 Board
of Education adopts final tax rates for 2009-10
school year
Final
tax rates for the 2009-10 school year adopted by
the Board of Education in August resulted in lower-than-projected tax rate increases
for property owners in the towns of Niskayuna
and Glenville. In fact, in three of the four
towns within the district, the final tax rate is
lower than the projected
2.45 percent approved by voters last spring.
Specifically, school tax rates in the district
are increasing by 2.41 percent in Niskayuna, by
2.07 percent in Glenville, by 4.25 percent in Colonie—and decreasing by 4.86 percent in
Clifton Park. (Link
to tax rate information by town.)
Equalization rates
are to blame for a shift in the allocation of
the district’s total tax levy between the towns
of Colonie and Clifton Park. Each summer, the
New York State Office of Real Property Services
(ORPS) sets equalization rates for each town to
compensate for the different assessment
practices of each town, and help ensure that the
tax levy is fairly distributed among all
communities within a taxing jurisdiction.
In
Colonie, a drop in the equalization rate from 67
to 65.75 percent increased the tax rate,
indicating the market value of these homes was
increasing compared to their assessed value,
shifting more of the tax levy to these homes as
they were considered to be under assessed.
Whereas, an increase in the equalization rate in
Clifton Park from 54 to 58 percent created the
opposite effect—it reduced the tax rate,
indicating the market values for these homes
were moving closer to the assessed values
thereby shifting more of the tax levy away from
these homeowners and to the other towns.
School
tax rates are calculated based on final
assessment figures provided by each assessor in
the four towns that comprise the district. Final
equalization rates and STAR exemptions are set
by ORPS, a state agency, in July.
State loophole reduces
STAR exemptions in Niskayuna and Glenville
Despite
the lower-than-projected tax rate increase,
district residents in the towns of Niskayuna and
Glenville are receiving higher-than-anticipated
tax bills because of the state Legislature's
decision to reduce the value of state STAR
exemptions by up to 11 percent in 2009.
As a
result of the recent revaluations that took
place in Niskayuna and Glenville, residents were
afforded higher than average STAR exemptions to
ease some of the irregularities that occurred in
establishing new assessed values.
Now that
the revaluations have been completed, the higher
STAR exemptions are being reduced, thanks to a
cost-cutting maneuver granted by the state
legislature that allows a decrease in the STAR
exemption by 11 percent per year. This decrease
shifts the burden of tax from the state to the
taxpayers.
In
Niskayuna, the
Basic STAR exemption will decrease to
$33,240 (from $37,350 in 2008-09) and the
Enhanced STAR exemption will drop to $62,940
(from $70,720 in 2008-09).
Due to
this decline in value of the state exemption,
for example, homeowners in the town of Niskayuna
who receive the Basic STAR exemption saw the
state pay $596.94 of their school tax bill in
2008, but only $544.03 in 2009. The difference
of $52.91 is reflected in the 2009 tax bill. A
difference of $100.13 is reflected on tax bills
for property owners who receive the Enhanced
STAR exemption.
In Glenville, the
Basic STAR exemption will fall to $29,730
(from $33,410 in 2008-09) and the
Enhanced STAR exemption will decline to
$56,280 (from $63,240 in 2008-09).
Similarly, due to the decline in value of the
state exemption, for example, homeowners in the
town of Glenville who receive the Basic STAR
exemption saw the state pay $628.21 of their
school tax bill in 2008, but only $570.56 in
2009. As a result, property owners will pay the
difference of $57.65 in tax. Those with Enhanced
STAR will pay an additional $109.01.
Homeowners without the STAR exemption will see
their tax bill increase 2.41 percent. For
example, in Niskayuna, the school tax bill in
2009-2010 before STAR would be $4,091.70
compared to last year’s school tax prior to STAR
of $3,995.55, which equates to an increase of
$96.15 or 2.41 percent. However, homeowners with
Basic and Enhanced STAR exemptions will see more
of an increase in their total tax bill because
the decline in the exemption shifts an
additional $52.91 from the state to the
taxpayer, making the total tax increase $149.06.
Niskayuna Tax
Calculations with Basic STAR
| |
Adjusted STAR
2009-2010 |
No
STAR
2009-2010 |
Adjusted Actual
2008-2009 |
|
Assessed Value |
$250,000 |
$250,000 |
$250,000 |
| Tax
Rate |
$16.3668/$1,000 |
$16.3668/$1,000 |
$15.9822/$1,000 |
| Tax
before STAR |
$4,091.70 |
$4,091.70 |
$3,995.55 |
| Basic
STAR |
$33,240 |
$37,350 |
$37,350 |
| STAR
Savings |
$544.03 |
$611.30 |
$596.94 |
| Net
Tax |
$3,547.67 |
$3,480.40 |
$3,398.61 |
The change in
tax before STAR would be ($4,091.70 - $3,995.55
= $96.15/$3,995.55 = 2.41%)
However, the decrease in the basic STAR
exemption from $37,350 to $33,240 equates to a
loss of $4,110 in exemption. So the tax bill
goes up by 2.41% plus an additional $52.91 due
to the loss of STAR exemption value. ($596.94 -
$544.03 = $52.91)
The
middle column depicts how the 2009-2010 tax
bills would have appeared for a $250,000 home if
there had been no adjustment made to the basic
STAR exemption from 2008-2009.
Niskayuna
Tax Calculations with Enhanced STAR
| |
Adjusted STAR
2009-2010 |
No
STAR
2009-2010 |
Adjusted Actual
2008-2009 |
|
Assessed Value |
$250,000
|
$250,000 |
$250,000 |
| Tax
Rate |
$16.3668/$1,000 |
$16.3668/$1,000 |
$15.9822/$1,000 |
| Tax
before STAR |
$4,091.70 |
$4,091.70 |
$3,995.55 |
|
Enhanced STAR |
$62,940 |
$70,720 |
$70,720 |
| STAR
Savings |
$1,030.13 |
$1,157.46 |
$1,130.26 |
| Net
Tax |
$3,061.57 |
$2,934.24 |
$2,865.29 |
The tax
increase before STAR is 2.41 percent, however
the decrease in the enhanced STAR exemption adds
an additional $100.13 ($1,130.26 - $1,030.13 =
$100.13) to the tax bill.
The middle column depicts how the 2009-2010 tax
bills would have appeared for a $250,000 home if
there had been no adjustment made to the
enhanced STAR exemption from 2008-2009.
STAR charts
for Glenville residents:
Glenville Tax
Calculations with Basic STAR
| |
Adjusted STAR
2009-2010 |
No
STAR
2009-2010 |
Adjusted Actual
2008-2009 |
|
Assessed Value |
$212,500 |
$212,500 |
$212,500 |
| Tax
Rate |
$19.1913/$1,000 |
$19.1913/$1,000 |
$18.8030/$1,000 |
| Tax
before STAR |
$4,078.15 |
$4,078.15 |
$3,995.64 |
| Basic
STAR |
$29,730 |
$33,410 |
$33,410 |
| STAR
Savings |
$570.56 |
$641.18 |
$628.21 |
| Net
Tax |
$3,507.59 |
$3,436.97 |
$3,367.43 |
Tax increase =
2.07% plus $57.65 due decrease in STAR
Glenville
Tax Calculations with Enhanced STAR
| |
Adjusted STAR
2009-2010 |
No
STAR
2009-2010 |
Adjusted Actual
2008-2009 |
|
Assessed Value |
$212,500 |
$212,500 |
$212,500 |
| Tax
Rate |
$19.1913/$1,000 |
$19.1913/$1,000 |
$18.8030/$1,000 |
| Tax
before STAR |
$4,078.15 |
$4,078.15 |
$3,995.64 |
|
Enhanced STAR |
$56,280 |
$63,240 |
$63,240 |
| STAR
Savings |
$1,080.09 |
$1,213.66 |
$1,189.10 |
| Net
Tax |
$2,998.06 |
$2,864.49 |
$2,806.54 |
Tax increase =
2.07% plus $109.01 due decrease in STAR
(Home assessed at $212,500/85% equalization rate
= Fair market value of $250,000)
Final Tax
Rates by Town
|
Town |
Final
Increase |
Final Tax
Rate* |
| |
|
|
|
Niskayuna |
|
|
|
Homestead** |
2.41% |
$16.37 |
|
Non-Homestead |
2.57% |
$21.38 |
| |
|
|
|
Glenville |
|
|
|
Homestead |
2.07% |
$19.19 |
|
Non-Homestead |
1.81% |
$24.96 |
| |
|
|
|
Colonie |
|
|
|
Homestead |
4.25% |
$25.29 |
|
Non-Homestead |
2.88% |
$35.10 |
| |
|
|
|
Clifton Park |
|
|
|
Homestead |
(4.86%) |
$28.27 |
|
Non-Homestead |
(5.21%) |
$36.58 |
*per $1,000 of
assessed valuation
**Homestead
refers to residential property. Non-homestead
property is business property.
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