Owego Apalachin Central School District

Many people have questions about their school tax bills – we thought readers might appreciate answers to those that are asked most frequently.

Are local property taxes the sole source of revenue for the school district?

No. The school district’s revenue comes from the local tax levy, from state school aid, from federal grants, from interest income, and from other miscellaneous sources. Local property taxes contribute approximately 38 percent of the district’s total revenue.

What is a tax levy?

The levy is the total amount of local property taxes collected in support of schools in the district. For 2008-09, the OACSD tax levy is $15,001,383.

Is the tax levy the same as the tax rate?

No. The tax rate is the amount, per thousand dollars of assessed property value, that each property owner pays on his/her property.

How is the amount of the tax levy established?

Each year, voters cast ballots for or against a proposed school district budget. Part of that budget proposal is an estimate of the amount of revenue, from all sources, needed to equal the expenditures in the proposed budget.

Once the state budget is approved in Albany, and other sources of revenue are known, the tax levy is the amount needed to bring revenues in line with expenditures.

Do all towns pay the same share of the tax levy?

No. There are five towns in the Owego Apalachin district – Owego, Tioga, Nichols, Newark Valley, and Candor. Each town pays a share of the total tax levy that is proportionate to their town’s share of the total property value in the whole district.

In our district, the largest proportion of property value is in the Town of Owego (over 80 percent). The remainder is split among the other towns relative to their total property value.

Why do tax rates change from year to year?

Tax rates are impacted by (1) the equalization rate (established by New York State to make assessments comparable in townships across the state); (2) by changes in the assessed value of taxable property in each town; and (3) by the total amount of the tax levy to be collected in support of that year’s school district budget. The interplay of these factors each year determines the tax rate for each town.

How does the PILOT agreement with Central New York Oil and Gas (CNYOG) affect property taxes?

In January, 2007, the New York State Supreme Court heard an assessment challenge filed by CNYOG, who sought to lower the assessed value of their property in the Town of Owego.

One of the results of the court-ordered settlement was that CNYOG would continue to make payments to the school district at 100 percent of their current property’s assessed value, but those payments would be made through a Payment In Lieu of Taxes (PILOT) mechanism, rather than as a tax payment.

Under this agreement, CNYOG remains the school district’s largest private contributor toward the annual school district budget, paying more than $2 million annually.

The court-ordered settlement removed the CNYOG properties from the Town of Owego’s assessed property value. This change in assessed value decreases the Town of Owego’s portion of the tax levy and consequently increases the portion of the levy that the other four towns are responsible for.

Though irregularities between town rates are normal (see above), this particular year the rates vary significantly due to this court-ordered settlement.

- Dr. Bill Russell, OA superintendent of schools



	Your 2008-09 School Taxes - Q&A Many people have questions about their school tax bills – we thought readers might appreciate answers to those that are asked most frequently. Are local property taxes the sole source of revenue for the school district? No. The school district’s revenue comes from the local tax levy, from state school aid, from federal grants, from interest income, and from other miscellaneous sources. Local property taxes contribute approximately 38 percent of the district’s total revenue. What is a tax levy? The levy is the total amount of local property taxes collected in support of schools in the district. For 2008-09, the OACSD tax levy is $15,001,383. Is the tax levy the same as the tax rate? No. The tax rate is the amount, per thousand dollars of assessed property value, that each property owner pays on his/her property. How is the amount of the tax levy established? Each year, voters cast ballots for or against a proposed school district budget. Part of that budget proposal is an estimate of the amount of revenue, from all sources, needed to equal the expenditures in the proposed budget. Once the state budget is approved in Albany, and other sources of revenue are known, the tax levy is the amount needed to bring revenues in line with expenditures. Do all towns pay the same share of the tax levy? No. There are five towns in the Owego Apalachin district – Owego, Tioga, Nichols, Newark Valley, and Candor. Each town pays a share of the total tax levy that is proportionate to their town’s share of the total property value in the whole district. In our district, the largest proportion of property value is in the Town of Owego (over 80 percent). The remainder is split among the other towns relative to their total property value. Why do tax rates change from year to year? Tax rates are impacted by (1) the equalization rate (established by New York State to make assessments comparable in townships across the state); (2) by changes in the assessed value of taxable property in each town; and (3) by the total amount of the tax levy to be collected in support of that year’s school district budget. The interplay of these factors each year determines the tax rate for each town. How does the PILOT agreement with Central New York Oil and Gas (CNYOG) affect property taxes? In January, 2007, the New York State Supreme Court heard an assessment challenge filed by CNYOG, who sought to lower the assessed value of their property in the Town of Owego. One of the results of the court-ordered settlement was that CNYOG would continue to make payments to the school district at 100 percent of their current property’s assessed value, but those payments would be made through a Payment In Lieu of Taxes (PILOT) mechanism, rather than as a tax payment. Under this agreement, CNYOG remains the school district’s largest private contributor toward the annual school district budget, paying more than $2 million annually. The court-ordered settlement removed the CNYOG properties from the Town of Owego’s assessed property value. This change in assessed value decreases the Town of Owego’s portion of the tax levy and consequently increases the portion of the levy that the other four towns are responsible for. Though irregularities between town rates are normal (see above), this particular year the rates vary significantly due to this court-ordered settlement. - Dr. Bill Russell, OA superintendent of schools