http://www.dailygazette.comROTTERDAM
Timing led to tax rate confusion
Assumption by assessment firm cited in discrepancies
BY MICHAEL LAMENDOLA Gazette Reporter
Reach Gazette reporter Michael Lamendola at 395-3114 or lamend@dailygazette.com
Bad timing and conflicting information appear to lie at the center of discrepancies between real and projected tax rates in the Mohonasen School District, which created an uproar among Rotterdam residents who saw dramatic increases in their tax bills this year, officials said.
Residents blame the town’s recently completed reassessment for the tax hikes and point an accusing finger at GAR Associates, which did the work. GAR mailed out assessment disclosure notices prior to March 1 that estimated Mohonasen school district residents would pay about $8.89 per $1,000 of assessed property value. They were actually billed $14.64 per $1,000. Rotterdam paid GAR, a private appraisal fi rm, $752,000 to conduct the revaluation.
Geoffrey Glock, spokesman for the state Office of Real Property Services, said GAR mailed out notices based on the assumption Mohonasen would adopt a homestead rate for taxpayers. Instead, the school board decided in March against the option, which would have set different tax rates for residential and commercial properties.
“So that’s why there was a difference on the assessment disclosure notices and the tax bills,” Glock said. “GAR made the assumption that Mohonasen would use the homestead option, and that’s not what happened. It had to send out its disclosure notices at least 60 days prior to tentative roll date, which is March 1.”
Mohonasen school Superintendent Kathleen Spring said district officials were not involved in the preparation of GAR’s disclosure notices. She said Mohonasen mailed its own notices to district residents and held public hearings prior to the May school budget vote, notices that estimated the tax rate would be approximately $14.30 per $1,000 assessed value.
Voters approved a $1.5 million spending increase in Mohonasen’s operating budget, which boosted the tax levy of about 4.25 percent.
“I don’t think people calculated what $14.30 per $1,000 would mean versus the other statement, which was $8 per $1,000,” Spring said.
Conversely, GAR’s assessment disclosure notices for the Schalmont Central School District accurately reflected tax rates district residents would pay, said Superintendent Valerie Kelsey.
GAR based its estimates on the assumption Schalmont would adopt the homestead rate, which it did. The district adopted tax rates of $17.22 per $1,000 for residential properties and $20.05 per $1,000 for commercial properties.
Schalmont had to adopt a homestead rate prior to May 1, when the final assessment roll came out.
Mohonasen officials had hoped to help district residents by seeking permission from the county Legislature to offer installments payments. District residents must now pay one lump sum by Oct. 1.
Spring said she believed the county Legislature had to enact the legislation first, and she sent the county a letter dated last Friday asking for help.
LAW CHANGED
However, she learned Wednesday only the school district has that power under state law.
County Attorney Chris Gardner said his review of state legislation showed a school board has to adopt an pay-installment option by a two-thirds vote prior to the levy of taxes. He said it is too late for Mohonasen to vote on the plan for this year’s taxes, but the board can do it for the future.
Spring said she plans to discuss the issue with her board. Meanwhile, she has written to state offi - cials seeking their assistance. “The law is not an option anymore and there is not much we can do. I have to hope, I have to try asking legislators for help. I feel badly for the residents,” she said.
Rotterdam Supervisor Steven Tommasone supported Spring’s request with an accompanying letter, and county Legislator Joseph Suhrada, R-Rotterdam, issued a news release, both last Friday, asking the county to call a special meeting on the issue.
Suhrada on Wednesday changed his stance when he learned the county could not enact paymentinstallment legislation for school districts but could do so for towns. He said the county Legislature should allow towns to offer installment payments for their upcoming town taxes.
Gardner said the Legislature would consider the legislation if all the towns made the request. He said once the legislation is passed, all the towns have to adopt installment plans. He said payment of taxes in this manner could seriously affect a town’s finances. Schenectady County towns currently receive their taxes in a lump sum and they budget accordingly, he said.
“Apparently Mr. Suhrada and Mr. Tommasone did not do their homework. It’s always good to do the legal research first and the press release later,” Gardner said.