Public hearing alternative veterans exemption 02 24 14

HALF HOLLOW HILLS SCHOOL DISTRICT of Huntington and Babylon

Public Hearing on the

Alternative Veterans Exemption February 24, 2014

RPTL 458‐a Changes • In December 2013 the Governor amended Real Property Tax Law (RPTL) 458‐a to enable eligible veterans the ability to receive a partial exemption from school taxes levied on their property.

• Previously, other local governments (counties, cities, towns and villages) were authorized to offer the partial property tax exemptions to veterans, however school districts were not.

Public Hearing on the Alternative Veterans Exemption – February 24, 2014

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The Basic Exemption • Basic Exemption for Qualifying Residential Real Property:  A School District may provide for an exemption of up to 15% of the assessed value of any qualifying residential real property if:  Such property is owned by a veteran, spouse of a veteran, or the un‐remarried surviving spouse of a veteran and  Such property is used as their primary residence

 Referred to as the “wartime” category of the Alternative Veterans Exemption  Default dollar value cap to the basic exemption amount is $12,000 Public Hearing on the Alternative Veterans Exemption – February 24, 2014

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The Enhanced Exemptions • Enhanced exemptions are available as follows: 1. Veteran who served in a combat zone  Additional tax exemption equal to 10% of the residence’s total assessed value (“wartime” + “combat zone” = total exemption of 25%)  Default dollar value cap to exemption amount is $8,000  Cumulative default dollar value cap is $20,000 when adding this enhancement to the basic “wartime” exemption ($12,000 + $8,000)

2. Veteran who received a service‐connected disability rating from the Veterans’ Administration or the Department of Defense  Additional tax exemption equal to one‐half of the disability rating multiplied by the residence’s total assessed value  Maximum additional exemption for this disability rating of 50%  Default dollar value cap to exemption amount is $40,000 Public Hearing on the Alternative Veterans Exemption – February 24, 2014

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Q & A Q Are school districts required to offer the tax exemption?

Q

If a homeowner is receiving an eligible funds exemption for another taxing purpose does that preclude the homeowner from receiving this exemption for school taxes?

Answer: NO • School districts are not required to offer the tax exemption.

• School districts can opt to postpone discussion/ implementation of the exemption until a future date.

• School districts must, however, hold a public hearing prior to adopting the exemptions if they choose to consider that option.

Answer: NO • If a school district opts into RPTL 458‐a, a veteran may receive this exemption for school purposes even if the veteran is receiving the eligible funds exemption for another purpose.

• Veteran will need to submit an application to receive this exemption however.

Public Hearing on the Alternative Veterans Exemption – February 24, 2014

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Q & A Q

Is there an income limit on veterans who receive the exemption?

Q Can a school district

choose to offer the eligible funds or cold war vets exemptions?

Q

If a homeowner is receiving the exemption for another taxing purpose (i.e. county/town) do they need to resubmit an application?

Answer: NO • There is no income limit on veterans who are eligible to receive the exemption.

Answer: NO • The new law only gives school districts the option of offering the alternative veterans exemption.

Answer: NO • If a school district opts into RPTL 458‐a, a homeowner who is already receiving the alternative veterans exemption for another purpose does not need to submit a new application to receive the exemption for school purposes.

Public Hearing on the Alternative Veterans Exemption – February 24, 2014

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Q & A QCan a school district

Answer: YES

• The limits that the school district selects will apply to all the select limits that are homeowners in the school district for school tax purposes. different from the • The limits can be higher OR lower than the default levels set limits set for town by statute…as little as half or as much as 4.5 times the purposes? statutory value.

Q

Answer: YES and NO Is there a date by which a school district needs to opt‐in to RPTL 458‐a?

• For the exemption to be applicable to the 2014‐15 tax year (December 2014 to November 2015), the deadline for a school district to elect into this exemption is the taxable status date of March 1st (March 3rd this year due to March 1st falling on a weekend).

• School districts can delay their decision if there is no urgency to make the exemption applicable to the 2014‐15 tax year.

Public Hearing on the Alternative Veterans Exemption – February 24, 2014

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Who Does This Impact?

VETERANS VETERANS Will be provided with a partial tax break from the school district portion of their property taxes.

HALF HOLLOW HILLS

OTHER HOMEOWNERS

$0 financial impact since the total tax levy required by the District will still be collected.

However, District will answer many resident calls at tax bill time.

Will cover the cost for the exemption provided to the veterans…the tax burden is simply shifted from one resident to another.

Assuming the Alternative Veterans Exemption is granted…

Public Hearing on the Alternative Veterans Exemption – February 24, 2014

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Estimated Impact to Other Homeowners Estimated yearly impact: 0.09% increase in school tax bill* Impact to a Town of Huntington homeowner*

Assumes default dollar value cap to exemption is granted

Impact to a Town of Babylon homeowner* $5 per year

$9 per year Any reduction to an individual’s tax bill due to an exemption is made up by others in that taxing jurisdiction. What this does is simply shift the costs onto other local taxpayers (the other homeowners not receiving the exemption).

Public Hearing on the Alternative Veterans Exemption – February 24, 2014

* Estimated for a homeowner living in what the respective Town indicates is the average assessed value of a home in that Town. Refer to the following page for variables to these estimated figures.

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Impact to Other Homeowners The TRUE impact Assumes no Assumes no change to impact to STAR to other assessed savings for homeowners not values…but homeowners… there will be but could be eligible for this exemption cannot Assumes no Assumes no Assumes an change to TOH change to average be precisely and TOB “ratio” equalization assessed home of tax base…but quantified due to rates…but there in TOB @ there may be may be $4,088 the following Assumes Assumes Assumes an factors: other veterans impact analyses provided by Towns are accurate

average assessed home in TOH @ $5,500

Public Hearing on the Alternative Veterans Exemption – February 24, 2014

don’t apply for this new exemption… but they will

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Gold Star Parents exemption • Alternative Veterans Exemption awarded to parents of a child who died in the line of duty to the US Armed Services during a time of war.

• Towns are unable to identify how many homeowners would be eligible for this exemption, so the financial impact to other homeowners is unknown.

Public Hearing on the Alternative Veterans Exemption – February 24, 2014

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Procedural Items If a Board of Education chooses to…

…then it must:

Enact Basic Veterans Exemption

• Hold Public Hearing (today) • Adopt a Resolution with default exemption cap levels

Then, if a Board of Education chooses to…

…then it must:

Change default exemption cap levels

Public Hearing on the Alternative Veterans Exemption – February 24, 2014

• Hold 2nd Public Hearing • Pass a separate resolution authorizing local exemption cap levels

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Procedural Items If a Board of Education chooses to… …then it must: •

Enact the Gold Star Parents Exemption

•

Hold Public Hearing (today) Adopt a separate Resolution authorizing the Gold Star Parents exemption after the base exemption has been adopted

Public Hearing on the Alternative Veterans Exemption – February 24, 2014

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Alternative Veterans Exemption

Public Hearing on the Alternative Veterans Exemption – February 24, 2014

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