Tompkins Weekly

Local leaders help residents prepare for taxes



 

 

About a month ago, a friend emailed to say that she and her husband were considering building a house in Lansing, but they’d heard that taxes here were high and likely to get higher with the closing of the power plant.
So, I looked it up and asked our local officials.

This year, a Tompkins County taxpayer living in the town of Lansing and the Lansing Central School District will pay property taxes of $6.32 to the county, $1.54 to the town and $0.93 to the fire department per $1,000 of assessed property value. Likewise, they will send $20.88 to the schools and $0.21 to the Lansing Community Library.

Altogether, that’s a tax rate of $29.88 per $1,000 of assessed value, a bill of $7,470 for the owner of a $250,000 property.

That places Lansing 10th of the 25 municipality/school district combinations compared by the Tompkins County Department of Assessment. Lansing’s municipal tax rate ranks 22nd, and the school tax rate ranks sixth among those 25.

(The highest tax rate belongs to the village of Groton followed by the village of Dryden; the lowest rates belong to those living in the towns of Lansing or Ulysses and the Ithaca School District. See tompkinscountyny.gov/assessment/ratevtaxes.)

Tompkins County as a whole compares well with its statewide and local peers. For 2017, the county’s overall rate of $32.30 puts it 29th out of 57 counties. Among our neighbors: Cayuga County was at $30.90; Cortland at $41.40; Tioga at $35.70; Chemung at $33.90; Schuyler at $27.50; and Seneca at $29.80. Nearby Broome County’s rate was $42.00. (See tax.ny.gov/research/property/reports/fvtaxrates/overall_county_13.htm.)

As for the impact of the power plant’s closing, local officials say that a decade’s warning enabled them to tighten belts and seek new revenues to reduce its impact on taxpayers while maintaining the same level of services.

Lansing Central Schools Superintendent Chris Pettograsso noted that the schools faced two shortfalls when she became the principal of the elementary school in 2007.

“There was the Gap Elimination Adjustments in state funding for schools, where they withheld $600,000 to $800,000 per year until 2013 when they started adding it back,” she said.

At the same time, the value of the plant declined from $130 million between 2008 and 2009 to $20 million last year, she said.

“That made a significant impact on tax revenue,” she said. “We looked at every single line item to make sure it was something we needed. We looked at grants and state funding and other resources.”

The bigger things over those 10 years was to put money into reserves and make sure it was an appropriate amount, she said.

“Now, we are advocating with the state to support us because of the fluctuations in the plant’s value,” she said. “New York state has a grant that can do this, but there are many stipulations.”

Pettograsso said now that the plant must close, taxes have to adjust.

“It must have supplied a certain percentage of our tax revenues, and we meet that,” she said. “We need to find the value of the plant as a closed property and we are now waiting on that.”

In this time, Lansing’s schools have been repeatedly recognized as being among the best in upstate New York and the nation. The district was named a “National Blue Ribbon School” in 2017.

Pettograsso sees this recognition as “a nice pat on the back for the hard work our staff and students do and for the value our families place on a really-engaged district.”

“But awards are not what we are striving for – we are aiming for the best student experience possible,” she said.

Lansing Town Supervisor Ed LaVigne said at the town level, he saw the tax change coming.

“It progressed slowly, and we tried to hang on long enough to make adjustments,” he said.

LaVigne was elected to the town council in 2012 and as supervisor in 2016. In the time since, he has set his sights on reducing expenses and finding taxable growth to replace the revenue lost with the power plant’s closing.

“The power plant generated about $3 million (in taxes) for the town, school and fire department,” LaVigne said.

Residents’ tax bill is broken out roughly 66% to the schools, 26% to the county, 5% to the town, 2% to the fire department and 1% to the library, LaVigne said.

“So, the loss of the power plant represents about a $150,000 loss to the town in tax revenues,” he said. “We went through every bill and negotiated where we could. We saved money on cleaning, on garbage collection. We reduced staff – four people took early retirement.”

This bought time to get the tax base back up, LaVigne said.

“We run the town like a business and use taxpayer dollars as a last resort. At the same time, we look at value,” LaVigne said. “We have people who can fix toilets, do plumbing and put the roofs on the dugouts and the barbecue pavilion. They are expensive, but they are a great value to the people who pay their salaries.”

The loss of the power plant was the “worst-case scenario,” LaVigne said.

“Now, we are in a great position to withstand it,” he said. “And, if the power plant is resurrected as a data center, then great.”

Mike Sigler, Lansing’s representative to the Tompkins County Legislature, said the tax rate can be lowered as long as the levy goes up.

“That’s based on growth,” Sigler said. “The county is lucky because we have new businesses. Where communities struggle is increasing growth. When you build new stuff, it brings in more taxes.”

Chemung County and Elmira provide the same services to fewer people and are paying for that in higher tax rates, Sigler said.

“That’s why their property taxes are increasing,” he said.

LaVigne calls it “new lumber.”

“We’ve had a very strong building phase,” he said. “Take the Village Solars – each building adds $2.4 million to $2.6 million to the tax rolls – the Cargill investment in the new shaft, Milton Meadows, the new Salt Point Brewery, housing. We are seeing lots of duplexes. Assessments are up as well. My property tax assessment is up 11%.”

Both Sigler and LaVigne pointed to the natural gas moratorium as capping new growth.

“That does hurt us,” Sigler said. “If Borg Warner wanted to expand, for instance, it would need natural gas.”

LaVigne agreed.

“We lost 120 jobs when MACOM went to Massachusetts because they couldn’t get the gas,” he said.

Pull Out Exemptions

Though all property is assessed, not all of it is taxable. Some properties, such as those owned by religious organizations or governments, are completely exempt from paying property taxes. Others are partially exempt, such as veterans who qualify for an exemption on part of their homes and homeowners who are eligible for the School Tax Relief (STAR) program.

These are some of the most common property tax exemptions: STAR (School Tax Relief), senior citizens exemption, veterans’ exemption, exemption for persons with disabilities, exemptions for agricultural properties.
Learn more at: tax.ny.gov/pit/property/exemption/index.htm

In Brief:

High School Musical

Lansing High School will perform the musical “Once Upon A Mattress,” March 11 and 12 at 6:30 p.m. and March 13 and 14 at 7 p.m. in the Lansing Middle School auditorium.

Tickets are $5 on March 11 and $10 on March 12, 13 and 14. Tickets can be purchased at the door the night of the performance. Tickets can be purchased in advance at ltapa.ticketleap.com until 2 p.m. the day of the show.

Gaelic & Garlic Festival

All Saints Church will host an Irish- and Italian-themed festival, “Gaelic and Garlic,” at All Saints Church Sunday, March 15, from noon to 4 p.m.
Dinner options will include $15 Italian plates and $5 kids’ meals (with a $45 family-rate option – 2 adults and kids, 12 and under) and will be served until 3 p.m.

Come see local Irish step dancers, hear Italian music, join in face painting and enjoy great beverages.

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