By Brianna Staudt
Village tax rates will rise modestly heading into the new fiscal year June 1 as local governments take measures to blunt the impact of the COVID-19 pandemic economic downturn on taxpayers.
Tax rates are rising between two and three percent for Dobbs Ferry, Irvington and Tarrytown residents. Sleepy Hollow residential property owners will not see an increase in their tax rate. However, commercial and industrial property owners in that village will see a four percent rate increase.
Village governments used various tactics to lighten the impact of lost revenue and increased expenses on the 2021-22 budget. Officials are banking on cautiously optimistic improved economic conditions will lead to a more favorable environment for the 2022-23 budget.
2021-22 Local Village Tax Rate Summary
|Dobbs Ferry||Irvington||Tarrytown||Sleepy Hollow|
|2021-22 Tax Rate Change||+2.5%||+2%||+2.95%||+0% Homestead; +4.108% Non-Homestead|
|2021-22 Tax Rate*||$7.09||$7.97||$8.54||$35.63 Homestead;
* Per thousand of assessed valuation
✝ Town of Mount Pleasant does not assess properties at full value
Irvington relied on $428,000 in past years’ surplus (which is, technically, unassigned fund balance) to arrive at its two percent rate increase for residents. Dobbs Ferry also relied on surplus to balance its budget, along with a $300,000 transfer from debt service.
Village parking revenues plummeted last year. Tarrytown, which hosts a Metro North express stop, realized a nearly $1.2 million revenue shortfall due to a steep drop in commuter parking and the closure of major downtown draws including the Tarrytown Music Hall, which led to a precipitous drop in meter revenues. Hotel taxes also posted a significant decrease. Tarrytown appropriated (transferred) $300,000 more than it would in a typical year from its well-performing Water Fund into its General Fund to help offset lost revenue. Officials noted this measure is a fix that shouldn’t — and couldn’t — be regularly used.
Sleepy Hollow spent more than $1.5 million than it budgeted in the “community and economic assistance” category in 2020-21, but that number seems to have been offset by less spending in other areas, including “culture and recreation” and transportation.
Village taxes are a relatively low portion of a resident’s overall property tax bill. They generally make up around 20 percent of the bill. School district taxes typically make up between two and three times that amount. Town, county, sewer and waste taxes make up the remainder of the bill.
New village tax rates go into effect June 1. Residents don’t vote on their respective village budget (and tax rate changes within) — they vote only on the trustees and mayor who help develop it and then approve it. Residents had a say on school district taxes when they voted on school budgets May 18. All local school budgets passed.
For more information, residents can browse each village’s adopted budget on their respective web sites, or contact the village clerk in each municipality.