A new local law in Ulster County would give some residents a 50% exemption on their property tax payments.
The law is designed to lower property tax bills for low-income homeowners, many of whom buy houses at below-market rates through programs like Habitat for Humanity. The problem, according to District 19 Legislator Lindsey Grossman, is that buyers still pay property tax based on the full value of the house.
"When they buy these homes, they're legally restricted down the line from selling that same home at market rate," said Grossman. "The whole idea is that over a long period of time, these organizations who invested in this house want to make sure that it's available for other affordable families down the line, and so we really felt that it was unfair that people were paying property taxes on a value that they really could never take advantage of."
Grossman wrote the legislation, which she estimates will save those homeowners several hundred dollars a year. But, she says, "If towns in school districts follow the lead of what we did at the county tax level, these savings can go towards $3,000 per year."
Grossman’s legislation was passed unanimously by the Ulster County Legislature. It now faces a public hearing before it’s signed into law.
