South Colonie school officials are saying a change in the tax collecting system will be more equitable for residents in the long run.
As the Town of Colonie is changing from a two-tier to a one-tier tax system, the South Colonie Central School District is mandated to follow suit.
The North Colonie Central School District made the move voluntarily last year.
Anjelleeque Martinez, business manager and treasurer of the South Colonie Central School District said the tax rate for non-homestead, or business properties, has gone down in recent years and has gotten closer to the homestead, or homeowner, rates.
At the board’s Tuesday, Dec. 1 meeting, she said taxable assessed value in the town has gone up $2 million, though.
Martinez said there is only an approximate $0.70 difference between the two property types, as the homestead value is at $23.75 per $1,000 of assessed value and non-homestead is at $24.49. She predicted that next year, non-homestead property will be assessed lower than homestead.
Beverly Miller, assistant superintendent for management services at South Colonie, said ten years ago, the town decided on a two-tier system to make taxing more equitable.
For the last couple of years their tax rate has declined, she said of the non-homestead properties. `We’re trying to bring equity.`
From 2007-2008 to 2008-2009, the non-homestead tax rate dropped 0.66 percent. In 2009-2010, non-homestead properties paid 4.39 percent less than the prior year.
Next year another decline is expected, she said.
The move too a one-tier system will not affect how much the district collects, but will allow the distribution to be more `equitable.`
`It’s not more money in our pocket, it’s all from the same pie,` Miller said.
The town made the move to a one-tier system in order to save residents from a tax increase over the next few years, according to the assessor’s office.
Colonie Town Assessor Ron Monfils explained at a Thursday, Nov. 5 meeting, that without a one-tier system for the town, which would set a constant rate for both residential and commercial property owners at $2.80 per thousand of assessed value, property taxes would increase in 2010 by between 4 and 5 percent, according to reports of the meeting.
Monfils said state mandates will require discrepancies between homestead and non-homestead homes to be remedied, and do so by charging up to 5 percent in property taxes to make up the difference.
In order to avoid this, Monfils said, a one-tier system eliminates the need for the state to step in.
He said in general, residential property rises in value faster than commercial. That reality caused the homestead and non-homestead rates to move closer together over the years, and is likely to continue even as the town, and school district switch to a one-tier system.
Monfils said a potential solution is a town-wide revaluation, but the town is not planning one at this time, as they can be pricey.
`We’ll do it when it’s time,` Monfils said.
He said when it will be cost-efficient to spend the money on a revaluation, the town will consider one.
`The idea is not to collect more taxes,` he said. `It’s to be more equitable.`
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