Paying our fair share

[Lee Chowaniec]

Lancaster residents are repeatedly reminded by the town of the importance of everyone paying their fair share in taxes. Too often taxpayers do not hold the town accountable in ensuring everyone is paying their fair share in taxes and/or they are not subsidizing programs that diminish the town’s wealth and tax base.

With the tentative 2022 town budget weeks away from public purview, residents should have some knowledge on how the tax revenue is gathered, how their taxes are being spent, and whether everyone is paying their fair share.

Some research was in place after listening to the recent town board meeting recording where Councilmember Robert Leary questioned the reasoning of IDA continuance on a project where the original project sponsor has been replaced by a more affluent corporation that should not get public assistance.

Lancaster Industrial Development Agency (LIDA)

Councilmember Robert Leary’s questioning why the town’s Industrial Development Agency (LIDA) does not revoke the $1 million PILOT approved for a solar energy startup entity with limited funding needing the IDA to make the project viable. AC Power 14 was purchased the day following AC Power 14’s granting of a Special Use Permit. The project purchaser, Catalyze Holdings, is a multi-billion Corporation requiring no public funding to make the project viable.

Tops Markets is also looking to extend the property tax breaks it receives on its Lancaster warehouse to keep it competitive as the supermarket chain prepares to merge with Price Chopper.

Tops wants to extend tax breaks on Lancaster warehouse ahead of Price Chopper merger | Business Local | buffalonews.com

Should town taxpayers subsidize a business so they can be more competitive to aid a merger? What is the cost-benefit analytics to justify this $3 million IDA extension?

https://buffalonews.com/business/loc...ign=user-share

In 2020, there were 69 Municipal IDA’s paying $577,144 in PILOTS (payments in lieu of taxes) to the town – does not include PILOT payments to the county and school district. There were also 9 not-for-profit entities receiving IDA’s and paying PILOTS of $250,000. A lot of forgiven tax obligations without much public oversight.

Condominium Law 339-y tax breaks

In Lancaster there are currently 893 parcels with condo status totaling an assessed value of $115,776,500. The average assessment reduction is estimated at 40%. That implies a total market value near $200 million and where an estimated $80 million in property tax obligations to town, county and school districts are being exempted.

HOA unit owners are deserving of exemptions based on cost of services not provided by the town – infrastructure repair / replacement, snow removal, etc. Too often the tax breaks associated with assessment reductions far exceed the cost of services not provided by the town – often exceeding the HOA fee.

Currently, units receiving condo status are assessed at 55% market value. The resulting tax breaks are out of line. NYS Assembly member Monica Wallace is looking into the disparity. Good luck, Ms. Wallace. Three years ago the public was informed that once the NYS Senate came under the control of the Democrats they would follow up with a bill passed by the Assembly to give municipalities a say in the process and format. Crickets since then!

Other

According to the 2021 town exemption impact report, there are 3,995 exemptions for myriad reasons, totaling $507,506,095, 11.26% of value exempted.

Our town fathers have promised us transparency and fiscal responsibility. We count on their oversight!

As for fairness, fairness is in the eye of the beholder.

Useless information? Hopefully, not to all.

[grump]

Gee, Lee, if fairness is in the eye of the beholder, and condo owners think that condos are fairly taxed as is, then that makes the taxation fair and it pretty much end your argument.

[Lee Chowaniec]

Gee, Lee, if fairness is in the eye of the beholder, and condo owners think that condos are fairly taxed as is, then that makes the taxation fair and it pretty much end your argument.

That's exactly what I said fairness is in the eye of the beholder. You believe condos assessed at 55% of market value is fair, that ends the argument for you - not for me and many others. who have to unfairly pay more in taxes. There is not one assessor I ever spoke to who doesn't believe the system needs to be reformed.

[mark blazejewski]

With the tentative 2022 town budget weeks away from public purview, residents should have some knowledge on how the tax revenue is gathered, how their taxes are being spent, and whether everyone is paying their fair share.

I would like a full explanation as to how the monies gathered from dog licensing and fines are distributed.

I ask this question because of these changes to NY State guidelines:

Municipalities, which sell the licenses, will be taking over Jan. 1 the responsibility for renewals, tags and administering a database of licenses. In turn, the municipalities will keep all the fees collected.

Currently, three levels of government share dog license fees – the local municipality gets 53 percent, the county receives 30 percent and the state keeps 17 percent.

Reference: https://www.syracuse.com/news/2010/0...ng_out_of.html

[grump]

That's exactly what I said fairness is in the eye of the beholder. You believe condos assessed at 55% of market value is fair, that ends the argument for you - not for me and many others. who have to unfairly pay more in taxes. There is not one assessor I ever spoke to who doesn't believe the system needs to be reformed.

And any assessor will tell you that there is a remedy available….homestead taxation. It’s currently on the books. Do any of the assessors who whine and bitch about condos ever explain why they don’t have their towns adopt homestead taxation?

[WNYresident]

https://smartasset.com/taxes/what-is...he%20exemption.

Is this what you are referring to?

[Lee Chowaniec]

https://smartasset.com/taxes/what-is...he%20exemption.

Is this what you are referring to?

Thank you for providing that information, Res.

I am familiar with Homestead Tax Exemptions. The chart provided in your post lists the following available exemptions for New York State.

New York Property Tax Exemptions

A variety of exemptions are available for seniors, veterans, persons with disabilities, and agricultural properties. Homeowners earning less than $500,000 can qualify for the School Tax Relief (STAR) credit.

In its budget the Town Of Lancaster lists 50-line items of exemptions that total 3,995 exemptions that removes $507,506,995 of Equalized Value (11.28%) from the tax roll. I find no mention of the 893 parcels with condo status totaling an assessed value of $115,776,500 – full market value of near $200,000.

Enlighten us grump of what municipality you refer to using the Homestead Act and its impact on the condo law. I will be sure to pass this on to our assessor and others as well. Produce the ‘on the books’ legislation that pertains to avoiding the NYS Condominium Law 339-y ordinance you speak of..

[grump]

Lee, I would be happy to do it but why don’t you call one of these angry, righteous assessors and ask them. When you do that you can also ask why they never mention it.

[Lee Chowaniec]

Lee, I would be happy to do it but why don’t you call one of these angry, righteous assessors and ask them. When you do that you can also ask why they never mention it.

I have contacted two assessors whose opinion I respect - and who opine the current Condominium Law 339-y is unfair and needs reform.

The Homestead taxing system is complex and guarantees no across the board fair tax relief.

Buffalo, Tonawanda and Lackawanna use the Homestead tax methodology. Tonawanda and Lackawanna have no condos. Buffalo does and I am not familiar on how they manage the complex system.

Through the 15 years I have taken interest in the condo assessment law I have spoken to numerous town assessors when attending meetings on the regulation. It was found onerous by every assessor. Lancaster as well as other municipalities have written to the state memorializing their objections to the fairness of the system. Democrats promised to reform the law if they took control of the NYS Senate and Assembly. That happened three years ago and still crickets!

[grump]

Whether any particular municipality has condos has nothing to do with the fact that homestead taxation eliminates the condo exemption. They didn’t tell you that, did they. And the fact that assessors find it onerous has absolutely nothing to do with whether it accurately reflects the tax fairness of the law. More likely it means that it creates more work for assessors.

[grump]

Whether any particular municipality has condos is totally immaterial to the applicability of homestead taxation to condominiums. That assessors find the condo assessment rules onerous says nothing about the relative fairness of the system or the rules. All it shows is that it makes the assessors do some additional work. And you know why the assessors never recommend homestead taxation to town boards and why town boards don’t enact it? Because they would have to take the heat for from condo owners and business owners. They’re political cowards who want to push the burden onto someone else…state legislators.

[Frank Lee Blunt]

They’re political cowards who want to push the burden onto someone else…state legislators.

That pretty much says it all

[gorja]

Here's a good read on page three -
https://www.townofossining.com/cms/a...tudy-2019/file

[grump]

https://smartasset.com/taxes/what-is...he%20exemption.

Is this what you are referring to?

No, it’s not. For the most part in NYS any homeowner can qualify for those in they meet any eligibility requirements, Eg. veteran status for veteran exemption, income limits for STAR, etc.