Kingston Uptown Residents� Alliance Presents� by B1J2u4


									Kingston Uptown Residents’ Alliance

“$5,000,000 WASTED!”

Victoria Hoyt
KURA Executive
     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 Soldner
        Victoria Hoyt
       Judith 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

        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

• 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.
                                2007            2010          Growth ’07-’10      vs Kingston

City of Kingston               .348             .370               + 6.3               N/A
Town of Ulster                 .191             .186               - 2.6              - 8.9
Town of Esopus                 .202             .198               - 2.0              - 8.3
Town of Rosendale              .082             .078               - 4.9              - 11.2
Town of Hurley                 .091             .088               - 3.3              - 9.6
Town of Woodstock              .065             .060               - 7.7              - 14.0

* 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.

    Municipality                2007        2011          Change            vs Kingston

    City of Kingston            .083        .090            +8%                  N/A
    Town of Ulster              .075        .068            -9%                 -17%
    Town of Esopus              .047        .046            -2%                 -10%
    Town of Rosendale           .029        .028            -3%                 -11%
    Town of Hurley              .043        .046            +7%                 -1%
    Town of Woodstock           .075        .070            -6%                 -14%
2010 Sales -vs- Assessments
 Source: ORPTS Sales Web 2010 data for Kingston, N.Y.

       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.

Year     Assessed Value   Reduction in   % Reduction   # of Cases
           ($ million)     Assessed
2008          $27.5           $6.6          23.8%          26

2009          $13.7           $3.4          25.1%          33
2010          $3.2            $1.3          40.9%          24

Totals        $44.4          $11.3          25.5%          83

• 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

• 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
            for just this one year!
Kingston’s Properties Have Been Over-assessed

       Supreme Court (Certiorari) cases
   have reduced assessments by an average
   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
    and local Realtors estimate that
  commercial prices have declined even
Kingston’s Properties Have Been Over-assessed

Kingston’s Properties have been Over-assessed
                  by at least
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
Municipality                         KSD TAV                   Apportionment Rate     Tax Levy ( $ 91,123,514)
Kingston City                     $1,612,819,244                       35.2%                 $32,075,477
Esopus                              $751,681,504                       16.4%                 $14,944,256
Hurley                              $307,201,610*                       6.7%                   $6,105,275
Kingston (Town)                      $93,995,628*                       2.1%                   $1,913,594
Marbletown                            $1,389,800                        .03%                      $27,337
New Paltz (Town)                      $2,470,000                        .05%                      $45,652
Rosendale                           $292,230,893                        6.4%                   $5,831,905
Saugerties (Town)                     $8,291,026                         .2%                    $182,247
Ulster                            $1,295,296,902*                      28.3%                 $25,787,954
Woodstock                           $215,635,810*                       4.7%                   $4,282,805
Total                             $4,581,012,417                        100%                 $91,123,514
         *Equalized to 100% Assessed Value. All others were 100% of Assessed Value.
        Impact of 2011 School Taxes of the 10%
            Reduction in Assessed Value
Municipality                 KSD TAV              Apportionment Rate         Tax Levy ( $ 91,123,514)
Kingston City              $1,612,819,244               35.2%                       $32,075,477

• If the pre-reduction Taxable Assessed Value was used:
Kingston City              $1,793,888,588               39.2%                     $35,720,417
• The tax savings for the 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?

ELEMENT                          NO REDUCTION        10% REDUCTION        25% REDUCTION

Taxable Assessed Value (TAV)        $200,000             $180,000             $150,000
Kingston City Tax                     $1,420               $1,420                $1,420
Less lower County Taxes                 $746                 $671                 $560
(Due to lower Apportionment)

Total City Taxes                      $2,166               $ 2,091               $1,980

Kingston School District Taxes        $3,198               $2,878                $2,399
TOTAL TAXES                           $5,364               $4,969                $4,379
PERCENT REDUCTIONS:                                       - 7.4%               - 18.4%

• 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.

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.
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)

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.
 KURA Volunteers
    Welcome Victoria Hoyt
   Moderator Jerry Soldner
    Presenter Dr. Doris Soldner, Victoria Hoyt, Judith
  Entry Table Dr. Doris Soldner, Melissa Sweeney, Judith
              Sullivan, Sari Meyer, Merle Borenstein
Floor Manager Harmony Water
     Publicity Jim Naccarato
    Graphics Eric Winchell
       Set-up Jack Sullivan, Judith Sullivan, Eric Winchell,   Dr.
               Jeffrey Greene, Dr. Carlton Hoyt, Dr. Doris
               Soldner, Jerry Soldner, Victoria Hoyt

   A Special Thanks To The Old Dutch Church

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