UPDATED News from Albany for Wantagh Taxpayers

[Chris_Wendt]

Governor Cuomo signed into law a repeal of the MTA Commuter Tax on school districts.

If memory serves, this should net Wantagh about $90,000 cost avoidance, which could go right to the bottom line...reducing the next tax levy dollar-for-dollar.

But wait! There's more! The MTA Tax on school districts ends December 31st of THIS YEAR! That means there is a full six months of MTA tax payments that had been budgeted that will not have to be paid! That should reap bottom line savings for the school districts of about $45,000 which would go to fund balance and then be appropriated to further reduce next year's tax levy.

I think it is important for taxpayers to set their expectations for the district to use this tax relief from Albany as TAX RELIEF for Wantagh Tax Payers.

Excited!

Chris Wendt

[Chris_Wendt]

Update & Correction!

I learned this evening from Dana DiCapua, the Assistant Superintendent for Business for Wantagh Schools that the MTA Tax is revenue neutral to schools. NY State has been reimbursing school districts for all the money they paid out in MTA Payroll Tax.

Although we will save on the outlay of MTA Payroll Tax payments, we will also lose the corresponding revenue stream from the reimbursements.

This event will have no impact on our taxes, or the 2% Tax Levy Cap.

In the immortal words of the Emily Littela, "Never mind!"

www.hulu.com/watch/2364/saturday-night-live-weekend-update-emily-litella-on-violins-on-tv

Chris Wendt

[Chris_Wendt]

Here's yet another correction to this report.

Newsday revealed today that, although the MTA Tax had been rebated to school districts, BOCES did NOT receive a rebate or refund of their MTA Taxes paid. School districts, and therefore our tax payers, paid for the BOCES MTA taxes.

BOCES will no longer pay the MTA Tax under the new law going into effect January 1st, which is at least a small piece of good news.

This gives rise to the following observation:

BOCES does not levy property taxes, and is therefore NOT subject to the 2% Property Tax Cap. But, BOCES' costs are underwritten by their component school districts, and thus impinge on our property taxes, AND upon Wantagh's ability to meet the 2% Property Tax Cap.

Shouldn't the BOCES budgets be subject to the same 2% cap to which Wantagh's tax levy is subject?

I want to apologize for having had to make two corrections to this report. That would not have been necessary if the Dirty Big Secret about the state refunding MTA taxes to school districts was not so much of a secret, or, had the media done a better job of reporting the implications of the repeal of the MTA Payroll Tax.

Regards

Chris Wendt