0.3% High - 1.0% Decreased Option 2 $14.00 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 Amounts Thousands Monroe County School Boards 11-13-2014 22
Alternative Veterans ILLUSTRATIONS - ASSUMING MID-RANGE EXEMPTION EXAMPLE A EXAMPLE B EXAMPLE C ASSESSED VALUE $ 200,000 $ 200,000 $ 200,000 WARTIME VETERAN 15% OR $21,000 (21,000) - COMBAT VETERAN 25% OR $35,000 - (35,000) (35,000) DISABLED VETERAN ASSUME 50% UP TO $70,000 - - (70,000) TAXABLE VALUE $ 179,000 $ 165,000 $ 95,000 TAX BILL BEFORE STAR $ 4,747 $ 4,376 $ 2,519 BASIC STAR SAVINGS (779) (779) (779) $ 3,968 $ 3,597 $ 1,740 TAX BILL WITHOUT VETERANS EXEMPTION $ 4,525 $ 4,525 $ 4,525 VALUE OF EXEMPTION $ 557 $ 928 $ 2,785 Monroe County School Boards 11-13-2014 23
Impact on STAR Payments Alternative Veterans STAR payments are received by the school district from NYS for basic and senior exemptions STAR exemptions are applied after other exemptions The veterans exemption will reduce STAR payments from the state and increase the local tax burden Monroe County School Boards 11-13-2014 24
Alternative Veteran s ILLUSTRATIONS - IMPACT OF STAR LOSS NON-VETERAN VETERAN ASSESSED VALUE $ 135,000 $ 135,000 COMBAT VETERAN 25% OR $35,000 - (33,750) DISABLED VETERAN ASSUME 50% UP TO $70,000 - (67,500) AGED INCOME EXEMPTION ASSUME 50% (67,500) (16,875) SENIOR STAR (64,200) (16,875) TAXABLE VALUE $ 3,300 $ - NET TAX BILL $ 228 $ - UNUSED STAR ASSESSMENT $ (47,325) LOSS OF STAR REVENUE $ (1,255) Monroe County School Boards 11-13-2014 25
Other Unknowns Alternative Veterans The increase in tax rate from awarding veterans exemptions may increase bills through the limit on STAR savings in the 2% tax cap legislation Impact analysis can only be performed retroactively no way to project future impact Monroe County School Boards 11-13-2014 26
STAR Savings cap 2013-14 2014-15 $ Change % Change Assumed Assessed Value $ 100,000 $ 100,000 Basic STAR (30,000) (30,000) Enhanced STAR (63,300) (64,200) Tax Rate $ 25.93 $ 26.52 $ 0.59 2.28% BASIC STAR Savings (per ORPS) $ (764.00) $ (779.00) $ 15.00 2.00% ENHANCED STAR Savings $ (1,531.00) $ (1,562.00) $ 31.00 2.00% BASIC STAR Tax Bill - with Cap $ 1,829.30 $ 1,873.39 $ 44.09 2.41% Tax Shift From STAR to Local $ 13.99 $ 16.72 ENHANCED STAR Tax Bill - with Cap $ 1,062.30 $ 1,090.39 $ 28.09 2.64% Tax Shift from STAR to Local $ 110.56 $ 140.83 Monroe County School Boards 11-13-2014 27
Summary Any reduction to the taxable assessed value of the district has a direct impact on the amount of taxes paid by the community. The Veteran s will impact each district differently based on population and the assessed value of qualifying homes. The Veteran s further shifts the percentage of tax levy received from the local community compared to the State (STAR) Monroe County School Boards 11-13-2014 28
Questions Monroe County School Boards 11-13-2014 29