The Property Tax Conundrum

There can be good reasons why more money is needed. Local governments across the country argue that they are being forced to pay more for education, energy and public employees while receiving less help from the state and federal level. In areas where home values have now started to decline, a loss in projected revenue could add to the strain.

In 2005, New Yorkers had the fourth-highest tax bills in the nation, equal on average to 1.2% of their home value or 4.6% of their income. Lawmakers in Albany have tried to ease the pain by offering a plethora of rebates and exemptions. The School Tax Relief (STAR) program alone hands out $2.5 billion statewide.

Unfortunately, those programs seem to create confusion. In Oneida County, Sherrill City Manager Robert Comis says taxpayers often appear frustrated at his doorstep, unsure of what assistance is available. "If it takes 45 minutes to explain something," he says, "it is not clear."

Some residents are clamoring for a simpler solution. Gioia Shebar of Gardiner in Ulster County spearheads a grass-roots effort to eliminate property taxes for education through her Web site taxnightmare.org. She never thought she would get involved in something as "unsexy as tax reform" but believes rebates are a "Band-Aid, not a real solution."

Her movement has attracted an eclectic collection of conservative and liberal supporters, including photographer and self-described socialist Marlise Momber. Like many homeowners hit hardest by recent property tax increases, Momber is house-rich with a moderate income. Her Victorian home in New Paltz cost her $133,000 in 1997. It was recently assessed at $340,000. Momber, whose taxes have already jumped 62% over the past decade, says she "dreads going to the assessor" to face another increase.