Budget, taxes and the Equalization Rate: Statement from Town Supervisor Melinda McKnight (Oct. 2023)

Claims are being made by some people in Hurley that Town property taxes will go up in 2024 due to the "low Equalization Rate." This demonstrates a flawed understanding of how assessments and taxes work.

The tax levy is the amount of money each taxing district needs to generate in order to operate. The Town of Hurley has set its tax levy for 2024 at virtually the same level as 2023.

While it’s true that the Equalization Rate in Hurley is currently 64.4%, an increase in the rate will not necessarily result in higher taxes.

The Equalization Rate has to do with the difference between the Assessed Value and Market Value of Real Property. New York State wants communities to be at 100%, which means the Assessed Value will be closer to Market Value.

If the value of all Real Property in the Town increases but the tax levy stays the same, the result will be that the taxation rate of per $1,000 of Assessed Value will go down.

Currently, the taxation rate for the Town is 97 cents per $1,000 of Assessed Value. The taxation rate for the Highway Dept is $1.78 per $1,000 of Assessed Value.

Considering the proposed 2024 tax levy is the same as the 2023 levy, the rates should decrease.

If anyone has questions or wishes clarification, do not hesitate to contact me at (845) 331-7474, option 5, or supervisor@townofhurley.org.

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See also: New York State’s “Understanding the Equalization Rate” page at tinyurl.com/3upyy6h5.

See also: “Town's 2024 budget draft calls for less spending, slightly lower tax levy” on the Town of Hurley website at tinyurl.com/3mj8nwu4.