OGDENSBURG, New York (WWNY) – After a property reassessment in Ogdensburg, the city could stand to collect much more in property taxes. But that may not be the way this works out because of the state’s tax cap.
The reassessment will add $71 million of taxable property in Ogdensburg. That’s a 25 percent increase over last year.
That could equal more than $1 million in added tax revenue that Ogdensburg could collect. However, New York state caps a property tax increase at 2 percent each year and Ogdensburg can’t collect more than that 2 percent increase unless city council votes to override the tax cap.
“They were presented with a resolution to call for a public hearing, which is required by New York state law to override the tax cap. That did not go forward, and the feedback we received as early as just last night was a reminder that the council is and continues to be disinterested in overriding, at least the majority of council, overriding the tax cap at this time,” said Ogdensburg Interim City Manager Andrea Smith.
In theory, the city could collect more than $1 million in new tax revenue. But with the tax cap in place, the total will be much less.
“Despite the fact that we have a 25% increase in the overall taxable value of property, we anticipate that would result in about somewhere between $90,000 and $95,000 in increased revenue in the property tax line in the city’s budget for 2024,” said Smith.
Smith says she’s not surprised council is hesitant to override the tax cap, as the focus for 2023 is to reduce the tax rate. She says though the conversation should still be had.
“It is and it continues to be staff’s recommendation to at least have the public hearing, pass the resolution, which would allow the council the opportunity to override the 2% tax cap even if they choose not to in the end,” said Smith.
We reached out to the members of city council for comment. All of the members we spoke to told us that they needed more time to examine the figures before they would make a statement.
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