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On August 13, the Mohonasen Board of Education set final tax rates for the 2007-08 school year.
As a result of changes in assessed values based upon the
town-wide reassessment and equalization rates, the average homeowner in the town of Rotterdam will see their tax rate at $14.6401 per $1,000 of assessed property value. Guilderland residents will see their tax rate at $18.2000 per $1,000 of assessed property value, and Colonie residents’ tax rate is set at $23.9962 per $1,000 of assessed property value.
These rates are very close to what Mohonasen projected at the public hearing to discuss homestead/non-homestead held on March 23, 2007. Unfortunately, there is some confusion because the impact notices sent out earlier in the spring by GAR Associates had incorrect tax rates.
In anticipation of the increased assessments and its impact, the district implemented all possible tax exemptions for senior citizens and people with disabilities this past February. Residents over the age of 65 and qualifying residents of any age with disabilities who have an annual income of $37,000 or less can be exempted from paying 5-50 percent of their home’s assessed value. Applications for either exemption must be filed with the town assessor’s office and must be renewed annually. The phone number for the Town Assessor’s Office is 355-7363.
Additionally, district residents already enrolled in the STAR program may apply to receive additional property tax relief this year through the
2007 Middle Class STAR rebate
program. Property owners who receive a Basic STAR exemption with an income of less than $250,000 must apply for the check because it is based on a recipient’s income. The New York State Department of Tax & Finance has begun mailing Middle Class STAR rebate applications to homeowners, which are expected to arrive in September.
You must fill out and file the Middle Class STAR application by November 30, 2007.
Senior citizens who receive an Enhanced STAR exemption will receive a rebate check automatically without needing to complete an application. To find out more information about the Middle Class STAR application process, go to
http://www.tax.state.ny.us/star/2007 or call the New York State Department of Tax and Finance at 1-877-6-STAR-NY (1-877-678-2769).
| Town |
2006-07
Final Tax Rate* |
2007-08
Final Tax Rate* |
| Rotterdam |
$538.0556 |
$14.6401 |
| Guilderland |
$18.8690 |
$18.2000 |
| Colonie |
$23.8364 |
$23.9962 |
| *
per $1,000 of assessed value |
Q. How will property reassessments
impact taxes?
A. For the past two years, the Town of Rotterdam contracted with a private company, GAR Associates, to do a townwide reassessment of all properties to bring their assessment up to full-market value. This is the first townwide reassessment in more than 50 years. Although the school district plays no role in the reassessment process, we know it is hard to grasp how reassessment will impact school taxes.
It is even more complicated than that though. Rotterdam’s town board established a homestead
tax option — which allows one tax rate for residential property
owners (homestead) and another for non-residential property owners (non-homestead). Because the town adopted this dual tax-rate option, both the Mohonasen and Schalmont school districts were required to consider the same option. Both districts held public hearings to obtain feedback from the community. Mohonasen also held an additional public hearing in the event that people could not make it to the first hearing,
and provided information on the district Web site.
Based on data and feedback
provided, the Mohonasen Central School District did NOT adopt the homestead tax option, instead choosing to retain a single tax rate, which is the way the district has always calculated taxes. Mohonasen did not adopt the homestead tax option for a
number of reasons, including:
- The data that was provided by the New York State Office of Real Property Services (ORPS) and the town were rough estimates and did not seem to match. Therefore, it was difficult to
determine the exact impact on both residents and non-residents;
- If adopted, the dual tax rates would have caused the towns of Guilderland and Colonie to see a significant impact based on the estimates given; and
- Under the dual-tax system, residents would have seen a small reduction in their tax rate, leaving the non-homestead properties in the town to shoulder a very large share of the burden. These are the same residents that our schools often approach to support fundraisers. Because many of the non-homestead properties are small businesses, this option might have forced them out of the area.
“Mohonasen had to weigh this issue very carefully in order to make a decision we felt was best in the long run for the entire community,” said Spring. “The decision was not an easy one and was made only after a great deal of discussion and thought. We were very aware of the frustration
people were feeling with the reassessment and wanted to be sensitive to the concerns of all our taxpayers while balancing what we felt would be best for our community moving forward to the future.”
“The district adopted all possible
tax exemptions and with the additional state aid that we’re getting, we tried to offset the tax burden by being conservative with our budget,” adds Spring.
One common mistake
Reassessment does not increase the amount of money that the school district collects (i.e. the school tax levy); it merely redistributes
who pays the levy in an effort to distribute the tax burden more fairly.
Specific individual tax
calculations cannot be made with certainty until late August, which is when the district will receive final
assessment figures from the town. The assessment amounts will then be used in coordination with equalization rates from the Office of Real Property Services (ORPS) to determine tax rates.
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