ECS sorts out utility tax problem

By DAVID HULSE

	TRR photo by David Hulse ECS Board of Education president Bob Burrow makes a parting presentation to retiring Superintendent Candace Mazur at her last board meeting on August 21. (Click for larger image)

ELDRED, NY — Having been unable to sort out differences of opinion about the utility’s assessed value over the past four years, Eldred Central School officials last week metaphorically sent Mirant to the corner for a “time out.”

The ECS board on August 19 approved a resolution activating new a state law that in effect removes the owners of the former Orange and Rockland Mongaup River hydroelectric facilities from the Town of Lumberland’s tax base for purposes of property tax equalization.

The utility amounts to between eight and nine percent of the district’s tax base. An ongoing tax assessment appeal by Mirant has in recent years fouled efforts to balance the district’s tax rates between its principal municipalities, the towns of Highland and Lumberland. The result has been a shift of the tax burden to Highland.

The new state law designates Mirant as a “property which may be subject to the alternative optional method for apportionment,” which in plain English means that the district is able to set a separate tax rate solely for the utility property.

At the same time, assessors in both towns have re-assessed properties with a goal of valuing both at 100 percent of their market values.

By taking the taxes for Mirant off the top, some $640,000, ECS was able to tax the bulk of the remainder at the same rate between the two towns. Small portions of Deerpark and Tusten, assessed at less than 100 percent of full value, are also in the district and after equalization their tax rates will also be in line with Highland and Lumberland.

Mirant’s taxes were computed against the higher assessment, which it is appealing. “Whether they pay it or not is another question,” said board president Bob Burrow.

The board will meet again on August 28 to finalize the tax levy. Tentative numbers provided last week showed a rate per $1,000 of assessed value at $14.79. That translates to a 4.5 percent increase for Lumberland and a 19.5 percent decrease for Highland.