Friday, April 3, 2009

ADK: Plan To Cap State Tax Payments Officially Dead

The Adirondack Mountain Club has just announced the final death of Governor Paterson’s plan to cap tax payments on state owned land. The state will now continue to pay its fair share of local taxes on Forest Preserve lands in Adirondacks and Catskills and on other state-owned forest and park lands statewide.

Since 1886, in recognition of the impact of large state land holdings on local tax rolls, New York has voluntarily paid local property and school taxes on Forest Preserve lands. Over the years, the Legislature has extended the payments to other areas with large tracts of state forest or park land. In 2007-08, New York paid more than $170 million in local taxes on more than 4 million acres.

Under the Executive Budget, those payments would have been frozen at 2008-09 levels, which would have caused double-digit property tax increases in some rural communities and severely undermined local support for open-space protection programs statewide. Local governments have the right to veto most state land deals financed through the Environmental Protection Fund. The proposed payment freeze was stricken in a budget deal last week, but it was not officially dead until the state Senate passed the relevant bill late Thursday.

While the tax freeze has been widely viewed as an Adirondack and Catskill issue, the fact is that half of the state tax payments in 2007-08 went to communities outside the 16 Adirondack and Catskill counties. For example, the state pays full property taxes on Harriman State Park, Sterling Forest and Allegany State Park, and pays school taxes for the site of Sing Sing Correctional Facility in Westchester County. In 2007-08, the state made $33 million in local tax payments in Rockland County, $19 million in Suffolk County, $11.9 million in Orange County, $4.8 million in Cattaraugus County, $3.2 million in Putnam County, $3.1 million in Chenango County, $1.8 million in Dutchess County and $1.2 million in Allegany County. The tax freeze would also have hampered efforts to protect New York City’s Catskill/Delaware watershed, which provides drinking water to 9 million New Yorkers.

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