1. KT Tobin
Associate Director, Benjamin Center for Public Policy Initiatives
Orange County Citizen’s Foundation Open Space Forum
November 13, 2018

10. Key facts about property tax exemptions not well understood:
Tax exemptions are pervasive and most exemptions are a result of state policy
They are increasing in number for a variety of goals
Most exemption reduce taxes for private citizensSTAR is not a tax exemption program
IDA-related exemptions are on the increase, in particular in our region
Most fully exempt property is government owned
The state government often compensates localities for exemptions on undeveloped state-owned properties within their borders, but not in accord with a systematic policy
The value of wholly exempt privately-owned land was 15 percent of all exempt value statewide
The region has a relatively high concentration of privately owned, fully exempt property

12. Recommended governmental actions:
Revise the tax cap formula to remove disincentives for municipalities that have gained voter approval to bond for open-space protection
Administer and report on the STAR program separately from actual property tax exemption programs
Amend state law to make the impact of exemptions more visible and understandable to citizens
Require annual reporting of newly adopted tax exemptions and their impact by the state comptroller
Adopt and implement a consistent, systematic policy regarding payments made to localities to relieve their burden of both undeveloped and developed exempt properties
Take responsibility at the state level for local effects of state policy

13. Link to full report:
KT Tobin