Over the years, the New Lebanon Board of Education has addressed whether to grant a Veterans tax exemption. We previously declined to do so in March, 2019, in response to a voter petition which was not authorized by law.
This fall, we have again received correspondence from the public and local government officials asking us to adopt a Veterans tax exemption. At our meeting on November 12, 2021, following a discussion in public session, the Board decided not to hold any further public hearing or add any other action item regarding the Veterans tax exemption to a future agenda, for the following reasons:
1. A Veterans tax exemption does nothing to reduce taxes or save money for the taxpayers of the School District as a whole. In order for one person or group to get a tax break, the remaining residents must make up the difference by paying higher property taxes; and
2. The Board is committed to spreading the tax burden as equitably as possible among the taxpayers.
The Board’s longstanding position does not imply any disrespect to Veterans in our community. We have the utmost respect for all Veterans and thank them for their service. A Veterans tax exemption would be welcome if the cost of the exemption was borne not by our neighbors, but by the State – similar to the STAR or Enhanced STAR exemptions. The STAR exemptions do not shift additional financial burden from one class of residents to another within the community.
The Board and Administration struggle every year to maintain the highest quality of education for our students, those currently in our schools and those yet to enter, while being ever mindful of the annual tax burden this places upon all New Lebanon residents. While we are careful in developing fiscal strategy and monitoring our budgets, we recognize that no matter how prudent we are, over time, increasing costs will require some increase in taxes and difficult choices. We understand and share the pain every resident experiences when they get their tax bills each year. A status-based tax exemption, such as the Veterans tax exemption, while well-intentioned and beneficial to some, over time, merely compounds property tax increases for everyone else.