Alternative Veterans Tax Exemption Niagara Wheatfield Central School District

Alternative Veterans Tax Exemption The Alternative Veterans Tax Exemption was signed into law by Governor Cuomo on December 18, 2013. The purpose of this legislation was to authorize school districts to grant tax exemptions to veterans pursuant to Section 458-a of the Real Property Tax Law. The Alternative Veterans Tax Exemption will have no impact on the total amount of school taxes collected.

Alternative Veterans Tax Exemption A meeting was held at the Niagara Wheatfield Administration building on September 30, 2014 with various Veterans organizations and discussion entailed on the Veteran’s Tax Exemption. The following Veterans participated: THANK YOU!!! Richard Baker Commander Sanborn Post 969 American Legion Arthur Cline Lewiston Post 1083 American Legion Charles Kegler First Vice Commander Niagara County Ron Krul Commander American Legion Wheatfield Post Earl Schmidt Niagara County Veterans Agency Dennis Smilinich National Revenue Enhancement American Legion, Vice Chairman Children and Youth NYS American Legion Also participating were Lynn Fusco, Superintendent, Steve Sabo, NW School Board President, Chris Peters NW School Board Vice-President, and myself.

Alternative Veterans Tax Exemption “The nature of a veteran’s military service determines the applicable percentage exemption (per RPTL 458-a): Basic Wartime Exemption – for an individual on active duty during a period of war = 15% of the assessed value of his or her qualifying property not to exceed a maximum of $12,000 or the product of $12,000 and the latest EQ rate, whichever is less. Combat Zone – for an individual who served during wartime in a combat zone = to 10% the assessed value subject to a ceiling of $8,000 or the product of $8,000 and the latest EQ rate. Disability – for individuals sustaining service related injuries = ½ of his or her disability rating, with a cap of $40,000 or $40,000 multiplied by the latest EQ rate.” Information provided by Erie 1 BOCES Finance and Legislation Update 1/15/14

Alternative Veterans Tax Exemption Example: An individual who served during a period of war, in a combat zone, and has 100% service-connected disability rating would be eligible for an exemption of 75% of the property’s value, up to $60,000. 15% Basic Wartime 10% Combat Zone 50% Disability _ 75% Total Exemption

Alternative Veterans Tax Exemption “A school district can, at its discretion, decrease the aforementioned caps from $12,000/$8,000/$40,000 to $6,000/$4,000/$20,000 or $9,000/$6,000/$30,000 A district may also choose to increase the base ceilings at rates specified in statute. (See N.Y. RPTL 458-a[2][d][ii]). As the standard caps (i.e., $12,000/$8,000/$40,000) are low enough to be implicated where property values exceed $80,000, electing to use the lower values (i.e., $6,000/$4,000/$20,000 or $9,000/$6,000/$30,000) could limit losses while still offering some relief to veterans.” Information provided by Erie 1 BOCES Finance and Legislation Update 1/15/14

Alternative Veterans Tax Exemption “If a school district wants to implement the veterans exemption – A district must hold a public hearing on the matter and, subsequently, pass a resolution authorizing the same. Should a district wish to reduce or increase the ceilings on the exemptions, it must hold a separate hearing and pass a separate resolution.” “The veterans exemption provided in 458-a is wholly discretionary. Should a city, town, village or county opt not to offer the exemption, 458-a(4) requires that the municipality pass a local law providing as much. It is not clear whether school districts are subject to this requirement: while the new language of subparagraph (2)(d)(i) suggests that paragraph (4) would also apply to school districts, the language of paragraph (4) limits the requirement to cities, towns, villages, and counties.” Information provided by Erie 1 BOCES Finance and Legislation Update 1/15/14

Alternative Veterans Tax Exemption An initial public hearing for consideration of adopting a Resolution for the Alternative Veterans Property Tax Exemption was held on April 2, 2014. The Board of Education must pass a resolution prior to March 1, 2015 to authorize the Veteran’s Tax Exemption. Because the Niagara Wheatfield Board of Education intends to implement the Alternative Veteran’s Tax Exemption a public hearing was held on April 2, 2014.

Alternative Veterans Tax Exemption Eligibility Requirements are outlined in the Assessor’s Manual, Volume 4, Exemption Administration. Essentially, the property must be owned by a “qualified owner”, namely : a veteran, the spouse of a veteran or the unremarried surviving spouse of a veteran. There is additional guidance for the assessors when determining eligibility. Currently there are approximately 1,552 Properties Affected in the Niagara Wheatfield Central School District.

Alternative Veterans Tax Exemption If an exemption level is chosen other than the default levels of $12,000/$8,000/$40,000 an additional public hearing must be held. There can be only one choice of exemption levels for the school district.

Alternative Veterans Tax Exemption Total assessed value of property $100,000 Alternative veterans exemption (war time) – fixed dollar amount exempt, subject tot state maximum (supersedes 15% benefit level) $12,000 Senior citizens exemption - % exempt 50% Taxable value after deduction for veterans exemption = $100,000 - $12,000 $88,000 Taxable value after additional deduction for senior citizens exemption = $88,000 – ($88,000 x 50%) $44,000 Total exempt value = $12,000 + $44,000 $56,000 The Alternative Veterans Tax Exemption will reduce the amount of STAR returned to the school, however, the total levy is still collected in full for the school….but the balance is collected from taxpayers. Taken from an email from John Shoemaker to Patricia Hartigan where he states he copied and pasted a passage from the Assessor’s Exemption Manual on the calculations of multiple exemptions. Note: In calculating exemptions for school tax purposes, apply the STAR exemption after all other applicable exemptions have been applied to the property’s assessed value. Information provided by Niagara County Real Property

Alternative Veterans Tax Exemption STATUS OF MUNICIPAL OPTIONS IN REGARDS TO VETERANS EXEMPTIONS   MAXIMUM 458(A) ALTERNATIVE VETS EXEMPTION WARTIME VETERAN COMBAT ZONE VETERAN DISABLED VETERAN MUNICIPALITY 2013 FINAL EQ. RATE 15% MAXIMUM EXEMPT 25% 50% CAMBRIA 100.00 18,000 30,000 60,000 HARTLAND MIDDLEPORT (VLG) 9,000 15,000 LEWISTON 80.00 12,000 9,600 20,000 16,000 40,000 32,000 LEWISTON (VLG) LOCKPORT (TOWN) NEWFANE 92.00 16,560 27,600 55,200 NIAGARA 60.00 7,200 1,200 24,000 PENDLETON 96.00 17,280 28,800 57,600 PORTER 93.00 16,740 27,900 55,800 YOUNGSTOWN (VLG) ROYALTON 11,040 18,400 36,800 SOMERSET BARKER (VLG) - WHEATFIELD 70.00 8,400 14,000 28,000 WILSON WILSON (VLG) CITY OF LOCKPORT CITY OF NIAGARA FALLS CITY OF N. TONAWANDA 97.00 17,460 29,100 58,200 NIAGARA COUNTY* *The maximum exemption for county purposes shall also be equalized by the appropriate equalization rate for each town and city NOTE: Final Equalization rate used for exemption purposes may differ from that used for tax extensions. Information provided by Niagara County Real Property

Alternative Veterans Tax Exemption Using the $12,000/$8,000/$40,000 exemptions:

Alternative Veterans Tax Exemption Using the $6,000/$4,000/$20,000 exemptions:

Alternative Veterans Tax Exemption Using the $9,000/$6,000/$30,000 exemptions:

Alternative Veterans Tax Exemption Rate Increase Comparison Based on a $150,000 Assessed Value $6,000/$4,000/ $20,000 $9,000/$6,000/$30,000 $12,000/$8,000/$40,000 Homestead: Niagara $43.14 $61.90 $78.17 Wheatfield $22.17 $32.67 $42.80 Lewiston $42.28 $61.89 $80.82 Cambria $18.84 $28.07 $37.47 Non-Homestead: $51.12 $73.82 $95.15 $40.94 $60.88 $79.75 $34.02 $50.31 $66.27 $26.09 $39.09 $51.82 Amounts are annual estimates based on a $150,000 assessed value.