Govt Leaders, Environmentalists Praise Elimination of Tax Cap

 

Local government officials, state lawmakers and environmentalists say they’re pleased that a plan to freeze state tax payments to towns and school districts with large amounts of state-owned land has been dropped from the state budget expected to be adopted this week.

The budget legislation omits a provision proposed by the Paterson administration that would have capped state property tax payments in the Adirondacks, Catskills and other parts of the state.

The move was expected to save the state $8 million next year but would have had a chilling effect on any further buying of wilderness or open space, said Neil Woodworth, executive director of the Adirondack Mountain Club. Municipalities that count on those tax receipts would have lost their incentive to sign off on new acquisitions within their boundaries, he said.

“We would never be able to buy another significant chunk of land in New York state,” Woodworth said.

Brian Towers, President of the Adirondack Association of Towns and Villages, said his group had worked hard with legislators and the environmental groups to fight the proposal.  “We’re very pleased the Legislature has pulled this out of the budget process,” he said.

“I think what this does, if we’re successful at keeping the tax cap out of it in future budget years, is going to allow many of our communities to continue to survive.  Under another scenario, particularly those towns that have a great deal of state property holdings in their community, probably over the next ten year period of time would have literally gone out of business.  So those communities are at least going to be able to sustain themselves.”

Towers is also the Supervisor of the Town of Wells, where the state owns just over 90 percent of the land and pays 60 percent of the property taxes.

State Senator Betty Little, a Republican, said she was pleased the tax cap was removed by the Legislature’s Democratic leadership.  But, she noted, they’re also taking away STAR rebate checks.   “For people in our district that’s a way of helping to pay for your school taxes,” she said. “Everyone who got a STAR rebate, and they’re geared for the middle class, will have an increase in their property taxes this year, in there school taxes.”

Little said the budget was very disappointing and was crafted in secret.  “It was three men in a room and all three men were from New York City,” she said.  “There are so many things that are just hurting Upstate New York because of the way the budget was done.”

Assemblywoman Teresa Sayward said the budget spends too much at a time when New Yorkers are struggling to keep their homes and their jobs.  “This budget is disgrace,” she said. “The budget from top to bottom is just something we can’t sustain over time.  They increased school spending by $1.1 billion and decreased healthcare spending by $2.3 billion.  The governor has a $1 billion slush fund he can use for whatever he wants to use.  There’s absolutely no rhyme or reason as to how this budget went through and its really going to hurt the people back home.”

Lawmakers will begin voting today on the $131 billion budget.

           -Chris Knight, 3-31-09 

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