FOR RELEASE: Monday, August 22, 2011
The Board of Education tonight adopted school tax rates that are 1.86% higher than the 2010-11 school year, in large part because of historic reductions in state aid.
At the time of the vote on the proposed $47.080 million 2011-12 budget in May, the district projected a tax rate increase of 1.86%. The budget approved by the community in May was $248,245 less than the previous school year's budget.
For the typical homeowner in Scotia and Glenville with a $160,000 assessment, that means a tax bill of $3,262.40 before savings from the state's STAR school tax reduction program.
The Board of Education adopted these tax rates:
Because of changes in the state's equalization rates, the impact of school taxes is felt differently in the three communities that make up the Scotia-Glenville school district. About 99.8 percent of the district is located in the village of Scotia or town of Glenville.
Glenville: $20.39 per $1,000 assessed value – 1.86%
2010-11 Glenville rate: $20.01 per $1,000
Charlton: $26.50 per $1,000 assessed value – 1.86%
2010-11 Charlton rate: $26.02 per $1,000
▪ Amsterdam: $185.51 per $1,000 assessed value – 0.17% decrease 2010-11 Amsterdam rate: 185.83 per $1,000
"We are grateful that our community supported the 2011-12 spending plan that will continue to advance education opportunities for the 2,700 Scotia-Glenville students who walk through our doors every day," said Superintendent Susan M. Swartz.
The rates will be effective with school tax bills due this September.
Slight additional savings through state's STAR program
The Basic STAR ($27,300 in 2011-12/$26,460 in 2010-11) and Enhanced STAR ($54,690 in 2011-12/$51,090 in 2010-11) discounts for Scotia and Glenville increased from last year and will result in a slight additional savings for S-G property owners.
A change to the state law this year limited STAR savings to a maximum 2 percent increase each year and also attached a $500,000 family income maximum to the Basic STAR program. There had been no income cap in the past.
The result is that the STAR program in Scotia-Glenville will save $540 for Basic STAR property owners and $1,043 for Enhanced STAR property owners. Last year, those STAR savings were $530 and $1,022, respectively.
The STAR reduction is taken off the tax bill before it is computed and sent to homeowners.
A word about the state's property tax cap
It should also be noted that the property tax cap approved by the state Legislature calls for a maximum 2% or rate-of-inflation increase in the tax LEVY, whichever is lower.
For the 2011-12 budget, the tax RATE (the amount calculated on the individual tax bill) increased by 1.86% while the tax LEVY (the total amount of taxes collected by the school district) increased by 1.1%.
Changes to Glenville's assessments
Despite a $6 million decrease in the tax rolls from the estimated provided by the town of Glenville assessor in May, the school tax increase was maintained at 1.86% by using an additional $121,000 from the school district's fund balance/rainy day fund.
Businesses and homeowners have until the end of May every year to challenge their property assessments. Courts then must decide on challenges in many cases. Reduced assessments mean property owners pay less in taxes to the school district, town and village.
Since the school budget was adopted, these major assessment reductions occurred:
▪ The new Mohawk Honda dealership on Route 50 was granted a payment-in-lieu-of-taxes (PILOT) agreement, meaning they will pay an increasing portion of their full tax bill each year over the next several years.
▪ Walmart's assessment was reduced.
▪ The McDonald's restaurant on Mohawk Avenue in Scotia was demolished, removing its assessment from the tax rolls.
▪ A long-standing settlement with Verizon was resolved, resulting in the loss of assessment from the tax base.
Property assessments in Scotia and Glenville total $1.244 billion. The school district expects to collect $24,429,903 in taxes during the 2011-12 school year.
For further information, contact Susan
Swartz, Superintendent, at
382-1215 or Robert Hanlon, Communications, at 386-4343.