1. PRESENTED TO THE BOARD OF EDUCATION NOVEMBER 4, 2014 Alternative Veterans Tax Exemption Summary

2. Real Property Tax Law § 458-a As of December 2013 legislation was passed allowing school districts to join other municipalities in offering a tax reduction in the form of a Veterans Tax Exemption  Individuals must apply to be eligible  Reductions similar to the STAR exemption, however is not funding by the state  3 Levels: Wartime, Combat Zone and Disability Unlike Municipalities, the December 2013 decision is silent on the issue of revocability, indications are that legislation is forthcoming to modify the current bill to address this issue

3. Impact on Rye City Residents Eligible veterans who apply could receive the following maximum tax reduction:  Wartime: $594  Combat Zone: $990  Disability: $1980 Presently, there are 252 City homeowners within the RCSD who are receiving an alternative veteran's exemption.  Equates to $394,000 in assessed valuation  Tax impact to RCSD is $221,248  Estimated: Tax Rate Increase: $1.7795/per $1,000 of assessed value Annual Increase ($28,500 assessed value): $51.00

4. Board Resolutions Resolution 1: Basic Veterans Exemption  Basic exemption includes three levels of exemption:  Wartime  Combat  Disabled Resolution 2: Modify Exemption Amount  High-appreciation municipalities have the option to increase the exemption to maximum level  To maintain consistency with the current levels that the City of Rye offers, the City is the district sole source provider of assessment information that makes tax collection possible, accuracy is crucial. Resolution 3: Extend the Exemption to Cooperative Corporation  Extends exemption beyond real property ownership to Co-Op owners  To maintain consistency with the current levels that the City of Rye offers, the City is the district sole source provider of assessment information that makes tax collection possible, accuracy is crucial.