The NT City Schools Board of Education approved the Veteran's Tax Exemption at the minimum level at its meeting Wednesday, Feb. 3, 2016.
Q: What is a non-binding referendum?
A non-binding referendum is a question that is included on a ballot vote. Voters are asked to answer the referendum, but the results are non-binding.
The results of the May 19, 2015 non-binding referendum were 852 yes votes, 359 no votes.
Q: What is the Veterans’ Tax Exemption?
The Veterans’ Tax Exemption is a reduction in taxes for veterans who served in a time of war. The amount of the exemption can vary based on whether the veteran served in a combat or non-combat zone and whether or not they have a service disability. There are no income requirements for the exemption.
Q: Why are school districts considering this now?
In December, 2013, Governor Cuomo signed legislation that authorized school districts to offer this exemption. Previously, only towns, cities, and other municipalities could offer the exemption.
Q: Is the school district required to offer this exemption?
No, the Board of Education has the authority to decide whether or not to offer the exemption.
Q: How does the exemption work?
The exemption lowers the tax bill for qualifying veterans and increases the taxes collected from all other property owners. The total amount collected by the school district remains the same; the exemption shifts where the money comes from.
Q: Do I automatically qualify for the exemption if I am a veteran?
No, Cold War veterans do not qualify for this exemption. If you receive the Pro-Rata veteran exemption with the city currently, you need to fill out an application to receive the Alt veteran exemption. If you already receive the Alt veteran exemption through the city, this information will automatically be accessible if the Board of Education offers the exemption.
Q: How does the total number of veterans who apply affect the tax bills for homeowners without the exemption?
The only individuals that would have to fill out an application are the veterans in the school district that currently have the Pro-Rata veteran exemption that could apply for the Alt veteran exemption.
Q: What are the three levels of exemptions?
Minimum Exemption level is $6,000 (Wartime Non-Combat Vet) / $10,000 (Combat Vet) / $20,000 (Disabled Vet).
Match City Exemption level is $18,000 (Wartime Non-Combat Vet) / $30,000 (Combat Vet) / $60,000 (Disabled Vet).
Maximum Exemption level is $36,000 (Wartime Non-Combat Vet) / $60,000 (Combat Vet) / $120,000 (Disabled Vet).
Q: What level, if any, is the Board of Education considering adopting?
The Board is surveying the community based on the lowest exemption levels of $6,000 (Wartime Non-Combat Vet) / $10,000 (Combat Vet) / $20,000 (Disabled Vet). See the charts below to understand the possible impact this has on tax bills.
Examples of the Exemption Levels
MINIMUM LEVEL
Effect on Assessed Home Value
($100,000 is being used as an average home assessment value for North Tonawanda)
|
Without an Exemption
| Home Assessed at $100,000
| $29.18 increase to tax bill
|
Maximum Wartime (Non-Combat) Exemption
$6,000
|
If Assessed Home Value: $100,000
$100,000 - $6,000 New Assessment Value: $94,000 |
$130.44 decrease to tax bill |
Maximum Combat Exemption
$10,000
|
If Assessed Home Value: $100,000
$100,000 - $10,000 New Assessment Value: $90,000 |
$217.41 decrease to tax bill |
Maximum Disabled Exemption $20,000 |
If Assessed Home Value: $100,000
$100,000 - $20,000 New Assessment Value: $80,000 |
$434.81 decrease to tax bill |
MATCH CITY (NT) LEVEL
Effect on Assessed Home Value
($100,000 is being used as an average home assessment value for North Tonawanda)
|
Without an Exemption
| Home Assessed at $100,000
| $68.37 increase to tax bill
|
Maximum Wartime (Non-Combat) Exemption
$18,000
|
If Assessed Home Value: $100,000
$100,000 - $18,000 New Assessment Value: $82,000 |
$391.33 decrease to tax bill |
Maximum Combat Exemption
$30,000
|
If Assessed Home Value: $100,000
$100,000 - $30,000 New Assessment Value: $70,000 |
$652.22 decrease to tax bill |
Maximum Disabled Exemption $60,000 |
If Assessed Home Value: $100,000
$100,000 - $60,000 New Assessment Value: $40,000 |
$1,304.44 decrease to tax bill |
MAXIMUM LEVEL
Effect on Assessed Home Value
($100,000 is being used as an average home assessment value for North Tonawanda)
|
Without an Exemption
| Home Assessed at $100,000
| $74.15 increase to tax bill
|
Maximum Wartime (Non-Combat) Exemption
$36,000
|
If Assessed Home Value: $100,000
$100,000 - $36,000 New Assessment Value: $64,000 |
$782.67 decrease to tax bill |
Maximum Combat Exemption
$60,000
|
If Assessed Home Value: $100,000
$100,000 - $60,000 New Assessment Value: $40,000 |
$1,304.44 decrease to tax bill |
Maximum Disabled Exemption $120,000 |
If Assessed Home Value: $100,000
$100,000 - $120,000 New Assessment Value: -$20,000 |
$2,608.89 decrease to tax bill |
