Two tax exemption programs pass — one delayed by recusals and absent Board member

Two of three proposed tax exemptions — one for seniors and another for those who agree to create accessory dwelling units (ADUs) as rental spaces won easy approval from the Town Board at its June 29 meeting.

When first introduced, the exemptions for those having ADUs constructed on their properties met with some resistance.

The exemptions are designed to aid seniors on fixed incomes to stay on the Island; or be an incentive to residents to increase the rental units on the Island without being penalized for the value of ADUs needed by the community; or to firefighters and EMTs to become volunteers in one or both of those volunteer services.

Once Supervisor Amber Brach-Williams provided information about the limits of the exemption was not a boondoggle for wealthy individuals who would profit mightily by a tax exemption after creating rental units while capitalizing on high level rents they receive, the complainants became silent.

To be eligible the rental unit must be for a year-round resident, not a summer vacation house. The only part of the tax exemption was for the value of the ADU, not the entire property. It would be limited to affect up to a $200,000 increase and eligibility for the tax exemption would exist initially for only a five -year period. Where the equalization rate equals or exceeds 95%, the increase in assessed value would equal the market value.

After the first five years the exemption would increase each year by 25% for three additional years. In the final two years, of that period, the exemption would decrease by 10% for each of the remaining two years.

Creation of an ADU is not meant to simply be for repairs to the original structure but actual construction costs of at least $3,000. The ADU would have to be registered as an accessory apartment to the owner’s primary residence and the yearly rental cost must be at or below the New York Housing and Urban Development fair market rent for the County.

ADUs don’t have to limit their rental prices but those who fail to do so will not be eligible for the tax exemption.

The estimate of the number of people who could qualify for an exemption is expected to be about seven.

Senior exemptions

The new tax exemption for seniors is part of a long-standing program but increases the exemption for up to 65% of their property tax burden. The amount of the exemption is calculated on a sliding scale based on the real property tax law.

FD and EMT exemptions

FD and EMT exemptions are to reward those who train and function as firefighters and/or emergency medical technicians as a reward for their volunteer service to attract and hold those volunteers.

It could not be acted on in June because two members of the Town Board had to recuse themselves from the vote — Ms. Brach-Williams who is treasurer of the Fire Department’s Board of Commissioners and Councilwoman Liz Hanley, whose husband is a volunteer.

With one Town Board member absent, that would leave only two members to vote when passage of the exemption would require three votes. When a full Town Board is expected to be present on July 29, the vote will be held and in advance, details of that exemption will be outlined. An outline of that exemption appears on the agenda of the June 29 Town Board meeting at which the delay in a vote was explained.

It changes some terms of the exemption, but has been a popular exemption for several years.