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  • Democrat and Chronicle

    'Historic decrease' or 'smokescreen'? Property assessment, tax rate sparks debate

    By Genae Shields, Rochester Democrat and Chronicle,

    2024-05-16
    https://img.particlenews.com/image.php?url=4VP6XY_0t4PhQdt00

    In the wake of Rochester's property reassessment and the Mayor's new budget, community members like Cheryl Robinson want more transparency.

    "It doesn't feel right," Robinson said. "They weren't being transparent about the process. You get this stuff in the mail, and it says, this is what we're telling you, and this is the way it is, without really identifying how they did it, how they did the process. A lot of people need help with that process, with a lot of things, with a lot of information to improve their quality of life."

    Some have called for a pause on the reassessment due to the potential financial burden it could place on residents. However, the city said that homeowners would have faced an increased tax rate had they not done so. City Council president Miguel Meléndez said homeowners will not experience an inequitable burden due to higher property values.

    Here's what you need to know:

    • Houses in Rochester have been reassessed at significantly higher values in 2024.
    • Because of the increase in assessments, the mayor has reduced property tax rates.
    • As a result, the city's overall revenue from property taxes will remain flat for the third straight year.

    "As we have promised from the start, the increase in property values across the city is a good thing for our residents, business owners, and Rochester as a whole," Mayor Evans said. "We are experiencing increased property values, a historic decrease in our property tax rate, and an increase in available tax credits from New York State."

    How will the assessment affect homeowner taxes in Rochester?

    Homeowners with a 60% or lower increase in their assessed value will see a decrease in total property taxes – even with the increased home values. Owners with a value increase higher than 60% may see increased taxes. However, it is expected to be lower than initially estimated, given the decrease in the new tax rate.

    In addition, the city says many property owners will benefit from increased tax credits from New York State.

    Last week, New York State confirmed that the School Tax Relief (STAR) program has increased the benefit for qualified homeowners in Rochester. With a 42% increase, the Enhanced STAR credit is now $71,570, and the Basic STAR credit increased by $7,070 to $25,560.

    These increases are designed to reduce the tax burden on Rochester's seniors. In addition to STAR credits, seniors and veterans can also qualify for tax exemptions.

    City councilmember questions reassessment process

    City Council Member Willie Lightfoot believes council members must be adequately briefed on the mayor's and assessors' decision-making processes.

    "This reassessment and the decreases in taxes, personally, I think it's a smokescreen," Lightfoot said. The mayor and the assessor have all of the data and information from the state now, and that's problematic because I, as a council member, do not. If we don't have all the information and we're co-partners in government, then of course the taxpayer doesn't have all the information either."

    Lightfoot believes the city has been cutting corners, creating barriers for residents to voice their opinions, and determining the reassessments using a computerized system with a 70% accuracy rate.

    "Part of the assessor's job is to educate the community," he said. "There was no education on this process this year. The only reason why the fact-finding sessions happened is because we challenged them on this assessment and asked for a pause."

    Lightfoot understands that understaffing could cause problems and proposes solutions to recruit staff and make the process more equitable.

    'Prosperity budget' or 'gentrification budget'?

    Over the weekend, Mayor Evans today presented a "Prosperity Budget" in the proposed 2024-25 operating budget that will make cuts to property tax rates and increase investments in strategic initiatives.

    The proposed budget calls for total spending of about $697 million, an increase of about 1.4 percent over the current budget. Service fees for refuse, recycling, and local works will not be increased.

    It will also fund critical investments in innovative programs and services to contribute to the city's growth, rising property values, and improved economy.

    Funds are available to assist residents in adapting to this transition and encourage enrollment in New York State's newly expanded property tax exemptions.

    Despite a 37.7 percent reduction in the residential property tax rate and a 27.8 percent reduction in the commercial rates, many homeowners are already facing financial burdens. Residents and council member Lightfoot also raise concerns about the mayor's involvement with the community and how this significant decrease will change taxes in other areas.

    "The mayor never brought all council members together and had a conversation about this situation," Lightfoot said. "The people came out in droves, [the] largest amount of speakers you ever had at a council meeting since I've been on council. A lot of people talked about this particular issue, and the mayor never sat in.

    Lightfoot also challenges the city to transparently identify which specific communities these changes and the proposed budget will most impact, branding it a "gentrification budget."

    "Tell us whose taxes are going up, whose is going up and where," he said. "I will guarantee you when we start to extract that information, which should be public, it's going to be in the same areas that are already overburdened and that are already poverty-stricken."

    The councilmember went on to say the violence that occurs in these communities is due to the financial burdens residents often face. "The people are out here crying, and you know how they're crying through the crime and violence that we're having because financial violence is being inflicted upon them."

    Clay Harris, founder and president of United and Healing Through Hope of Monroe County, thinks the mayor and city council members need to listen to the people's concerns.

    "Mayor ain't had no conversation with the community yet," Harris said. "Rents are going up already, skyrocketing. You wait till this is implemented and houses start selling two and three times because they say it's 'market value.' Now they got to pay the mortgage. They got to pay the insurance and the taxes sure going to increase that way. How are they going to pay their rent? Can't afford it now."

    — Genae Shields is the business & development impact reporter. Reach out at gshields@gannett.com or on Instagram: @genaebriphoto for questions, comments, or concerns. Thank you for your continued support!

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