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Politics & Government

Village Opts Out Of State Real Estate Tax Cap

Altadonna vows to keep costs down, while still providing required services to residents.

The Board has voted to opt out of the state's two percent real estate tax cap this year.

Mayor James Altadonna, recovering from recent hip surgery, addressed those attending  this week’s Village Board meeting on the reasoning behind the unanimous decision to allow a real property tax levy in excess of the tax levy limit as defined by New York State.

"It is important to remember that passing the law doesn't mean that we must exceed the tax cap...it simply gives the governing body the authority to do so," Altadonna said. "People need to understand that this tax cap is no tax cap at all; it does nothing to address State mandates, which are real cost-drivers in municipal budgets, and are the real cause of New York's high property taxes."

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Altadonna said the tax cap law contains exclusions, such as pension costs which, when taken into account, makes the cap more in the neighborhood of three to four percent, if not higher.

"It's also important to note that the cap is on the tax levy, not the tax rate," Altadonna added. "Even with the two percent tax cap in place, residents may still experience an increase of more two percent...in some cases, much more."

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Altadonna attempted to soothe resident apprehension by saying the village has had a strong record of fiscal responsibility in the past.

"Since this Board has been in existence, we've had an average tax increase of 2.6 percent per year, from 2001 to 2011," he said, citing several years where there was no increase at all, the last being 2010. "It is this Board's wish this year not to exceed the tax cap."

Altadonna cited unreliability in the state's fledgling tax cap system as the primary reason the village decided to opt out this year.

"The State Comptroller’s office still hasn't come up with a calculation that we feel comfortable using...therefore, we're protecting our village by not adopting the tax cap," he said. "We still don't even have an accessed valuation, which isn't supposed to come until February," Altadonna said referring to tax assesments given to municipalities.

Deputy Mayor Jeffrey P. Pravato said that, under the State's current guidelines, even adhering to their protocols can work against a municipality.

"The rules are not clear, and if you don’t follow them correctly there are penalties,” he said. “You might think you’re doing it right, but you’re actually doing it the wrong way, and it costs you more.”

"We've been sticking to a low-cost formula here," Altadonna said. "We've laid off 14 people...we're as bare-bones as we can be to provide the services that the Village residents require, and we're managing towards that goal. But we still have a good credit rating, we still have a budget surplus...it's a credit to this board that we do what we do."

Other issues addressed at the Board meeting were several tax refunds, the discussion of possible four-way stop signs installed at two intersections, and the approval of two sign permits for local businesses.

The next meeting of the Massapequa Park Village Board is scheduled for Monday, Jan. 23, at 8 p.m.

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