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Tax Gaps, Oh My

 State: NY


County Considers Comp-Driven Changes to Tax Cap


Officials in Fulton County, N.Y., are considering changes to calculations of its property tax cap to account for workers' compensation coverage provided to member cities and towns, the Leader-Herald newspaper reported.


New York State Comptroller Thomas DiNapoli has said the cost of coverage for municipalities through county self-insurance plans should be included in the calculation of their tax caps.


The newspaper, based in Gloversville, N.Y., said the county may opt to increase its tax cap calculation as a result of the changes. Jon Stead, Fulton County administrative officer, said counties often provide services which they charge back to municipalities. County Budget Director Alice Kuntzsch told the Board of Supervisors' Finance Committee on June 27 there's a disparity in the application of workers' compensation costs in the local tax caps.


"This workers' comp insurance we put on the county's side of the house is really part of the levy part of the (municipalities) because it's part of their bill," Kuntzsch said.


The Finance Committee will hold a public hearing on the issue on Aug. 12.


Kuntzsch said DiNapoli considers workers' compensation payments a cost to each municipality and should be in the calculation for tax caps.

New York lawmakers passed a law that took effect on Jan. 1, 2012, limiting the annual growth of property taxes levied by local governments and school districts to 2% or the rate of inflation, whichever is less.


The New York State Association of Counties is estimating many of the municipal tax caps statewide will end up being "well below" 2% for 2014.


The story is here.


Source: The Leader-Herald

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