Cooperstown Crier - Your Source for Hometown News - Cooperstown, Baseball Hall of Fame

Opinion

January 19, 2012

Our Opinion: Confused much?

As if figuring out one’s tax bill isn’t mind boggling enough. Now, with a two percent limit on property tax increases, there will be more brains flustered. It is not a simple calculation at all. In fact, the tax cap will affect each school district’s levy in various ways. So don’t think you will be able to take your bill from last year and just increase it by two percent. The process uses a much more complex formula eight steps, as a matter of fact.

The formula is used to figure out what is called a tax levy limit.  For example, the formula allows for certain expenses to beexempt from the cap, therefore allowing the total tax levy increase to be greater than the “perceived” cap. There are also other factors such as assessments and equalization rates that will still impact tax rates.

Will voters still get to vote on a budget?

The answer is yes. They will still be able to cast their votes on the third Tuesday in May. However, according to a presentation given at Cooperstown Central School on Tuesday night by State Aid and Financial Planning Service Senior Specialist Patricia Service, school boards can present a budget that requires a levy that exceeds the cap, but will need a higher voter approval. Instead of the majority vote (50 plus one) needed in the past, the threshold for voter approval will be 60 percent. If the board presents a budget that does not require a levy that exceeds the cap, Service said, it only needs a “simple majority.”

A property tax report card is still required and will now include the district tax limit and a proposed tax levy before exemptions. The budget notice should now include the district tax levy limit, a proposed tax levy before exemptions and a budget statement.

School boards do have options. They can propose a budget requiring a total tax levy at or below the calculated maximum allowable tax levy prescribed by law (required a simple majority 50 plus one voter approval) or propose a budget requiring a total tax levy above the maximum allowable by law (requires 60 percent voter approval and a statement on the ballot indicating the required tax levy before exemptions exceeds the tax levy limit).

If the budget is not approved by the public, the district may resubmit the original or revised budget plan to voters on the third Tuesday in June or adopt a contingency budget that levies a tax no greater than that of the prior year. If the resubmitted/revised budget proposal is not approved, the board must adopt a budget that levies a tax no greater than that of the prior year and it would be subject to contingent budget requirements.

Districts will not be allowed to increase the tax levy to the extent necessary to fund items of expenditure excluded from the tax cap. Expenditures are no longer subject to the overall contingent budget spending cap.

If a clerical or technical error is made and the levy exceeds the maximum allowed by law, the excess amount collected should be placed in reserve. Excess amount and any interest earned will be used to offset the tax levy in the following year.

Confusion will abound and clarifications are still being sought. This is a pilot year of this law, so it should be interesting.

Text Only
Our Opinion

Your Opinion

New Today!
Disqus Comments