School tax Issues

[tiredoftaxes]

Hurricane Sandy caused a major decrease in the total assessed property value fomula for the school district. Assuming the district still takes in the same anount of tax revenues, this will mean that homes that were not affected by hurricane Sandy will be burdened with a greater tax while homes damaged by Sandy will have a smaller tax.

Is the BOE addressing this major potential problem?

[lilly]

Good question. Also, for those who grieve taxes, the difference in levy is picked up by those who don't? So again, good question.

[Chris_Wendt]

The BoE has no way and no authority to address either of those operations of the assessment continuum. They do have an obligation to operate within what is called the "Two-percent Tax Cap", which is neither two percent, nor a "tax" "cap". Nevertheless, that is the sole controlling issue for any Board of Education. Of course, included in the "Tax" "Cap" is an onerous provision that, in the event of a twice-defeated budget, the resulting tax levy increase must be "zero".

But even in a scenario with a zero tax levy increase, the effects of Sandy and of tax grievance settlements will have a significant impact on the tax bills of many households in Wantagh.

Chris Wendt

[tiredoftaxes]

My other cause of concern is the timing of when the county is planning to push back the responsibility for paying the property tax grievance refund amounts to the school districts??? If I'm not mistaken, these Sandy grievances will kick in on the 2014/2015 school tax bills. If this becomes the school district's responsibility, it can be one big headache for everyone...

[tiredoftaxes]

Also, can the BOE notify federal/state/local government leaders of these issues affecting the decrease in taxable property base problems caused by Sandy. Maybe some of the $50 billion federal relief money can be designated via a grant to the south shore school districts that were affected by Sandy, so that the rest of the unaffected community does not incur an over-tax burden. Something probably needs to be done soon, before all the money is parceled out.

[tiredoftaxes]

To put in in a dramatic perspective, one has to wonder how the Long Beach School District is going to collect its usual revenue stream, considering the magnitude of destruction that occurred in Long Beach..I'm sure most in Long Beach will be grieving their property value assessment. Let's assume each property owner paid 10k in school taxes pre-Sandy...Assuming all the homes were destroyed and there nothing but bare land to tax, then everyone still on equal footing. If school district has revenues budgeted the same as pre-sandy, then each property tax owner would still have a $10K school tax bill, even though there is no building on property.

Ironic and unfair, ain't it???

[tiredoftaxes]

Would be nice if leaders of south shore school districts weighed in on this before it's too late...

Mangano, Bellone huddle with Cuomo on Sandy aid plan

www.newsday.com/long-island/mangano-bellone-huddle-with-cuomo-on-sandy-aid-plan-1.4531255

[Chris_Wendt]

Tired of Taxes raised some vital points:

"...the timing of...the county...push back (of) the responsibility for paying the property tax grievance refund amounts to the school districts? ... (When) this becomes the school district's responsibility, it (will) be one big headache for everyone..."

This will certainly generate a dollar-for-dollar increase to subsequent year's tax levies to make-up for the diversion of revenue from education to tax grievance refunds. After two years, this will become "invisible" due to its having become baked-in to the budget so to speak. Oh, you will continue to pay for it every year, but not as an "increase" from the prior year(s).

"Would be nice if leaders of south shore school districts weighed in on this before it's too late..."

Nice? Chalk this up to the abject failure of BOCES (or SED) to serve as any kind of effective representative or advocate for our school district. Or, you could consider this part of the cost of maintaining "local" "control" over our (54) individual school districts.

All food for thought.

Chris Wendt

[tiredoftaxes]

What also concerns me, is what will happen if the lost assessed property value never comes back..Such as if the state buys out the destroyed homes and turns the land into a nonassessable park..Will the state be making up the loss of tax stream via PILOTS or is everyone else going to have to make up the difference???

Cuomo seeks to buy storm-wrecked homes, preserve coastal land
www.newsday.com/classifieds/real-estate/cuomo-seeks-to-buy-storm-wrecked-homes-preserve-coastal-land-1.4558452

I'm beginning to believe the old owner of the OBI was correct in his saying: "Get out of New York before it is too late!!"

[Chris_Wendt]

Good questions.

The State will not be paying PILOTS. The state does not pay taxes, the state collects taxes.

Now, think about where the Sandy-affected homes are situated, and then think about what the Cuomo buy-out plan could mean to enrollment in the schools situated in those affected areas.

As to the OBI mantra...too late!

Chris Wendt