property taxes

City officials will consider a tax exemption for seniors over the age of 65, similar to what Genesee County passed in late February.

The county’s exemption of Section 467 of the Real Property Tax Law grants a reduction in the amount of taxes paid by senior citizens based on a sliding scale of income amounts from less than $23,800 for a 50% exemption up to $32,200 for 5%.

Deputy County Treasurer Kevin Andrews proposed the move earlier this year for the county and also emailed the city about this municipality considering doing a similar exemption, City Manager Rachael Tabelski said this week. 

“And it's something. If you'd like, we can have staff look into it and get back to you with a recommendation at a future meeting,” she said during Monday’s City Council meeting. “We do know that it would affect the taxable status of properties to the tune of about $2.6 million, but as a whole, in terms of how much our entire assessment value is, this is a very, very small percentage. So, like I said, we can come back to this if you'd like us to email the information so you can take a look at it and get a little better analysis of what that would look like if we were to implement it.”

City Council President Eugene Jankowski Jr. said that “it's definitely worth looking into” the exemption as an option for seniors to save some money.

“Anything we can do to help people keep their homes and sustain their homes,” he said. “If they’re qualified for the exemption, then they definitely should be getting it.” 

When the county approved the measure that took effect on March 1, The Batavian asked Andrews for a tangible example of how much savings that could mean for an eligible senior. At the maximum end of the scale, if the income qualifies and they were to receive 50 percent exemption on their taxes with a home assessed at $100,000, that would equal roughly a $400 savings for county tax purposes, he said. County taxes for 2024 are $5.80 per $1,000 assessed value versus city at $8.96 per $1,000.

The full table for the county is below to show how the sliding scale works:

• Less than $23,800 - 50%
• Equal or more than $23,800 but less than $24,800 - 45%
• $24,800 but less than $25,800 - 40%
• $25,800 but less than $26,800 - 35%
• $26,800 but less than $27,700 - 30%
• $27,700 but less than $28,600 - 25%
• $28,600 but less than $29,500 - 20%
• $29,500 but less than $30,400 - 15%
• $30,400 but less than $31,300 - 10%
• $31,300 but less than $32,200 - 5%

Property owners in the Batavia City School District -- still trying to come to grips with hefty increases in their assessments earlier this year – can take some solace with news that the school tax rate for 2021-22 is decreasing by almost 10 percent.

Scott Rozanski, Batavia schools’ business administrator, today informed The Batavian that the tax rate for the coming school year has been set at $19.23 per thousand of assessed value – down $2.10, or 9.84 percent, from the 2020-21 rate of $21.33.

On Thursday, the Batavia CSD board of education voted to accept the tax warrant and rate determination.

Rozanski also pointed out that the tax rate in 2020-21 was about 1 percent less than the 2019-20 figure.

“That’s two years of no direct impact (on taxes) from the school,” he said.

He did, however, acknowledge the change in assessments, indicating the average increase was 10.85 percent.

“We don’t control property values, nor the equalization rate which are both used to calculate the tax rate and can fluctuate each year,” he reported.

He said the district did realize about $750,000 more of a surplus from the previous year “so we added that to the refund back to the taxpayers.”

“With all of the federal stimulus funds, we were assisted on the revenue side,” Rozanski said, noting that the district received $2.4 million for COVID relief this year. “Without that, we would have had to make more cuts or (without cutting any positions) increase the levy by about 12 percent.”

Going forward, he said it’s a bit premature to project, but doesn’t think it will be “a concern in the near future.”

The district budget for 2021-22 is $52,096,661, Rozanski said. Its fund balance currently is at the maximum 4 percent, or about $2.1 million.

County legislators decided Wednesday to take a little more time on deciding whether to add information to property tax bills about how much of the county's property tax levy goes to funding state-mandated services.

The proposal brought to the Ways and Means Committee included line items for:

• Social Services (including Medicaid)
• Jail
• Probation
• Early Intervention
• PHC Preschool
• Mental Health
• Public Defender
• Assigned Counsel
• Community College Tuition (excluding GCC sponsor share)
• District Attorney Salary

Members of the committee were not entirely comfortable with the entire list, or even whether the information disclosure should be included on the tax bill at all, which only goes to property owners whose taxes are not paid by mortgage holders.

Those services eat up $23 million, or 76 percent of the county's tax levy. 

New York State mandated services -- services that the state requires the county to provide, or services the county would provide anyway but the state mandates that they be delivered in a specific way and at a specific cost -- are a long-standing complaint of local legislators.

The proposal, some legislators think, would help inform local taxpayers that the county's elected officials have little say in how their money is spent.

Legislator Andrew Young seemed the most uncomfortable with including the information at all on the tax bills.

"It just seems like whining to me," Young said. "It’s just like when I ask Steve Hawley (about Albany), ‘well, we’re stuck. It’s somebody else’s fault.’ What do we really get out of it? I’m not sure we’re really sharing any information that anybody understands, so we’re really just feeling better … I don’t know, it just feels like whining to me.”

Committee Chair Marianne Clattenburg thought it important that taxpayers understand how Albany constrains county government but wasn't sure the list entirely accomplished that goal since some of the items are functions of government the county would provide without state mandates, but perhaps not in the way or at the price tag the state dictates.

Young noted that the county also receives a lot of grant money for things like roads and bridges from the state; perhaps that evens out the mandated expenses.

"It’s really about control, right?" Young said. "Let’s just assume it’s even. It just means they get to control us."

Clattenburg responded, "It’s about what a local government decides to do and how to do it. That is really what most of the budget is. It’s about how New York City does things and we’re not New York City, so it’s really frustrating.”

She said she did think it's important for citizens to understand how the local government spends property tax revenue.

"Maybe if we kept (the list) to just mandates we really struggle with, Medicaid, early childhood, all these mandates associated with law enforcement, the district attorney, assigned council, and all of that -- the things that we are required to do, that if we could do them ourselves we might design a different way," Clattenburg said.

Legislators Shelly Stein and Gregg Torrey both spoke in favor of including information about mandates expenses on the tax bill.

Stein said she knows people who look at their tax bills and will be interested in information on the back about how the money is spent.

In order for the county to start including such information, local law will need to be amended. To do that, the Legislature would need to pass a resolution in November and hold a public hearing in December and vote for the change before January in order for the July tax bills to carry the information.

That isn't likely to happen since Ways and Means tabled the resolution Wednesday.

"I think we have to decide what’s going to be on the list and I think everybody needs input into that and I would like to hear every legislator, not just the committee," Clattenburg said.

The county is looking at a 2017 budget that will reduce the county's tax rate by 23 cents per thousand of assessed value, but that won't necessarily be good news for all local property owners.

What each property owner ends up paying in property taxes will depend on any changes in their individual assessed value.

If your assessed value went up, depending on the size of the increase, the reduction in tax rate could hold your county tax bill even with 2016, unless your assessment increased significantly, then your overall county tax bill could increase. If you're assessed value stayed the same or went down, your county tax bill could decrease.

The county's budget is still in an early stage draft form, but County Manager Jay Gsell told legislators yesterday that what they're looking at is a possible tax rate of $9.63 up to $9.69, and even that range is subject to change as more numbers come in.

Overall, the total assessed value of all properties in Genesee County increased by $96 million. Some of that increase relates to assessors deciding some properties are now worth more money; some of it is due to new construction and some to temporary tax exemptions, such as PILOTs granted by GCEDC, expiring.

Under the state's complex property tax cap formula, the county is limited in how much of an increase in assessed value it can capture in revenue.

Roughly speaking, based on currently available calculations, the county probably can't go with a tax rate higher than $9.69.

The current rate is $9.86 per thousand.

A rate of $9.63 to $9.69 also fits with Gsell's goal of holding county spending for 2017 pretty much on par with 2016.

The instructions to department managers has been to hold the line on spending, Gsell said.

One of the big unknowns for the county as it tries to map out expenses for 2017 is the status of the Genesee County Nursing Home. The property has been sold, but the deal can't close until the State Health Department approves a certificate of need for one wing of the home for the new owner. There seems to be little progress with the state on that front and legislators are getting antsy about the lack of resolution. The unresolved issue may require legislators to budget for that expense in 2017.

UPDATE 2:30 p.m.: The following is the result of a discussion via e-mail today with Kevin Andrews, the deputy county treasurer.

The total assessed value of all properties in Genesee County has increased by $160 million. The revised number for how much of that is taxable by the county is now about $80 million.

As for the $80 million in increased assessed value, that is because of various exemptions, such as PILOTs, but also nonprofits and government-owned property are tax exempt, so there are other programs that property owners can apply for that award tax exemptions. These include a veterans exemption for homeowners, an exemption available to farms in some circumstances, and one for seniors below certain income levels, and various municipal exemptions.

The tax rate for some residents is also affected by a state formula for equalization of rates in different towns. If a town's assessments are below market rate, the county rate is adjusted accordingly.

On that point, Andrews said, "It is tough to say for sure what the tax impact will be in those towns without looking into those in a little more detail, but my guess would be that the equalization rate didn’t go down by too much, so they probably will not see an increase in taxes in those towns with a lower tax rate (unless you are a property owner whose assessment went up due to, say, new construction), but that is just a guess."

These figures are also still subject to change.

Approximately 26 percent of the properties in the county had some sort of increase in assessed value. About $14 million of the increased assessed value is because of new construction and improvements, less losses on demolition or destruction of property (fires, etc.) and properties moving from profit to nonprofit status.

About $146,000 of the increase in assessed value is the result of market-rate adjustments.

Because of updates on numbers, Andrews now estimates that stay-even tax rate is about $9.66, or $9.67.

This information comes from Assemblyman Steve Hawley's office.

Assemblyman Steve Hawley (R,I,C-Batavia) recently attended a press conference in support of immediate action on a property tax cap. The legislation was barred from a vote by the Assembly Majority, who passed rent regulations to control the cost of living in New York City instead.

“Time after time, poll after poll, the people of New York have expressed their overwhelming support for a property tax cap,” Hawley said. “As a representative for the people of Western New York, it is my responsibility to heed the call of my constituents, and I can hear them loud and clear. They are saying that we need to drive down the cost of living for all New Yorkers, not just those in the five boroughs of New York City.”

Hawley explained the litany of issues that coincide with the passage of a property tax cap, which would help families, businesses and local governments reduce the cost of living here in Western New York.

“The reason New York is in such desperate need of a property tax cap is because of the unfunded mandates handed down by state government to our villages, towns, cities, counties and school districts,” Hawley said.

“Mandate relief and property tax caps are not separate issues. They are inextricably linked and must be dealt with in tandem. It’s time to let our local governments run themselves without the onerous ‘Big Brother’ interference from the state Capitol that drives our property taxes in Western New York through the roof.”

Participants at the press conference included Brian Sampson, CEO of Unshackle Upstate, a bipartisan business coalition that awarded Hawley a perfect score on their 2010 Legislative Scorecard. Out of 212 state legislators, Hawley was one of only two that received a perfect score.