Single Tax Rate

The North Colonie Central School District will switch to a single property tax rate commencing with the 2009-10 school year. This change will benefit families and others who own residential property, which makes up 60 percent of the assessed value of all property in the district.

What does a single property tax rate mean?

North Colonie currently has a two-tier tax rate, which means there are separate property tax rates for residential and commercial properties. Switching to a single tax rate means all properties will be taxed at the same rate, regardless of classification.

Why is a single tax rate necessary?

The two-tier system, implemented in 1994, was designed to limit the property tax impact on homeowners. This worked as intended until the 2008-09 school year, when for the first time the rate for commercial properties ended up less than that for homeowners, primarily due to the rapid rise in home values throughout the district. Because of that, the percentage of the total tax levy paid by homeowners has increased, and for the past three years that has meant greater tax rate increases for homeowners than for businesses.

The tax rate for residential property has increased each year since the two-tier system was implemented, but during that same time, commercial property owners saw decreases in three years, 2000-01, 2006-07 and 2008-09.

Since 1999, the residential property tax rate has increased 40 percent, while the commercial property tax rate has increased 33 percent.

What are the actual tax rates and increases for residential
and commercial properties in recent years?

Just two years ago, during the 2006-07 school year, residential property owners paid $19.27 per $1,000 of assessed value, while commercial property owners paid $20.36, meaning the commercial rate has gone down since then, while the residential rate has increased.

When will the 2009-10 tax rate be set?

The Board of Education will set the tax rate in August based on final assessment figures and final equalization rates for each town as provided by the state Office of Real Property Services.

Do I own residential property?

The residential property class includes single-family, two-family, three-family homes and other properties.

Visit the district's 2009-10 Budget Development page.