Below is a question posed to Mr. Tommasone followed by his respond:
QUESTON: Mr. Tommasone, > The question below was asked by a member of the Rotterdamny.Info >message board. Could you clearify this for us or possibly tell us where we >could find the information? And also if I could have your permission to >post your respond to the message board. > Respectfully > Jo-Ann Schrom > Administrator > http://www.Rotterdamny.info > > > > The residents in the Mohon School District are not very happy with the >school's decision not to invoke the Homestead Act. I can't wait to see what >if anything the town does now that the residents are up in arms about their >tax bills when the town said that the tax increases would'nt be as high as >they are. The tax rate is where the problem lies, where is all the extra >money that was levied by the taxes going to be used?
RESPOND: Jo-Ann...Various thoughts....
The Paolino Administration hired GAR Associates for $752,000 to revalue
property in Rotterdam and as part of the contract, as necessary under NYS Law and the Office of Real Property Services policies and under their guidance, to provide the estimates to residents and businesses of the impact of their taxes on each taxing level: school, county, town. I questioned my estimate as did thousands of residents who went to the Town Assessor's Office and at the numerous meetings GAR Associates held. The residents were consistently told that they were estimates and to trust these estimates. I questioned mine immediately as I anticipated my taxes to at best remain flat but really expected them to increase. Now the difference from my estimate of a few hundred dollars lower became approx. six hundred more! I have
spoken to dozens of residents in the last few days who, like your writer are upset that their tax estimate was completely inaccurate. Thousands of our taxpayers relied on these GAR-provided estimates and probably decided not to challenge their assessments because the tax impact was lower than they had anticipated.
Regarding the comments in the Gazette that school tax bills and the tax
amount to be paid by each property owner is based solely on the revaluation is not accurate. The taxes that businesses and residents are paying are a function of their property value AND the school budgets, the tax levy and tax increases, just as it is for every taxing level. The schools had a tax levy increase of approx 4 percent each. Their combined tax levies total approx. $60 million.
As you know, I inherited the tax reassessment from the last town administration and enacted the Homestead Tax Exemption to help all residents. We also were successful in having the schools implement the full Senior Income, Veteran’s and Disabled Tax Exemptions allowed by state law, as the town has done for several years now.
Once we passed the Homestead Tax Exemption, Schalmont’s Board passed the provision, however Mohonasen did not. So it is more than just about the reassessment. It’s about spending and the tax levies. It’s about the choices past school boards and past town boards have made.
The homeowners of Rotterdam were reassessed when home values were at an
all-time high and many were sold on the promise by former Supervisor Paolino and other prominent Democrats that their taxes would only rise by "$1.75".
I've worked hard to improve our community’s image through the improvements to our parks, the hundred roads we paved just these past two years, ensuring public safety, EMS and our quality of life.
I strongly, vocally and repeatedly opposed the revaluation, because as predicted, while some homeowners experienced some savings, the overwhelming number of homeowners saw their school property taxes increase significantly. Even with the fully-phased in exemptions, the tax shift was as I had expected.
How do we fix this for the future of Rotterdam? Our administration’s focus has been on planning Rotterdam’s future growth, particularly in Rotterdam Junction, Hamburg Street, 5 Corners, and each of the I-90 exits. Also, we are focused on continuing improvements to our water and sewer infrastructure to accommodate the planned growth which will reduce sprawl and lead to the appropriate economic development offsetting and reducing the residential tax burden for all of us.
How do we hold those accountable for this debacle? I vividly recall conversations with our Assessor and GAR representatives regarding the tax impact statements accuracy and they assured us of their accuracy despite being “estimates”. Our administration is consulting with attorneys as to the responsibility of GAR Associates and others involved in the revaluation process. Particularly who did what and what systems were utilized or what analysis was employed in arriving at the figures they provided to the taxpayers in disclosure notices earlier this year.
The 2008 budget I am submitting to the town board will include a tax decrease that has nothing to do with the revaluation. In other words, our spending controls and cost cutting, coupled with the economic development that we have tended to in the last two years, has had a profoundly positive effect on our town finances.
FYI...I have asked our Town Assessor, John Macejka, to invite GAR and ORPS to our Town Board meeting Wednesday, September 12, 2007 at 7:00 p.m. at
Rotterdam Town Hall knowing that residents will have questions that, quite frankly, I cannot answer because the responsibility for the calculations rest solely with them.
FYI...I have asked our Town Assessor, John Macejka, to invite GAR and ORPS to our Town Board meeting Wednesday, September 12, 2007 at 7:00 p.m. at
Rotterdam Town Hall knowing that residents will have questions that, quite frankly, I cannot answer because the responsibility for the calculations rest solely with them.
Well, there we have it folks!!! Anyone with questions regarding their reval, here is our chance to speak up and ask away!!!
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
...and this is what happens when you wait multiple generations to do a reassessment. Reassessments, in principle, are always a great idea...it by and large prevents taxpayers from paying too much or too little of their fair share. The longer you wait to do a reassessment, the more inequitible it becomes. With a reassessment, and all other variables being equal, the amount that taxes go up for some, must go down the same amount for others. Munis and school distrcits, however, tend to use this as an opportunity to "sneak in" increased spending, exacerbating the situation even more for some (myself included - my school taxes went up over $800). GAR is correct in that they must put an estimate on the impact notice, but they mentioned their impact assumed that each school district would pass the homestead act. Why they assumed this is beyond me...I am guessing they did it to make the impact look "better" and to avoid further complaints early on. As far as the Homestead Act is concerned (and as someone with knowledge of this) its simply not a good idea. While homeowners would like an additional tax break (myself included), we are much better off controlling what our towns and schools spend. Ever hear of the snake that eats its own tail? It can survive in the short term, but it will eventually consume itself. This is the Homestead Act. Taxes are a big reason why businesses close shop and/or move somewhere else. If we place an even greater burden on businesses, eventually there will be nobody to pay those taxes except for us homeowners. Fiscal responsibility and equitible tax rolls goes a lot further than gimmicky programs such as Homestead Act or STAR.
Possum, I must sincerely disagree. Part of your argument,
Quoted Text
As far as the Homestead Act is concerned (and as someone with knowledge of this) its simply not a good idea. Ever hear of the snake that eats its own tail? It can survive in the short term, but it will eventually consume itself. This is the Homestead Act. Taxes are a big reason why businesses close shop and/or move somewhere else.
This whole argument falls under the idea that corporations pay taxes. No, they don't. Yes, they get a tax bill, but does the CEO open up his personal checkbook to pay these taxes? No, the money to pay them is received by an addition to the charges that he gives to his customer.
If "The Widget Stand" can produce and be able to sell "widgets" for $5 a piece, producing for $4.50 with $.50 profit figured in, but they receive a bill from the tax collector for $.45 per widget that they have to pay to the locality, do they walk away with only $.05 in their pocket for each widget? NO!
Instead, they say...Well, my production cost ($4.50) plus my tax($.45) is $4.95. Now, I want to have some profit, so I'll figure $.50, so now, the price of my widget is $5.45.
So, in reality, it's not the company / corporation that pays the taxes, it's the consumer!
Possum, I must sincerely disagree. Part of your argument,
This whole argument falls under the idea that corporations pay taxes. No, they don't. Yes, they get a tax bill, but does the CEO open up his personal checkbook to pay these taxes? No, the money to pay them is received by an addition to the charges that he gives to his customer.
If "The Widget Stand" can produce and be able to sell "widgets" for $5 a piece, producing for $4.50 with $.50 profit figured in, but they receive a bill from the tax collector for $.45 per widget that they have to pay to the locality, do they walk away with only $.05 in their pocket for each widget? NO!
Instead, they say...Well, my production cost ($4.50) plus my tax($.45) is $4.95. Now, I want to have some profit, so I'll figure $.50, so now, the price of my widget is $5.45.
So, in reality, it's not the company / corporation that pays the taxes, it's the consumer!
Show Me The Money!!
I don't think we necessarily disagree too much. Your thoughts are well-thought and essentially correct. I will grant you that in the long term, as a whole, corporations (especially larger) will pass on any additional costs to the consumer...but I think this happens in a more macro sense, across the specific industry. Looking at Schenectady County, in a world where Walmarts, Home Depots, and big chain supermarkets dot the landscape, the situation is a little more complex for small to medium sized companies. Already operating on a tight margin, many of these local businesses are forced to absorb the increased property taxes much like homeowners such as ourselves do. As a quick, make believe, highly unscientific example, "Joe's Hardware" doesn't have the luxury of raising his prices across the board when there's a Home Depot or Lowe's across town (who may be able to strong-arm its suppliers into lowering their prices for them). Besides, larger companies frequently do challenge their own assessments in court rather than just "re-tag" their prices a few cents higher. Since that money must be made up somewhere, it can have disasterous effects for homeowners (see the Mirant Corp. and Rockland County as just one of many examples). Locally, GE, Walmart, Lowe's, and Target are just some of many larger corporations who have challenged local property taxes. New York is also big on offering property tax breaks to these companies at the expense of homeowners. Whether or not these breaks are beneficial to a community is a seperate argument...the point is corporations and businesses are not immune to property tax impacts. Again, since tax levies are already set by the time businesses and homeowners get to protest their assessment, that money must come from somewhere. When an individual gets their assessment lowered by a small amount, that small amount is divided among the remaining tax payers. If a corporation happens to get a huge (usually court-ordered) decrease in their assessment, that "huge decrease" is made up by the remaining tax payers. Equal thought must be put into how much we spend as to how we divide the resulting cost. Anyway, please excuse the run-on sentences and random thoughts, but my allergies are terrible today and its tough to formulative a more cohesive thought
Homestead Act does nothing more than blow smoke up my wazooo,,,,along with everyone else's.....we as a STATE have gotten too expensive for ourselves.......why? SHOW ME THE $$ TRAIL.....
This whole argument falls under the idea that corporations pay taxes. No, they don't. Yes, they get a tax bill, but does the CEO open up his personal checkbook to pay these taxes? No
Corporate taxes come out of the 'corporate account' so to say. It comes out of the business. And it is quite a bundle of money. The CEO is also taxed and yes he/she does open their personal checkbook to pay. And that also is quite a bundle. We, as the 'little people' should be greatful, to an extent, that there are corporations and CEO's who contribute to our tax base. Without them we would be dead in the water.
I agree that there needs to be a balance. But no matter how you look at it, WE end up paying in the end. Either we pay through OUR taxes or we pay at the register when we purchase from businesses that are paying more taxes. They will just raise prices to cover the cost. If businesses must obsorb the increase in taxes, such as the Homestead Act, they can just raise their prices to cover it. WE THE PEOPLE don't have that option. So for that I favor the Homestead Act.
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
I dont care how much $$ someone else has as long as it was on the up and up and their sweat...are there jerks who will try to prevent you from doing things, sure. as for being on the up and up---just because there is no law against something doesn't mean it's always the correct(right) thing to do/not to do....see my signature
If I am worth $10,000 and the tax is 5% that is $500.00 If I am worth $100,000 and the tax is 5% that is $5000.00
no reward, no loop holes, no evening out the 'playing field' of which taxes are NOT to be played,,,it looks like alot to each person no matter the worth.... there's so much smoke and mirrors that we dont know what the bottom or top is anymore....other than by $$...
Why is milk $4.00 gallon, bread $2.00 loaf, and why do we have credit cards????? SHOW ME THE $$ TRAIL---leaders.....
...you are a product of your environment, your environment is a product of your priorities, your priorities are a product of you......
The replacement of morality and conscience with law produces a deadly paradox.
STOP BEING GOOD DEMOCRATS---STOP BEING GOOD REPUBLICANS--START BEING GOOD AMERICANS
Senders that idea was brought up years ago and some of our politicians were against it, remember the flat tax, it's a good idea and everyone would pay their fair share.
The flat tax is way to easy. There would be too many public sector layoffs. And the flat tax would not work in our present economic system. It would have to be totally rehauled.
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
Just look at the money that would be saved, we could eliminate the IRS and all it's blood sucking ways, cut public sector benefits and salaries when employees were laid off, and be able to cut budget costs too. Welcome to the real world, this happens in the private sector every day and nobody but the people involved even cares.
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