Q: If I buy a house after March 1st, can I still get the STAR exemption?
A: There are two answers to this one. If you buy an existing home with a STAR exemption already on it, you will get the benefit of the previous owners exemption. Just remember to file in your own name for the following year.
If you purchase a new home, you cannot get the exemption until the following year if you purchase the house after March 1st. One of the primary caveats to the granting of the exemption is residency on taxable status date, which is March 1st of any given year.
This is also true with any exemption, not just the STAR. Clay, as with all towns, follows the March 1 deadline for one main reason. We literally have thousands and thousands of exemptions that have to be reviewed, calculated, approved or denied. If people are denied they do have a second chance to contact us. All of this review and secondary review is done during the month of March. In early April, our files are shut down by Onondaga County for printing of the tentative assessment rolls by May 1.
Everything we do has to be done well in advance of its actual appearance on you tax bill in September. Where it sometime seems unfair, there has to be a cutoff point in order for the larger levels of government (county and state for school aid purposes) to utilize the data we provide
Q: If I buy a home for more or less than assessed value, will it automatically be changed to the sale price?
A: Home sales come in many flavors. We use the NYS RPS form RP-5217 to determine if a property is an “arms length “ transaction. This is a form filled out by an attorney at closing that shows “conditions of sale.”
Sales between relatives, business partners or bank repossessions are some of the transaction types that would cause a sale to be thrown out for valuation purposes.
Unless a Town Board has signed up for New York States annual revaluation program, it is unlikely but not impossible that your assessment will be changed to match a sales price. That may happen in non-revaluation towns if a physical incongruence is found when investigating the sale. Construction remodeling or other improvements that raise a value or a deferred maintenance/functional obsolescence issue that may lower perceived market value.
Q: How do I find out what my house is assessed for and what my actual taxes are?
Especially when buying a home?
A: Any assessors office or tax department will provide you with this information.
When buying a home I strongly recommend contacting the local municipal assessor and tax receiver to find out the details first hand so you are not caught off guard by assessment increases or tax amounts.
Q: Why did my taxes go up?
A: In general, the answer is that you live in New York State and your taxes will more than likely NOT remain stable.
To be more specific, the answer to increased taxes is a multi-dimensional scenario.
1. Budget Levy increase (school, county and or town)
2. Tax rate increase (school, county, town)
3. Special district increase (Fire protection, sewer charges, etc.)
4. Assessment increase
5. Escrow increase
The first place people go is the Assessors office. They automatically assume that the assessor is responsible for an increased tax bill. If your assessment has been increased, this is ONLY PART of the scenario and we can discuss this.
However, we will still take the time to explain to you the reasons behind the increase even if your assessment has not changed. Unfortunately, the reasoning that your “taxes” have increased has no bearing on the “fair market value” of your house, and should not be used as evidence that an assessment reduction is justified.
Remember that the Assessors office has no input into the budget decisions and subsequent tax levies requested by the schools, the county or the towns or reapportionment of said levies. If these taxing jurisdictions request more money, your tax bills will more than likely go up, even if there is no assessment increase.
An increase in your escrow account often has nothing to do with the local government. Escrow holders are allowed by federal law to charge a certain percentage above and beyond your actual taxes for administrative costs. They collect interest on this overage.
Q: What type of assessment increases is there?
A: Physical increases and Equalization increases.
A physical increase is an actual physical improvement to the property. Examples would be a sunroom, an addition, adding a bath, finishing a basement, or building a new garage. Assessors have the discretion to add value for any type of improvement they choose. An example would be a deck. Some will ad value for a deck, some will not. It depends on the philosophy of the assessor and the town in which they work.
An Equalization rate increase is based on an analysis of the sales in the market and the subsequent deviation from the current years market value.
It is a commonly held perception that if you do not improve your property with physical increases the value should not change.
This is not true. In an appreciating market property values increase year to year based on the fact that sales values are outpacing assessments. This has been true in Central New York for a number of years now, with some areas like Radisson in Lysander experiencing annual double-digit appreciation. This is why people like Donald Trump invest in Real Estate. It is a traditionally sound investment with reasonable return of investment
Q: Is this appreciation desirable for the average homeowner.
A: Absolutely. If the market is appreciating the average home increases in value without further investment. Think of it this way: Every time you use your key to unlock your front door, your house is worth more money. Your investment is growing. Your personal wealth is growing. An assessment reflects that market growth. This growth has spurred the refinance boom, and increased home values have allowed many people to tap into the increased equity for a multitude of purposes.
The downside is you pay a few more tax dollars.
Conversely, every time you use your key to start your car, your car is depreciating in value. To say nothing of the first initial years of depreciation, cost of gasoline and insurance cannot be recouped upon the sale. An automobile is the worst investment a person can make, yet how many people willingly spend $35,000 on a new car, then go back to the dealership a year later complaining that they LOST $10,000 DOLLARS. Not many, if any. People accept this tremendous loss of equity without a whimper.
Yet these same people will complain about a $200 tax increase.
Q: What is this “annual revaluation” that occurs in many towns.
A: Annual revaluation is an annual review of the assessment roll values. It is adjusted accordingly to reflect the market. Annual revaluation means all properties are reviewed. It does not mean they will all change. And it does not mean that your taxes will go up.
Q: Why does an Assessor do this?
A: This is a common question. And the answer will surprise you.
The Assessor does not initiate annual revaluation. Your Town Board signs a contract with New York State that outlines the criteria for the States perception of a successful revaluation. In order to receive the States reimbursement of $5 per parcel, the Assessor, his staff and any outside contractors must meet these criteria.
The Assessor is a person trying to do his job as directed by his board. They do not take this process lightly or personally. We recognize that “taxes” are a personal issue, but we appraise buildings, and are not targeting people who live in those buildings, though at times this may be a universal thought.
Two things to remember:
1. Town Board signs the contract to do revaluation.
2. An assessment increase is not a personal attack. It is a fact-based process that reflects market trends, analysis and standard valuation practices.
Q: How do I grieve my assessment?
A: The same method we use is an appropriate and professional manner in which to seek the results you desire.
We prefer comparable sales or assessments as proof of assessment reduction. The advantage lies with the taxpayer. As an Assessor, I can only use comparable sales to value your property. As a taxpayer, you can use comparable assessments as well as sales. If you live in a 1000 square foot ranch, look for other ranches in a similar size range, with comparable age and of comparable condition. Three or four comparables will do.
You can search the Onondaga county Website, http://ongov.net for similar properties or the New York State Office of Property Services website, www.orps.state.ny.us for information that will assist you.
Condition of the property also plays a part in its value. If the property is not in market value condition, such as a recent purchase of a repossessed and neglected home, an adjustment may be appropriate to allow for a renovation which will return the property to market value condition.
Q: Must I live in my house to receive an exemption?
A: Absolutely. Residency is a strict requirement as outlined by New York State property tax law except of the “Eligible Funds” Veterans exemption, which is no longer offered but still does exist on some. Homeowners’ files. An Assessor is firm on the residency requirement. It is non-negotiable.
Q: Can a husband and wife have more than one STAR exemption on different properties if only one spouse is on each deed?
A: No. If the couple is still legally married, only one exemption is allowed on one property. If there is a legal separation or a recent dissolution of the marriage, the paperwork must be provided as proof for more than one exemption to be granted.
Q: With all the new construction in Clay, why do my taxes still go up?
A: People see a lot of new construction. They believe that this revenue increase should lower taxes. What they don’t realize is that the Clay assessment roll is so large (3.5 billion dollars) than 70 million dollars in new construction every year is merely a drop in the bucket of tax dollars. It is an increase of 2%.
Taxpayers need to be aware that New York State, by law, sets the values of all Roll Section 5 properties, which include National Grid, Time Warner, Verizon and other assorted commercial entities. Due to the lobbying efforts of these companies, the State of New York collectively LOWERS the values of these properties every year.
In the last 5 years the Town of Clay has lost 120 million due to these lobbying efforts and adjustments made by the State of New York. That is a LOSS of 20 million per year on the Town of Clay assessment roll.
When I begin a new assessment roll every year, I am starting at “negative 20 million” not building from zero.
You also must ask yourself if it is not true that your household budget due energy costs, food costs. etc. is always increasing faster than your personal revenue enhancements.
The same is true of governments. Their costs rise much faster than inflation, just like your household budget. New construction does not cover that increase in cost. It would make my job easier if it did.
Taxpayers must also understand that it cost an average of $14,000 to educate one student in New York State. One $200,000 home generates approximately $5,000 in school taxes. If that home has three school age children living there, it costs the state $42,000 to educate that child while receiving $5,000 in school taxes. This is a $37,000 deficit that has to be made up by other taxpayers. New housing only INCREASES taxes. The PUBLIC pays the difference. That is why it is called “public education.”
The only true revenue enhancer is
commercial construction, and Clays’ award winning Planning Department attracts
and manages development better than any town in upstate New York.
Currently substantial attention is being directed by politicians towards the concept of “consolidation of government services.” When you review the data below you will recognize that the great majority of your hard earned tax dollar goes to the school districts. Small government consolidation and the movement of services to larger bodies of government would virtually eliminate the personal customer service the taxpayer deserves while saving mere pennies on the dollar in a “best case” scenario.
TAX BILL BREAKDOWN
Average “TAX BILL” percentage breakdown, Town of Clay-outside the Village of North Syracuse on an average single family home. (What percentage of your money goes where)
-School Tax 69%
-Library Tax 1.8%
-County Taxes/State mandated costs 10.8%
-Town of
Clay Tax
(Administrative operating budget) 2.8%
-Town of Clay Highway Tax 4.5%
(Highway operating budget)
-County Sanitation 1.9%
-Consolidated Drainage 1%
-General Fire Protection 2.9%
-Clay Waste Disposal 3%
-Misc. services 2%
-Clay Water Service (if no OCWA) .3%
If you have questions about any of this information, please contact us at 652-3800.
Rob Bick, Assessor
Town of Clay