Property Taxes
Fair Property Taxes in Tompkins County
Ithaca and Tompkins County made headlines recently for the strength of our local housing market. While this is good news for some property owners, increased values can lead to hikes in the assessed value of the homes, wreaking havoc on working families during these tough economic times.
An increase in assessment doesn’t always mean higher taxes. However, because the city, towns, county, and school districts each set a tax levy, the varying influences and pressures from each taxing authority interact in such a way that homeowners who see a rise in the assessed value of their homes can also expect to receive a higher property tax bill. Many may see this as a fair tradeoff for living in a thriving community. Tompkins County is highly regarded for its quality of life, much of which is sustained through public services paid with tax dollars.
However, in this economic downturn, for working families, the unemployed or underemployed, retirees and those on fixed incomes, the rise in assessment leads to unmanageable property taxes. Working class neighborhoods like Fall Creek are becoming more gentrified by an influx of well-educated workers whose salaries can more easily bear the rising tax burden. While critically important to maintaining the vitality our neighborhoods, for some who are currently in dire economic straits, this demographic boon has proven to be a curse rather than a blessing. For these, unless they are preparing to sell or refinance their home, steadily increasing assessments can represent financial disaster.
For example, a one bath, two bedroom home on Linn St. sold in 2003 for $115,000, and in 2008, it was assessed at $180,000. In six years time the assessed value of this property rose well over 50%. The total tax rate in this same period essentially remained stable. However, the annual property tax bill for this home rose from $4379.43 in 2003 to $6,685.20 in 2008, or a hike of $2305.77 or 53%, well beyond the cumulative inflation rate of 19.61% for that same period.
Increases such as these are unsustainable for the retiree on a fixed income, the single mother supporting her family on one income, or the working class couple planning for the education of their children. These increases force homeowners to sell their homes or make harsh financial decisions such as forgoing health care, proper nutrition, or saving for education. A society that taxes the working class, the financially disadvantaged and the elderly out of their homes loses important parts of its history, diversity, and quality of life.
Even as the total assessed value of Tompkins County properties escalated, school and municipalities’ costs have risen, while tax rates have remained relatively stable. Many increases in local government service costs stem from state mandated programs, such as Medicaid. Another factor is rising costs of health and retirement benefits for municipal employees, over local taxing authorities have little direct control.
Solutions to this moral dilemma involve complex balancing of community values. City, town and county officials must balance the need for revenue with the responsibility to control spending. Like the families in Tompkins County, officials must budget prudently and fairly, sustaining our quality of life while not abandoning our dreams.
On the national level, President Obama’s healthcare initiatives could lower health care costs to individuals. Comprehensive healthcare reform could alleviate the rising costs of Medicaid and health benefit programs, which would benefit local municipalities struggling with public benefits for retirees.
On the state level, Governor Paterson’s proposed property tax cap offers a solution to limit the increase in school tax levies each year to the lesser of 4% or 120% of the Consumer Price Index, thus placing an external control on the rising costs of funding public education
We must continually evaluate the balance between sustaining funding for public and social services and the costs of providing those services. When crucial decisions are made regarding tax dollars, we must be willing to give voice to our opinions, recognizing that paying for the high quality of life we enjoy demands a community benefits calculation involving equity, compassion, motivation, and planning for the future. Certainly, for Tompkins County to retain its unique racial, cultural and socioeconomic diversity, we must ensure that our neighbors can continue to afford to live in our community.
Further information on property taxes in Tompkins County and across New York State can be found at the following resources:
- Tompkins County Department of Assessment
- How Property Tax Works
- New York State Office of Real Property Services
- 21st Century Local Government: Report of the New York State Commission on Local Government Efficiency & Competitiveness
- The New York Property Tax Cap Coalition
- Fiscal Policy Institute
- Report: How High Is The Upstate Tax Burden – and Why?
- The Public Policy Institute of New York State, Inc.
To talk to your neighbors about this important subject, join the discussion at the Tompkins County Property Tax Discussion Forum.
(Many thanks to Fall Creek resident Rob Costello, who helped with researching and outlining this post.)