Dam Concerned Citizens backs tax relief

1/18/2012

By Patsy Nicosia

Dam Concerned Citizens has begun lobbying in favor of a law that would allow municipalities and others to provide tax relief to owners of properties devastated by storms Hurricane and Lee.
But they're fighting an uphill battle-in more ways than one.
The deadline for taxing entities-including counties, towns, villages, and schools, right down to fire, water, and sewer districts and libraries-to adopt the New York State Hurricane Irene and Tropical Storm Lee Assessment Relief Act is Monday.
And not everyone is convinced it's a good idea.
"It sounds like a good idea, but where's the money going to come from?" asked Schoharie County Attorney Mike West.
"It's really just another unfunded mandate from the state that makes the state look good and leaves everyone else to work out the details."
Supervisors had expected to get the specifics of the legislation from Real Property Tax Director Marjorie Troidl at a special meeting last Thursday.
That meeting was cancelled because of a lack of quorum; now the first they'll hear of it is Friday, the same day they'd have to adopt it to get in under the wire.
DCC President Howard Bartholomew said adopting the Assessment Relief Act doesn't commit anyone to offer it.
It can also be tailored, he said, to a community's needs and pocketbook.
"Where possible, we think it's a good idea," he said, "even if it only ends up being 10 cents on a dollar. Let's face it: People aren't going to be paying taxes on a lot of these properties anyway."
According to the law, properties that lost more than 50 percent of their value would be eligible for the relief.
Owners would have to apply in writing.
Assessors wouldn't have to determine exactly how much value the property lost, but instead calculate a "range."
Ms. Troidl said the law has a lot of holes-not the least of which is that the state has left offices like hers with a lot of unanswered questions.
"The paperwork alone would be a nightmare," she said, since eligible tax bills would all have to be recalculated and reissued.
"And assessors in these towns are already up to their eyeballs."
Ms. Troidl also raised the question of what would happen to someone who lost a home in, say, a fire, who wouldn't benefit from the law.
"How is that fair?" she asked. "We're frustrated and we want to help, but no one is touching this because no one can afford it."
Mrs. Troidl pointed out that dropping just one portion of a tax bill-whether it's county, town, or school-"wouldn't be a large amount. We already know that the 2012 assessments are going to reflect the tremendous losses. This just starts it a year earlier."
All valid points, agrees Mr. Bartholomew.
That's why DCC has also come up with a list of possible funding sources to help pay for the relief.
On that list:
• An outright gift from New York City's Department of Environmental Protection.
• Reassessment of the Gilboa Dam based on current improvements; DEP has said it expects to spend at least $350 million in structural upgrades.
DCC believes this option alone could make up the difference in lost assessments in Gilboa and Conesville and possibly even Blenheim.
• Possible contributions from the New York Power Authority.
• Securing a short-term loan to cover an individual municipality's lost tax revenue.
• Flexibility in tax collection, including the option of paying over time with no penalties.
"What we're suggesting is that taxing entities adopt this now and work out the details later," Mr. Bartholomew said.
"It's not something to rush into, we agree. But if we miss the Monday deadline, it'll be too late."