School Budget Questions & Answers
How is the tax levy different from the tax rate?
The tax levy is the total amount of money a school district raises in taxes each year from all property owners in the district. Tax rates are calculated by dividing the total amount of the levy by the total taxable assessed value in a community. Tax rates are affected by changes in both municipal assessments and state equalization rates, which are determined in the summer. The tax rate is used to calculate each individual property tax bill.
Does the percentage of increase in the tax levy equal the percentage of increase in the tax rate?
No. Typically, the tax rate increase is lower than the tax levy increase. New home construction and businesses added to the tax roll can lower the tax rate.
What is the state’s School Tax Relief Program, or STAR?
New York State’s School Tax Relief Program, or STAR, provides partial school property tax savings to eligible homeowners. Most New Yorkers who own and live in their homes are eligible for STAR savings on their primary residences. Because the STAR program is not a district program, taxpayers STAR savings are not factored into a school budget. The 2023-24 STAR exemption amount decreased by $17.00 compared to the current fiscal year.
Why is there a library funding proposition on the school district ballot?
New York state education law allows libraries to place a funding proposition on school district ballots. It requires school districts, at the libraries’ requests, to levy and collect taxes for libraries. Libraries are separate legal entities from the school district, with their own funding and budgets. The school district does not endorse, control or recommend any aspect of how the libraries spend money. If voters approve the proposition, the school district would annually levy and collect taxes for the library beginning in the following fiscal year. The amount authorized for library services is listed as a separate line on residents’ tax bills.