Alternative Veterans Tax Exemption
Summary
P R E S E N T E D T O T H E B O A R D O F E D U C AT I O N
NOVEMBER 4, 2014
Real Property Tax Law § 458-a
 As of December 2013 legislation was passed allowing school
districts to join other municipalities in offering a tax reduction in
the form of a Veterans Tax Exemption
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Individuals must apply to be eligible
Reductions similar to the STAR exemption, however is not funding by the state
3 Levels: Wartime, Combat Zone and Disability
 Unlike Municipalities, the December 2013 decision is silent on
the issue of revocability, indications are that legislation is
forthcoming to modify the current bill to address this issue
Impact on Rye City Residents
 Eligible veterans who apply could receive the following
maximum tax reduction:
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Wartime: $594
Combat Zone: $990
Disability: $1980
 Presently, there are 252 City homeowners within the RCSD
who are receiving an alternative veteran's exemption.
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Equates to $394,000 in assessed valuation
Tax impact to RCSD is $221,248
Estimated: Tax Rate Increase: $1.7795/per $1,000 of assessed value
Annual Increase ($28,500 assessed value): $51.00
Board Resolutions
 Resolution 1: Basic Veterans Exemption
 Basic exemption includes three levels of exemption:
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Wartime
Combat
Disabled
 Resolution 2: Modify Exemption Amount
 High-appreciation municipalities have the option to increase the exemption to
maximum level
 To maintain consistency with the current levels that the City of Rye offers, the
City is the district sole source provider of assessment information that makes
tax collection possible, accuracy is crucial.
 Resolution 3: Extend the Exemption to Cooperative Corporation
 Extends exemption beyond real property ownership to Co-Op owners
 To maintain consistency with the current levels that the City of Rye offers, the
City is the district sole source provider of assessment information that makes
tax collection possible, accuracy is crucial.