Town officials have asked the Bethlehem Central School District to consider taking part in the new conservation easement tax exemptions for qualified landowners.
School board members heard a presentation on the exemption by Town Supervisor John Clarkson and Planning Director Rob Leslie on Wednesday, Dec. 3. Although the town has already passed the measure into law, many residents are waiting to see if the school district and county will sign on before applying.
“We believe this is a great, new tool in preserving open space,” said Clarkson. “We, the town, are asking you to opt in because obviously it will be much more effective if your taxes are weighed in, as well for the exemption.”
Guilderland and Ravena-Coeymans-Selkirk Central School Districts have also been approached, along with Albany County. They have yet to make a decision.
The town passed a “bare bones” version of the law in August, which includes all of the state’s mandates. Residents can then apply for the exemptions, with a Conservation Easement Board approving specific recommendations and requirements for each individual property before the application is passed on to the town board.
The exemption would mainly be based on how long landowners committed their land to remain open space.
The shortest amount of time, which is mandated by the state, would be 15 years and comes with a 50 percent tax break. No development can occur on the land during the easement’s timeframe, and the restrictions stay with the deed, not the owner of the property. Those who apply for a perpetual easement would see a 90 percent tax break.
If landowners break the exemption and develop a portion of their land, they must pay back five times the amount of tax saving for them the last year, plus 6 percent interest for up to five years.
Some school board members were concerned landowners would be getting a tax deal if they opted to develop their land in the middle of the easement. Clarkson said developing on the land and paying the fine also does not mean a landowner gets out of the easement, since it remains with the deed. The only way to break away from the easement would be with approval from the Conservation Easement Board.
Within the Bethlehem Central School District, 119 properties would be eligible for the program. These are properties with more than five acres of vacant land.
Clarkson said that by opting in to the program, the school district will not receive less in tax revenue, but taxes would be redistributed among residents.
“I wouldn’t want anyone to think, ‘Good heavens, our school district might get less revenue.’ It’s simply about who pays it,” said Clarkson.
According to district Chief Business and Financial Officer Judi Kehoe, if every eligible property applied for a conservation easement at the minimum 15 years, the average resident would see a tax increase on $7 per $250,000. At the large end, if every eligible landowner applied for the perpetual easement at a 90 percent tax reduction, the average homeowner would see their school taxes increase by $13.
Clarkson said the town is expecting only about a quarter of the eligible landowners to apply for the program, and it would be rare for someone to apply for the perpetual exemption since those landowners are more likely to just donate their land to a charitable group like the Mohawk-Hudson Land Conservancy.
Leslie said just two other towns in the state now have conservation easements programs. One is Elma in western New York, with three or four properties receiving exemptions. The other is Orchard Park with 75 to 100 properties.
Superintendent Tom Douglas asked why the town didn’t reach out to the district before the law was passed, so board members had more time to consider the program and voice their concerns. Clarkson said he felt getting the easement passed by the state “was a long shot” and was “pleasantly surprised” when it passed so quickly.”
Some board members were concerned that passing the easements would place more strife on families who are already struggling financially. Clarkson said many of the town’s farm families are also struggling, and this was being done as another option to help, since many saw increases in their assessments after the recent reassessment project.
“There are many farm families who have had land for a tremendously long time, who perhaps weren’t planning to sell to developers immediately, and for them, we, the town board, recognize there were difficulties made by the reassessment,” said Clarkson, reiterating the reassessment also helped a majority of residents in town reduce their taxes.
Board members said they were apprehensive, since the results of a resident survey the town provided on preserving open space were nearly 10 years old. They asked to see the results for the full survey and any updated information the town could provide.
A public hearing on the Conservation Easement is set for Wednesday, Dec. 17, at 7 p.m. at the Bethlehem High School.
Veterans exemption
Also on Dec. 17, the school district will hold a public hearing to determine if it should participate in the Alternative Veterans Tax Exemption.
The exemption started in 1984 and originally was only for municipality taxes. However, the law was amended last year to include school districts. Kehoe said this would also impact the Bethlehem Public Library, if the district were to opt in.
Veterans who were honorably discharged, served active duty during wartime, and those who qualify under alternatives to “periods of war” or received an Expeditionary Medal could participate. Reservists usually cannot, though some family members of veterans may be eligible.
Like with the conservation easement exemption, the district would still receive the same amount in revenue but the taxes would be redistributed among residents. The exemption is limited to the primary residence at a maximum of $240,000.
Those who served during wartime could receive a 15 percent exemption; those who served in a combat zone could receive up to a 25 percent exemption, and those with a service-connected disability could receive up to a 50 percent exemption. Equalization rates are applied and this is before the STAR exemptions, so this could reduce the district’s aid.
Between Bethlehem and New Scotland, 1,087 households have veterans exemptions through their towns within the schools district. If maximum benefits were granted for all eligible veterans, school and library taxes would increase by $85 for an average $250,000 home.
A public hearing on the Alternative Veterans Exemption is set for Wednesday, Dec. 17, at 6:30 p.m. at Bethlehem High School.
