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Kingston Uptown Residents’ Alliance Presents… “ $5,000,000 WASTED! ” 6.23.2011. WELCOME Victoria Hoyt KURA Executive Committee. Mission Statement. Jerry Soldner KURA President. KURA is a non-partisan association of residents, both owners and renters.
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Kingston Uptown Residents’ AlliancePresents…“$5,000,000 WASTED!”6.23.2011
WELCOME Victoria Hoyt KURA Executive Committee
Mission Statement Jerry Soldner KURA President KURA is a non-partisan association of residents, both owners and renters. Its purpose is to address the issues that impact the quality of life for the Kingston, NY neighborhoods.
Special Guest Robert L. Beebe, Esq. Former General Counsel to the New York State Board of Equalization and Assessment
“$5,000,000 WASTED!”Dr. Doris SoldnerVictoria HoytJudith Sullivan
Key Terms Explained Taxable Assessed Value (TAV): The total of the taxable assessed value of properties in a municipality. Tax exempts are NOT included. If less than 100% Market value, the TAV’s are adjusted by the State to reflect 100%. (Equalization) For perspective, using the 2010 final tax rolls at 100% market value the TAV’s were: City of Kingston $1,772,321,720 Ulster County $78,374,331,000 All Municipalities Kingston School District $4,213,940,709 Part of 10 Municipalities
Key Terms Explained COUNTY Apportionment Rate The municipality’s total Taxable Assessed Value (TAV) divided by the total TAV for the County. This determines the municipality’s share of the County taxes (tax rate).
Kingston TAV ÷ County TAV = County Apportionment Rate
SCHOOL DISTRICT Apportionment Rate The municipality’s Taxable Assessed Value (TAV) attributed to the KSD divided by the total TAV for the Kingston School District (KSD). This calculation determines the municipality’s share of the Kingston School District taxes (tax rate).
Kingston TAV ÷ School District TAV = School District Apportionment Rate
Implications at the City Level • The City of Kingston creates a budget. Other revenue sources are then applied to calculate the city tax requirement • The total Taxable Assessed Value has no effect on your City tax bill, whether the TAV goes up or down. • If all individual assessments change by the same percent there will be no change to your tax bill. • The major role for assessing at the City level is to insure that each of Kingston’s taxpayers pays his fair share of taxes
Have Kingston Properties Been Over-Assessed and If So, By How Much?
Taxable Assessed Value Trends • ( From 2008, the first year of revaluation, to 2010, the latest date for final data.) • Kingston’s TAV has increased since 2008, despite a steeply declining real estate market. • This defies credibility. * As stated in the Kingston 4 year plan (2/17/09), based on ORPTS data. ** NYS Real Property System, County of Ulster, 2010 Current Year File, Roll Section Summary NOTE: Direct comparison is difficult because of additions due to building and deletions from tax rolls due to exemptions, seizures, etc. In the case of Kingston, there were both additions and deletions but the net difference should not materially affect the growth calculations.
Kingston’s Apportionment Rate for the School District is Increasing, while the Rate for Other Towns is decreasing. * Kingston Apportionment Rate = Kingston Taxable Assessed Value / the total TAV for the School District Source: Ulster County Real Property Tax Rate Forms ( 9/6/2007, 9/3/2008, 9/2/2010) for KSD ( These six municipalities contribute 98% of KSD tax revenues.)
County Apportionment and Tax Implications • Source: Ulster County 10 Year Apportionment Study • Apportionment is Kingston’s share of County tax revenue requirements (Taxes) and is • based total Taxable Assessed Value. • Kingston’s failure to reflect reduced property values over the period has resulted in increased County taxes when compared to other municipalities. • A substantial discrepancy between Kingston and its neighbors has developed over the period, resulting in a higher share of taxes for Kingston taxpayers.
2010 Sales -vs- Assessments Source: ORPTS Sales Web 2010 data for Kingston, N.Y. ASSESSMENTS EXCEEDED SALE PRICES BY 26.7% FOR 2010 ALONE!
Results of Certiorari Cases • 2008 - 2010 • For This Period, The Average Reduction of Assessed Valuations by • The Court was 25.5% per case. • During this period, there were also many Small Claims Court Assessment Reviews (SCAR), which also produced sizable reductions.
Market Experience Indicates a Steep Decline in Real Estate Prices • The Ulster County Board of Realtors has reported that housing prices have declined by 27% from 2007 through 2010. In 2011, the Board reported that prices dropped another 5%, for an overall total of 32%, since 2007. • Local Realtors have indicated that commercial prices have declined even more. • As reported by the Empire Center, Kingston has had the 3rd highest per capita taxes for cities in New York State. Only Rye and White Plains were higher, and their per capita incomes far exceed that of Kingston. High taxes cause even greater decreases in prices than Ulster County overall.
Kingston’s Properties Have Been Over-assessed Kingston’s Taxable Assessed Values have increased, while the market has declined sharply. This defies credibility and provides insight into the magnitude of the over-assessment.
Kingston’s Properties Have Been Over-assessed Kingston’s Apportionment Rates for the County and School District have increased significantly, while adjoining communities have decreased. This raises your County and School Taxes!
Kingston’s Properties Have Been Over-assessed 2010 Sales show that assessments have exceeded market prices by 26.7% for just this one year!
Kingston’s Properties Have Been Over-assessed Supreme Court (Certiorari) cases have reduced assessments by an average 25.5% In addition,SCAR (Small Claims) reviews have resulted in substantial reductions.
Kingston’s Properties Have Been Over-assessed The Board of Realtors and other Market data show price reductions of 32% and local Realtors estimate that commercial prices have declined even more.
Kingston’s Properties Have Been Over-assessed CONCLUSION: Kingston’s Properties have been Over-assessed by at least 25% Kingston taxpayers have paid and are continuing to pay millions of dollars in excess taxes to the County and School District. Kingston is subsidizing its neighbors!
Impact of Recent Assessment Reductions • The Assessor’s office reduced the assessed valuation for 7,900 of Kingston’s approximately 8,300 taxable properties: • Residential: Commercial: Overall: • -9.94%-10.69%-10% Why wasn’t this done sooner? Why wasn’t the reduction greater?
Impact of 2011 School Taxes of the 10% Reduction in Assessed Value *Equalized to 100% Assessed Value. All others were 100% of Assessed Value.
Impact of 2011 School Taxes of the 10% Reduction in Assessed Value • If the pre-reduction Taxable Assessed Value was used: • Kingston City $1,793,888,588 39.2% $35,720,417 • The tax savings forthe Kingston taxpayers will be $ 3,644,940 for School Taxes, pending finalization of the rolls on July 1. There would be a similar savings, but smaller amount, for County Taxes of $695,000. • Total decrease in taxes for just one year at a 10% reduction in TAV are $4,339,940. • Total decrease in taxes for just one year at 25% reduction would have been $10,707,976.
How Would All of This Have Affected You in 2010? IF YOU OWNED A PROPERTY WITH AN ASSESSED VALUATION OF $200,000 … • If Taxable Assessed Values (TAV) had been reduced, the combination of lower County and School Taxes would have saved this Kingston taxpayer between $400 and $1,000 in 2010 due to lower Apportionment rates. • Proportional Reductions in taxes would have been realized by properties with higher and lower valuations, as well as commercial properties.
Summary • At the City Level: • The total Taxable Assessed Value has no effect on your City tax bill, • whether if it goes up or down. • If individual assessments are changed by the same percentage, there would be no change in your tax bill. It is for this reason that those who recently received a reduction of their assessments were told that it did not mean a similar reduction in their taxes. • It should be kept in mind that the major role for assessing at the City level is to insure that each of Kingston’s taxpayers pays his fair share of the City taxes in relation to his neighbors.
Summary • At the County and School level: • The Taxable Assessed Value (TAV) of the City can have a major impact on the individual’s tax bill. • The City’s TAV determines the share of County and School Taxes which will be paid. • The higher the City’s TAV, the larger the share of the County and School Taxes you pay. • The lower the City’s TAV, the smaller the share of the County and School Taxes you pay. • Kingston is over-assessed by at least 25%. • The negative financial impact on Kingston Taxpayers’ TOTAL taxes, ranges from $4,000,000 - $11,000,000 per year!
What Can You Do About it? • EMPOWER YOURSELF: Become and keep informed on the matter (like attending tonight’s meeting) • MAKE YOUR GOVERNMENT WORK FOR YOU: VOTE for those candidates who understand the problem and commit to doing something about it, regardless of party affiliation. • GET INVOLVED; DO SOMETHING: Assist organizations like KURA to focus attention where it is most needed. • CHALLENGE your property assessment, if it inequitable.
