taxes

One of our readers recently pointed us to a study by the Tax Foundation that lists 1,817 counties across the U.S. according to the amount of property tax as a percentage of home value. Genesee County ranks 8th. In other words, 1,811 other counties in this nation pay less of a percentage of teir home value in property taxes.

Now, we've always known that we the people of western New York get shafted as far as taxes go. But it's another thing to see it quantified so starkly. Not only is Genesee County the eighth most taxed county in the country. Counties in New York make up 19 of the top 20 in the list!

Now, folks here may rank only 193rd on that list as far as amount of taxes paid (a median $2,565), but with a median home value of $95,500, that means the taxes paid total up about 2.7 percent of the home value. Wayne County is the same. Orleans County is first on the list with 3 percent. So on and so forth for our region. Just take a look.

We asked our state representatives, Assemblyman Steve Hawley, and newly-elected Senator Mike Ranzehofer, to weigh in on this. Hawley's office got back to us last week by issuing a press release on the topic. We'll include that release, entitled: "Hawley to Legislature: Stop Property Tax Rise Now," here in full.

First, however, let's here from Ranzenhofer, who spoke with us by phone today. Ranzenhofer agreed that the result of the study was not all that much of a surprise.

"Those of us who live here, work here, are well ware of the crushing taxes across the board," he said. "The only thing that's going to revitalize the area is not the suggestion of the governor to increase taxes on everything. We need to cut taxes and cut spending to encourage job growth."

We asked Ranzenhofer what he could do in the Senate to help relieve the tax burden here in Genesee County.

"One thing is my action on the state budget," he said. "It's a little disappointing that there hasn't been more done in Albany to deal with the budget and the budget deficit. We need to very strongly oppose increases in taxes, and even take it one step further and really need (to institute) across-the-board reduction in taxes. That doesn't mean shifting the burden to counties, families and business. It means streamlining every agency and department in state government."

Ranzenhofer spoke of instituting a tax cap and really following through on the threat of a hiring freeze at the state level. "We need to create a new tiered pension system," he added. "These are all things I've talked about. I hope to introduce legislation along those lines this year."

We'll keep an eye on you, Mike.

From the office of Steve Hawley:

Assemblyman Steve Hawley (R, I, C - Batavia) highlighted the recent Tax Foundation report, which announced that Orleans, Niagara, Monroe and Genesee counties all top the nation in highest property taxes as a percentage of median home value, when calling upon the State Legislature to immediately address property tax-saving measures.  The top measure hurting property taxpayers, according to Hawley, is the estimated $6 billion in unfunded mandates pushed onto local governments and, consequently, homeowners.

"Unfortunately, all we are seeing from our state's leaders right now is inaction when it comes to solving this crisis.  As always, Albany is continuing to shift the burden, and shift the blame, for property taxpayers' ever-rising tax burden.  In fact, this proposed state budget will shift nearly $4,000 per individual taxpayer.  For our state's economy to recover, Albany needs to begin taking responsibility for its spending.  We cannot afford this year's record-breaking budget proposal and we certainly cannot afford $4,000 in subsequent tax hikes," said Hawley.

According to the Assemblyman, the solution is multi-fold, which is why he has been a vocal advocate for increasing the economic viability of Western New York in order to help lower property tax costs.  The more businesses paying property taxes, the less these taxes will be burdening homeowners. However, Hawley states, "We must do more to attract business to coming to New York and we must strengthen our commitment to keeping businesses here. We cannot expect businesses to bear the brunt of the property tax burden and still offer quality jobs.  But it is vital to our long-term property tax-relieving solution that we address business growth."

Last year, as the nation was on the brink of an economic recession, Hawley was among tax reformers who asked, "Isn't it about time New York State make some tough budget choices as well?"  The federal government stepped in with their federal stimulus checks and buy-out capital for corporations, but it was still clear that states would need to rein in spending and consider stimulus plans of their own.  However, despite this, the New York State Legislature passed the most expensive budget in state history.

This year's Executive Budget proposal breaks the spending record again, paid for by 137 new and increased taxes.  His budget proposal also eliminates the property tax rebate check and decreases STAR exemptions across the board. At the same time, this budget does not address Medicaid fraud and, moreover, by cutting education aid, it will pass along an inevitable burden to local governments.  Not only will this plan cause local property taxes to rise, but it could also cost the state over half a million jobs.  According to former state chief economist Stephen Kagann, every $100 million in new taxes imposed during a recession leads to a loss of 11,400 private sector jobs. With these tax hikes totally $6 billion, this means the approximate loss of 600,000 jobs.

To balance the State Budget and reduce the state's debt, Hawley has long called for cost saving measures, such as agency and department consolidation, such as merging the Office of Real Property Services into the Department of Taxation and Finance, saving New York State taxpayers $18 million annually.  Another $37 million would be saved by merging the Office of Climate Change into the Office of Atmospheric Research at the State University of Albany.

Hawley also has been on the forefront of tackling government waste by calling for state operating cost cuts and continues to propose cost-saving measures such as limiting the amount of vehicles purchased on taxpayer dollars by 50 percent (not including public safety vehicles such as police, fire and emergency services vehicles) to save another estimated $4 million and $25 million, respectively.  Assemblyman Hawley stated, "The bulk of the cost savings would come from finally targeting Medicaid fraud, abuse and waste.  I have long supported a complete state take-over of Medicaid. Not only would this help ensure the program is run more efficiently, but it would eliminate a multi-billion unfunded mandate currently put on our local governments and taxpayers.  Perhaps, most importantly, by forcing the state to take responsibility for the Medicaid program, it will also help make Albany more accountable and cognizant for its spending overall."

The Tax Foundation used information compiled by the United States Census Bureau from 2005 to 2007 in their report which shows that out of all counties in the nation (with 20,000 or more residents) Orleans County residents pay the highest property taxes as a percentage of their home worth at 3.05 percent.  Niagara County came in second at 2.90 percent, followed by Monroe County ranking fifth and Genesee County ranking eighth at 2.84 and 2.69 percent, respectively.  Every county topping the nation's most highly taxed counties came from New York State (rankings 1-20), with the exception of Fort Bend County in Texas, ranking in eleventh place.  The majority of New York State counties on the list came from Western New York, strengthening Hawley's assertion that economic stimulus and a drastic reduction in spending are vital to lowering property taxes.

Yesterday, we ran a post about the push by some members of Batavia's City Council to cut down on the funding for downtown celebrations, such as Summer in the City and Christmas in the City. Councilman Bob Bialkowski explained that they only wanted to limit the amount of funding available to cut down on overtime costs, but that they would not eliminate the celebrations altogether. Bialkowski justifies the push for cuts as a measure to minimize the city's property tax rate. Opponents of the cuts, however, argue that any cut in funding would shift too much of a cost burden onto the Batavia Business Improvement District, sponsors of the events.

What do you think?

Daily News writer Paul Mrozek has a lengthy piece out today on Gov. Paterson's plans to tell parents how to raise their children -- specifically how to control their diets.

He includes all the facts from the governor's perspective, but passes over one lone skeptical voice deep in the article.  There is little focus on the propriety of New York engaging in social engineering, nor the degree to which this plan is going to create new bureaucracies and hence new expenses, whether there is any evidence such a plan will work, nor how the plan will impact businesses and create new costs that will be passed along to all consumers.

The most far-reaching of the proposals is an 18 percent sales tax on sugar-sweetened beverages such as soda. Juices from fruit such as oranges and grapes are excluded from the proposed tax.

In the past 40 years New York residents have increased their consumption of pop from an average of five 12-ounce cans or bottles per week to 11 per week. Research has shown that consumption of non-diet soft drinks is one of the primary factors that increases the risk of obesity in children and adults.

"No question about the link. We have a core fact in front of us," Daines said.

Not so fast. There is a question. A big fat question.

To blame all low-income obesity on soda pop alone is myopic. Low-income diets tend to be heavy in empty carbohydrates of all kinds, not just sugar. Children living in food insecure homes consume less healthy food. One reason there is such an abundance of empty-carb foods can be traced to farm subsidies for corn, but even that connection is a rather simplistic view of the obesity problem among poorer children.

There is also the question of proper exercise.  In too many homes, children are allowed to watch TV or play video games rather than being required to run around outside.

These are largely parental issues, not government issues.

If the government wanted to do something to help, they would restructure aid programs to make it easier to buy healthier food.  Given a choice, most parents would pick more meats, fruits and vegetables. But right now these options are beyond their budgets. 

Driving up the costs of the high-carb foods isn't going to help them afford the good foods.

The article says, "You raise prices. You provide alternatives."  But what are those alternatives. How are they paid for and provided?  If the alternatives are paid for by the tax, how does the state ensure sufficient revenue for those alternatives once consumption of the taxed items goes down?

Will taxed drinks receive some sort of stamp like alcohol and cigarettes?  If so, aren't we just creating yet another environment for potential illegal black market activities?

And one issue about the proposed tax I've not seen discussed anywhere is the impact on business: Who will levy the tax? Will retail outlets be burdened with the the expense of tracking and tallying the tax, which could include the expense of reprogramming cash registers?  And if the tax is imposed at the wholesale level, won't it just get passed along to all consumers of soft drinks and other beverages from those particular wholesalers?

What about vending machines? Will vendors be required to have two prices on drinks in their machines -- one for taxed items, and one for non-taxed? Or will us diet drinkers just pay more? Who pays for the expense of reprogramming machines or replacing machines that aren't capable of handling tiered prices on soft drinks?

Per usual, any time the government starts interfering in private lives and private enterprise, there are as many if not more problems created than solved.

Here's an appropriate and timely video from Reason Magazine.

The Buffalo News this morning reports that New York teachers are increasing pressure on the state Legislature to oppose. Gov. Paterson's property tax cap.

The campaign to stop the cap is intense. NYSUT last week withheld endorsements from 38 state senators who voted for the Paterson tax cap. The Working Families Party mailed out 200,000 fliers in a bid to ensure the Democratic-run Assembly does not take up the cap this week. The party, along with the Alliance for Quality Education, has begun a one-week, $1.5 million TV ad campaign blasting the cap. It has also run radio ads.

High taxes -- and they are outrageously high in New York -- impede economic growth, cost people jobs, discourage businesses to relocate to New York, drive businesses out of New York, and ultimately decrease the amount of money local governments can generate in revenue.

Gov. Patterson's proposal is modest compared to the substantial cuts that should be made.

It's disappointing that the teachers union, at such a critical time, is putting self interest ahead of community interest.

Here's a gloomy story to start of your Saturday with: Don't expect property tax relief soon.

The impression left by the D&C story is that the state legislature is dissecting the issue into particle detail rather than just dealing with the basic issue: Property taxes are too high.

All sides have expressed a desire to do something about property taxes, but the way to get there, like the path to so many goals in Albany, is clouded.

A property tax cap, proposed by a state commission put together by former Gov. Eliot Spitzer, has won the support of Gov. David Paterson. But state lawmakers, including those who represent Monroe County, are not convinced Paterson's proposal is the answer.

Back in the 1970s, when Californians got fed up with the state Legislature's wishy-washy, spineless approach to property tax relief, they passed Jarvis-Gann, better known as Proposition 13. 

While the transition to new ways of funding and operating schools and government hasn't always been easy for California, property taxes are a lot lower and everything still operates just fine.  Maybe there needs to be a voter revolt in New York, cause it's sure sounding like the Legislature wants to sit on its hands.

Here's Steve Hawley's reply:

"I'm not sure we should be focusing exclusively on the school tax," said Assemblyman Stephen Hawley, R-Batavia, who was a member of the Genesee Valley Board of Cooperative Educational Services (BOCES) before he was elected to the Legislature.

Hawley suggested exploring different property tax rates based on income and family situation, not strictly home value, and noted that government spending is the root of the problem.

"A reasonable solution is to stop trying to be all things to all people," he said.

Certainly, reducing waste in government and the size of government is a good place to start, but the idea that the government would A) develop an even more complex tax scheme (different rates based on family size and income?); and, B) start meddling in the structure of New York families doesn't sound very Republican-like.

Maybe Hawley can contact us or leave a comment and try to explain better what he's talking about, because this sound bite sounds more scary than helpful.

Another quick reminder.....School Budget Votes and School Board Members Voting is tomorrow in the City of Batavia.   Board Seats held by Wayne Guenther and Steve Hyde are up for Re-Election, there is no challengers.  Steve and Wayne have both done the office of Board of Education Member proud.  I hope the community comes out to support them. 

We also have the budget, which cuts the current tax rate by 2% or more and allows for the expansion of curriculum and the continuance of our award winning technology programs.  Batavia City School District is getting top grades for being one of the BEST SCHOOL DISTRICTS in Western New York.  All of our buildings (BHS, BMS & 3 Elementaries) recieved passing grades of distinction from New York State.  In short we are doing a fine job with the education process while realigning and reducing the tax burden on local residents and businesses. 

Also on the ballot is the approval of the 5+ Million Technology Budget that will add to the Security of all buildings as well as update current technology to include wireless and other outlets.  This will allow more students on computers at the same time and result in a better adaption of technology in the classroom.  Now here is the glitch....this has to pass by New York State Law by 60%.  I  have no clue why Small City School Building Projects need the 60% threshold while others only need 1 vote more in favor...but the fact is, we do.

With all that being said....please come out and support the Batavia City School's Budget, its Board of Education Members and the Technology Project.  It is the least we can do for our kids.  We appreciate your support.

As a Cold War veteran myself, the County's Legislature's proposal to cut property taxes by 10 percent for those who served in the military from 1945 to 1991 is applause worthy.

If approved, the tax break would be effective March 1, 2009, for county tax bills. The property must be a private residence of the veteran or the unmarried spouse of a deceased veteran.

Those who served in the three wars during that period — Korea, Vietnam and Desert Storm — are currently eligible for property tax exemptions.

Applications are processed by the county’s Veteran Service Office.

For the Cold War veterans the percentage would apply to residential property values up to $60,000. Those with homes assessed at more would get the same exemption but only to a cap level of $60,000.

I served in the USAF from 1980 to 1994, and I always felt like I did my part to protect the country from the Red Menace, so it's nice to see the Cold War veterans of Genesee get some recognition.

As astonishingly high as taxes are in New York, you would think attending a community college would be free -- as it was in California for many decades, until Prop. 13 (a cap on property taxes passed in 1978) eroded state revenue.

Nope.

In fact, Genesee students will get to pay another $50 per-semester, making total semester costs $1,700.

Ouch.

The increase, part of a $30.8 million GCC budget for 2008-09, was adopted during the monthly meeting of the board of trustees Monday.

The budget proposes a $50,000 increase in support from Genesee County, sponsor of the college. Last year, the college was granted a $100,000 increase from county funds, raising taxpayers’ support to $1.8 million, about 6 percent of the total college budget. Officials have maintained that the county’s share is the second lowest among county-sponsored two-year colleges in the state.

The increase must yet be approved by the County Legislature.  The rubber stamps are probably already inked.

City Councilman Sam Barone came by Main Street Coffee this morning for a chat. He was one minute early. Punctual. I like that. Over a couple mugs of black coffee, while white collars settled into their cubicle chairs and farmers into their plow seats, Sam and I talked about city life in a small town, what gets a man to run for office and what it's like to watch your kids leave home for greener pastures.

Sam grew up in Batavia, not far from Austin Park, he tells me. He taught science for a living out in Byron and Bergen, until he retired. But that doesn't mean he's any less interested in the science of life — animate or otherwise. He'll always have a soft spot for Batavia's parks, even if they paved over the wading pool to put in a spray park. He knows the trees of those parks intimately, some of them more than a century old, he says. Worth preserving. Worth appreciating.

Sam took a seat on the City Council only about five months ago. Why did he do it? Why would anyone do it? "Basically," he says, "the taxes."

"Last year, they proposed a large increase in taxes. So I started attending meetings to get information on how the city operates and realized we had some very serious deficits."

Still, Sam wanted to hang in the back seat. So when the Democrats asked him to run on their ticket back in July, Sam said: No. Of course, we know he gave in and got elected. He and his fellow Council members battled their way through the budget — laborious, he says — and reduced the tax increase to 8 percent, compared with the 23 percent hike from the year before, says Barone.

That laborious struggle to balance the budget may soon seem like a cakewalk as the city gets ready to roll up its sleeves and take a long hard look at the question that nobody seems to want to mention out loud: consolidation.

Albany recently approved a $93,000 grant for the town and city of Batavia to look at consolidating services and "potentially merging the two municipalities into a single entity," according to the Albany Project.

Sam admits that he's a bit wary of consolidation talk himself. He doesn't want the city to lose its cultural character by merging with the town. But at the same time, he doesn't see any reason the county can't help pay for ambulance service or the town can't share its snowplows with the city.

"Some areas should be consolidated," he says. "Some shouldn't. I want Batavia to have an identity."

He finds that identity in the city's parks, its green open spaces, its ball field and its homes. We talked at length about Batavia's homes — the facades along Main Street were the first thing I fell in love with when I took a virgin drive through Batavia earlier this year.

Sam spoke of the Brisbane Mansion, once a home, then turned City Hall, that now houses the police station. He told of the Briggs home down Walnut Street. I drove down that way to find it, but there were so many fetching abodes that I couldn't say for sure which one would take the prize. I snapped a photo of this yellow one that seemed a dollhouse erected for normal size people.

There was a very nice old home right at the bend where South Main turns into Walnut that also had plenty of fancy dressings and age spots to recommend itself as another contender for most interesting old big house in that ward of the city.

Heritage homes and ancient trees aside, the first thing on Sam's mind was bringing more jobs into Batavia, likely the first thing on most folks' mind these days around here. Sam has three boys. All three left their Batavia home for somewhere they could get a job. His eldest may not have gone far — to Rochester to work for a communications manufacturer — but the other two couldn't have gone farther, without leaving the country.

One boy took off for Portland, Oregon. Sam calls him "the free spirit" — he left to play music out on the west coast. The other left for Florida after he lost his machine supply job up here. Both are doing well for themselves, but they're doing it far from home.

"Part of it is the taxes," says Sam. "Part of it is the type of work you're looking for. People are finding the work elsewhere."

That might just be the biggest challenge for a City Councilman in these parts: get the work to come thiswhere. Best of luck with that, Sam.