05/13/2026
Patty, here's part 4. Thank you for the questions. Quite a diverse set of issues...!
The Enhanced Senior Exemption
Here’s the TL;DR. Yes. I am largely in favor of the Enhanced Senior Exemption, but I do have concerns about the impact on other vulnerable groups. I believe these concerns will be partially addressed by available data from the Town’s tax bills in January 2027. But I don’t like making half promises, so I reserve final judgment until we can see those numbers.
And now the long version.
As a quick primer, in PVCSD there is currently a 50% tax exemption off assessed value if two conditions are met: 1) the homeowner is over 65, AND 2) the household falls below a low-income threshold ($50K). That means if your home is assessed at $500K, qualifying seniors can knock $250K off of their assessed value when taxes are calculated. (And of course, property value is the basis for school taxes – which I don’t love, but that’s another issue altogether.)
In December, Albany passed a law that allows local districts to implement an “Enhanced Exemption” which sets a sliding scale of exemptions ranging from 65% for those making less than $47K all the way down to 5% for people making just under 58K. Putnam County and the Town of Putnam Valley enacted the Enhanced Exemption in February but the school district (which is responsible for a much larger chunk of our local property taxes) did not. That brings us to today, where the question will be re-visited by next year’s school board.
In principle, I am in favor of the Senior Tax Exemption increase. If you had to put a number on it, I’m about 80% of the way there. I believe in protecting the vulnerable and supporting our seniors -- no one should be losing their home over taxes if we can help it. That part is simple.
Here’s the 20% where I’m not fully decided. There are three consequences that flow from the Enhanced Exemption:
- Everyone Else’s Taxes Go Up. Every tax dollar exempted from one taxpayer is redistributed to the rest of the tax base. It does not reduce the overall amount of the tax levy and it does not affect the budget. By the district’s own calculations, the Enhanced Exemption will redistribute an estimated $240K in taxes from low-income seniors to the remaining 4,300 taxpayers in PV – an average of $55 per tax bill. In tax levy terms, that is roughly a .5 percent tax increase in a community that can have very strong opinions about 1.9% tax increases from year to year. Personally, as a taxpayer, I am willing to bear that increase. Your mileage may vary.
- Other Vulnerable Groups Will See a Tax Increase. There are a lot of other people in Putnam Valley who are also on a fixed income or low-income. This includes retirees under 65, people on disability, households with lower income and any other group of homeowners who don’t meet both conditions of age and income. Most importantly, this includes other seniors who are just above the exemption thresholds.
In other words, many low income seniors would be asked to pay higher taxes to cover the exemptions of slightly lower income seniors. Anyone saying that this is a tug of war between “protecting seniors” and “not protecting seniors” is not painting the full picture. This is about trading off some groups with others (including seniors versus seniors) and we need to be careful when we do that.
- Households Who Pay Zero Tax. Tax exemptions stack. That means a household can stack various exemptions (Veterans, Fire Dept, Ambulance, Enhanced STAR) until they have a 100% exemption. As a result, some number of households will pay zero tax under the new exemption. I am not personally stuck on this point, but I can understand the objection that nobody should be paying absolutely zero taxes.
Finally, the data. The district can see tax bills, but it does not have access to W-2s or income information for each household. As a result, it was not possible to see exactly how the Enhanced Exemption would play out without passing it.
But, the good news is that the Town (not the district) has already passed the Enhanced Exemption. That means by next January, the District should be able to see Town's shared data that tells us how many seniors in each income level qualified. That will in turn tell us exactly how much overall tax will be redistributed to other taxpayers, and also leave enough time for some fact-finding -- both on income data for district residents and to hear from the community on their perspective. Better data means better decision-making. My gut says that the impact will be small enough that the exemption can be implemented responsibly. I hope it’s right.
And finally (I’m so sorry, yes there’s more), there have been at least 2 bills introduced in Albany in this session and the last that would reimburse school districts for any tax impacts from Enhanced Exemptions. In other words, the tax burden would not shift – the State would cover the new exemptions. (This is how the STAR exemptions work.) To me, that makes this a no-brainer. I would support those bills and any similar bills. That is tax relief for low-income seniors with no meaningful impact on anyone else.
So, to your last point Patty -- frankly, “Lobbyist” is not one of the many careers I have undertaken to date - but yes, I would certainly be willing to give it a try.